Vingroup pledges full financing, advanced technology for metro project from downtown Ho Chi Minh City to coastal district

Vietnam's largest private conglomerate Vingroup has submitted a report to the Ho Chi Minh City Department of Finance on the investment in a metro line project connecting downtown Ho Chi Minh City with coastal Can Gio District, committing to fully financing the project and employing advanced technologies throughout the construction and operation phases.

Vingroup proposed the adoption of a Build-Own-Operate (BOO) contract model for the project.

Accordingly, the firm will be fully responsible for financing, investing in, constructing, managing, and operating the project for its entire duration, in full compliance with applicable legal regulations.

The company emphasized its preference for a Public-Private Partnership (PPP) approach, citing multiple advantages over traditional public investment models.

The municipal Department of Finance, appointed by the Ho Chi Minh City People's Committee, is tasked with guiding Vingroup through the procedural requirements of a PPP project proposal and organizing the evaluation of the submission.

According to Vingroup, the PPP model presents significant benefits in investment preparation, capital mobilization, technological application, and project management.

Unlike public investment, where the state bears the entire cost of feasibility studies, planning, and design, PPP allows for cost-sharing between public and private entities.

Private investors, involved from the early stages, can bring efficiency and innovation to the process, ultimately reducing financial burdens on the government.

Moreover, private sector involvement enhances the project's capital flexibility as investors can leverage both domestic and international funding sources through loans, bond issuance, or equity, reducing reliance on public funds.

As for technologies, private investors tend to implement modern solutions that improve project outcomes, particularly in sectors where cutting-edge technology is critical.

Vingroup also highlighted the efficiency gains in project execution that come with private participation, driven by profit motivation and professional project management.

PPP contracts often include stringent performance obligations, helping to avoid delays and cost overruns.

The project is planned to carry a price tag of nearly VND102.37 trillion (US$4.1 billion), and feature a 48.5-kilometer elevated double-track railway with a 1,435mm gauge.

Designed for a maximum speed of 250 kilometers per hour, it will include two depots -- one spanning 20 hectares in District 7 and the other covering 39 hectares in Can Gio.

In terms of capacity, trains will be able to transport 30,000-40,000 passengers per hour in each direction.

Established in 1993, Vingroup has grown into a multi-sector enterprise, active in technology, industry, commerce, services, and social philanthropy.

Its subsidiaries, including Vinhomes JSC and Vincom Retail JSC, remain leading picks for international investment funds seeking opportunities in Vietnam.

Vingroup is known for running several large-scale projects exceeding VND100 trillion ($3.8 billion) and is consistently among the country's top contributors in terms of assets, revenue, and tax payments.

"The group wishes to make a meaningful contribution to the country's development and to Ho Chi Minh City in particular," Vingroup stated in its report.

"The metro line project will serve as a catalyst for tourism, investment, and provide more convenient travel for residents and visitors by significantly reducing travel time from the heart of the city to Can Gio District."

In a related development, the municipal People's Committee has requested the prime minister add the proposed metro line connecting downtown Ho Chi Minh City with Can Gio District to the list of projects governed by the National Assembly's Resolution 188.

This resolution provides a framework for special mechanisms aimed at accelerating urban railway development in Ho Chi Minh City and Hanoi.

The metro line project is currently not covered under this resolution.

Metro line No. 1, stretching 19.7 kilometers from Ben Thanh Station in District 1 to Suoi Tien Coach Station in Thu Duc City, officially began operations on December 22 last year, marking a historic milestone in the development of urban transport for Ho Chi Minh City after 12 years of construction.

The first metro line carried a price tag of VND43.7 trillion ($1.7 billion).

The line has a total of 17 trains, each capable of accommodating 930 passengers, including 147 sitting and 783 standing.

The first metro line project was launched in 2006, and its construction began in 2012.

Tieu Bac - Duc Phu / Tuoi Tre News

(2025/04/24-17:36)