[HANOI] Vietnam’s government is evaluating a proposal to build a $60 billion high-speed railway linking Hanoi and Ho Chi Minh City — a project that would rank among Asia’s largest infrastructure undertakings if approved and completed.
The rail line would sharply cut travel times between Vietnam’s political capital and its southern commercial hub, strengthening physical integration between the country’s two most important cities.
A Revival of a Long-Planned Project
Lawmakers had previously approved a $67 billion plan for the railway in November 2024, and earlier discussions included possible involvement by China State Construction, China’s largest construction company.
The new proposal has been submitted by Vinspeed, a company founded by Vietnamese billionaire Pham Nhat Vuong, and outlines a 957-mile high-speed rail corridor that would be delivered roughly five years earlier than the government’s previous timeline.
The project’s total cost is estimated at 1,562 trillion dong, or about $60.3 billion, though that figure does not include expenses related to land clearance.
High-Speed Rail at Asian Scale
A passenger rail system is generally considered high-speed if it operates at speeds of at least 124 miles per hour on upgraded tracks or 155 miles per hour on new tracks. More than 20 countries currently operate high-speed rail systems, with China, Japan, and South Korea widely viewed as industry leaders.
China has built the world’s largest high-speed rail network in just two decades, setting a benchmark for scale and speed of development.
Strategic Importance
Hanoi, home to about 8.7 million people, is Vietnam’s political center, while Ho Chi Minh City, with roughly 9.9 million residents, is its financial and commercial engine. A high-speed rail link between the two would represent a structural shift in how people, capital, and goods move across the country.
The government has not yet announced a decision on the proposal, but its evaluation reflects Vietnam’s growing willingness to consider mega-projects as part of its long-term economic development strategy.
