VinSpeed registers $60bn investment in Vietnam's North-South high-speed rail

VinSpeed High-Speed Rail Investment and Development JSC, a newly established company under Vietnam's richest billionaire Pham Nhat Vuong, officially announced on Wednesday its registration to invest in the Nort-South high-speed railway project, with a proposed total investment of over US$60 billion.

Founded on May 6, 2025 in Hanoi, VinSpeed is the latest addition to Vuong's expanding business portfolio.

As chairman of Vingroup, Vietnam's largest private conglomerate, Vuong holds a 51-percent stake in VinSpeed, which has a charter capital of VND6 trillion ($231.4 million).

He also serves as the company's general director and legal representative.

   Reducing pressure on state finances

VinSpeed's proposal outlines a total project cost of VND1.562 quadrillion ($60.2 billion), excluding land clearance, compensation, and resettlement expenses.

The company has been committed to funding 20 percent of the investment roughly US$12 billion from its own resources.

For the remaining 80 percent, it seeks zero-interest loans from the state budget, with a repayment period of 35 years from the time of disbursement.

Compared to the investment framework approved under Resolution No. 172/2024 of the 15th National Assembly, VinSpeed's model would significantly alleviate the state's financial burden, especially considering that most high-speed rail projects worldwide face challenges in achieving profitability, often encountering prolonged losses and delays.

To support loan repayment and generate revenue, VinSpeed plans to collaborate with Vingroup and its real estate subsidiary Vinhomes to develop modern urban zones surrounding station areas.

These projects will follow a transit-oriented development (TOD) model designed to boost local infrastructure, improve quality of life, drive tourism, and spur economic activity.

   Targeting completion by 2030

VinSpeed has pledged to begin construction by December 2025 and aims to complete the full railway by December 2030.

The company said the project will lay the foundation for Vietnam's modern rail industry, create new momentum for regional development, and serve as a catalyst for national economic transformation.

VinSpeed is currently in talks with leading railway technology partners from China, Germany, and Japan to facilitate technology transfer and support the domestic manufacturing of locomotives, carriages, and signaling systems.

The company also plans to quickly roll out workforce training programs to build the necessary expertise and infrastructure for a sustainable railway industry in Vietnam.

VinSpeed described the initiative as a long-term commitment rooted in service to the nation, with aspirations to build a world-class railway system and improve quality of life across the country.

   A milestone for Vietnam's private sector

VinSpeed's investment registration aligns with Vietnam's broader push to promote science, technology, innovation, and digital transformation, as outlined in Resolution No. 57-NQ/TW and Resolutions No. 68-NQ/TW of the Politburo on developing the private sector.

Dao Thuy Van, deputy general director of VinSpeed, called the registration a historic milestone for Vietnam's private sector, noting the strong encouragement and expectations from the government and the public.

Acknowledging the scale of the challenge, Van said the company made the bold move to register with full awareness of the risks and responsibilities.

"We are committed to innovation and bold action," she said.

"With our market experience and flexibility, we believe we can generate sufficient revenue to cover costs and repay loans on schedule."

Van added that VinSpeed will collaborate extensively with domestic companies to build the full route and foster growth in the country's rail sector.

"We hope to receive strong, practical support from the Party, the state, the business community, and the public," she said.

Vinh Tho - Duc Phu / Tuoi Tre News

(2025/05/15-17:20)