On November 30, 2024, the National Assembly officially approved the investment policy for the North-South high-speed railway project, marking a historic milestone in the development of national transport infrastructure. With a total investment of more than 67 billion USD, the 1,541 km long route will connect major cities, contributing to promoting the regional economy, reducing traffic pressure and increasing national competitive advantages. The following article summarizes updated information and in-depth analysis of the project.

The North-South High-speed Railway Project Officially Approved by the National Assembly

Project Overview

Historic Resolution November 30, 2024

On the afternoon of November 30, 2024, the National Assembly passed a resolution to invest in the North-South high-speed railway project with 443/454 delegates in favor. This is a key project with:
• Total length: 1,541 km, from Ngoc Hoi station (Hanoi) to Thu Thiem station (HCMC), passing through 20 provinces and cities including Hanoi, Ha Nam, Nam Dinh, Ninh Binh, Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, Hue, Da Nang, Quang Nam, Quang Ngai, Binh Dinh, Phu Yen, Khanh Hoa, Ninh Thuan, Binh Thuan, Dong Nai, HCMC.
• Scale: New investment in the entire 1,435 mm double-gauge railway line, designed speed of 350 km/h, load capacity of 22.5 tons/axle.
• Infrastructure: Including 23 passenger stations, 5 freight stations, meeting both passenger and freight transport needs when necessary.

Total Capital and Special Mechanism

The North-South high-speed railway project is funded by public investment with a total initial capital of VND1,713 trillion (equivalent to USD67 billion). The National Assembly allows the Prime Minister to issue government bonds to mobilize additional capital, while exploiting ODA capital and foreign preferential loans.

Investment Phases

Phase 1 (2025-2035)

• Focus on building two priority routes: Hanoi – Vinh (281 km) and Ho Chi Minh City – Nha Trang (370 km).

• Estimated total cost for the first phase is 24.7 billion USD.

Phase 2 (2035-2045)

• Complete the entire route, connecting provinces and cities nationwide.

• Synchronously deploy the construction of auxiliary infrastructure, especially major stations.

Strategic Benefits of the North-South High-Speed ​​Railway Project

Promoting Inter-Regional Economic Connectivity

• Time saving: With a travel time of only 7 hours, the North-South high-speed railway project helps increase the efficiency of trade between Hanoi, Ho Chi Minh City and neighboring economic centers such as Da Nang and Nha Trang.

• Regional economic growth: The high-speed railway will facilitate the development of industry, services and tourism along the route.

Supporting Localization of the Railway Industry

• Increase the localization rate through domestic production of components, reducing dependence on imports.

• Create more job opportunities for engineers and workers in the railway industry

Reducing Pressure on Existing Transport Infrastructure

• Road: Reduce the load on overloaded national highways and expressways.

• Air: Reduce congestion at major airports such as Noi Bai and Tan Son Nhat.

Challenges for the North-South High-Speed ​​Railway Project

Pressure on Investment Capital

• Total investment capital is up to 67 billion USD, most of which depends on the state budget and international loans.

• Mobilizing capital from the private sector still faces many difficulties due to the large scale of the project and the long payback period.

Project Management and Implementation Capabilities

• The 20-year implementation period (2025-2045) poses major challenges in terms of progress and quality management.

• Depends on close coordination between state agencies and international contractors.

Proposed Solutions to Increase Project Efficiency

Promoting Social Resource Mobilization

• Strengthen public-private partnerships (PPP) in infrastructure construction and operation.

• Encourage businesses to invest in terminals to develop trade and services.

Strengthen Technology Transfer

• Require international contractors to transfer technology to domestic units, from production to maintenance.

• Establish high-quality human resource training centers to ensure effective project operation.

Proposed Future Project Expansion

Extending the North-South High-speed Railway Project Connecting the Whole Country From Lang Son to Ca Mau

• Some National Assembly deputies proposed extending the route from Lang Son to Ca Mau, not just stopping at Hanoi and Ho Chi Minh City.

• Connecting the whole country will increase the efficiency of the project and promote trade nationwide.

Conclusion: The Importance of the North-South High-Speed ​​Railway Project

The North-South high-speed railway project is not only a modern transport project but also a strategic driving force for Vietnam’s long-term socio-economic development. Although facing many challenges, if implemented effectively, the project will open a new chapter in the history of the country’s transport development.