The National Assembly has approved two new development modes for the North-South high-speed rail project: public-private partnership and fully private investment.
Lawmakers voted in favor of the new mechanisms Friday morning, and vested in the government the authority to identify the mode and investor for the project.
Originally designated as a public project, it has been attracting interest from companies after a recent Poliburo resolution promoted development of the private sector.
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A high-speed train in Shanghai, China. Photo by Pexels/Xiaodong Li |
Two major domestic conglomerates have submitted proposals to build the railroad.
VinSpeed, a company owned by Vietnam’s richest man Pham Nhat Vuong, offered to build the high-speed rail line by bringing in 20% of the US$61 billion funding required for it and borrowing the rest (equivalent to $49 billion) from the government.
Automaker Thaco Group also submitted a bid with similar conditions though it has offered to borrow the $49 billion from financial institutions, domestic and international, with the government just guaranteeing the loans.
Thaco plans to establish a subsidiary to manage the project and keep the project fully indigenous.
The rail route, approved by the National Assembly last year, will run 1,541 kilometers from Hanoi to HCMC, passing through 20 provinces and cities at speeds of 350 kilometers per hour and with 23 passenger and five freight stations.
Its feasibility study is slated to begin this year, with construction completion targeted for 2035.
