Log in
Social Affairs

New national express railway option can save Vietnam US$32 billion

Experts said that railway with a design speed of 350 km/h and a total investment of US$58.71 billion implies numerous risks, adversely affecting the allocation of funds for the development purposes.

Vietnam’s first express railway running from Hanoi to Ho Chi Minh City may cost around US$58.7 billion, according to a pre-feasibility report announced by the Ministry of Transport (MoT). However, the Ministry of Planning and Investment (MPI) has said that the railway can be built with a total investment of about US$26 billion, US$32 billion less than the estimate by the MoT, local media reported.

The figure was given in the report on the implementation of the North-South express railway project that the Ministry of Planning and Investment has submitted to the Vietnamese government.
 
Illustrative photo
Illustrative photo
The report, signed by Minister of Planning and Investment Nguyen Chi Dung, said that based on research and experience in the world, the investment construction cost of railway with speed of up to 200 km/h is 10% lower than investment cost for 350 km/h railway. Investment costs of equipment and facilities vary from 9% - 26%.

"Experts said that railway with a design speed of 350 km/h and a total investment of US$58.71 billion implies numerous risks, adversely affecting the allocation of funds for the development purposes,” the MPI report stressed.

The MPI added that the speed factor is a key issue of express railway and the maximum speed of 200 km/h is optimum as it has been shown in other countries. According to Germany’s assessment data, with the railway speed of 200 km/h in the North – South axis, the total investment of the project will be about US$26 billion.

Therefore, the Ministry of Planning and Investment proposed the government consider setting up a State Appraisal Council to assess the pre-feasibility report of the project. 

The council can hire consulting firms to ensure independence in verifying the pre-feasibility report of the project.

"Research results of the MoT and the MPI are related to the
project's scale and total investment. The MoT will continue to give explanation during the State Appraisal Council's appraisal process before submitting to the National Assembly for approval," the MoT affirmed in a statement release late Tuesday.

In July 2018, the MoT summited a report to the Vietnamese government on the high-speed train project’s progress. Specifically, the pre-feasibility study was scheduled to be completed in the end of November 2018. Once receiving the National Assembly’s approval, relevant sides will carry out the feasibility study, technical designs and site clearance during 2020-2025. Construction will begin in 2026 and be completed by 2050.
Reactions:
Share:
Trending
Most Viewed
VNU-Hanoi to compress bachelor programs to 3 years, boosting innovation goals

VNU-Hanoi to compress bachelor programs to 3 years, boosting innovation goals

Early graduation gives young people more opportunities to develop and validate their skills.

Career counseling offers youth expanded access to Hanoi labor market

Career counseling offers youth expanded access to Hanoi labor market

Hanoi is putting policies in place to support job placement. These policies include improving labor market forecasting, evaluating applications, approving loans, collecting market information, and connecting labor supply and demand.

Experts urge green architecture to fight climate change in hanoi

Experts urge green architecture to fight climate change in hanoi

Green architecture is key to turning Hanoi into a sustainable, modern, and energy-efficient city.

Specialties on show at OCOP Product Week 2025 in Hanoi

Specialties on show at OCOP Product Week 2025 in Hanoi

The event is an opportunity for One Commune One Product (OCOP) units of Hanoi and other localities to promote agricultural products, food, handicrafts, and traditional craft villages.

Vietnam achieves high human development rank in 2025 HDI Report

Vietnam achieves high human development rank in 2025 HDI Report

The launch of the 2025 Human Development Report spotlighted how artificial intelligence can serve as a catalyst for human development in line with Vietnam’s digital transformation strategy and global sustainability goals.

Hanoi expands bike-sharing service

Hanoi expands bike-sharing service

Bike sharing helps to diversify public transport, limit the number of private vehicles, and reduce emissions.

Kinh te & Do thi and Quang Tri newspapers jointly hold July Charity Program

Kinh te & Do thi and Quang Tri newspapers jointly hold July Charity Program

The program aims to support underprivileged students, honor those who strengthen a sense of humanitarian spirit, gratitude, and community involvement.

Unsung heroes on a mission to rescue To Lich River

Unsung heroes on a mission to rescue To Lich River

Hanoi not only needs some unspoken heroes, who are trying to clean To Lich River, but also the whole efforts of the community to save the historical, symbolic waterflow of the city.