Huge opportunities with North-South high-speed rail

The Ministry of Transport proposes a design speed of 350 km/h, a total length of 1,541 km, twin tracks, a gauge of 1,435 mm, and an estimated cost of US$67.34 billion for the mega project.

A proposed North-South high-speed railway project could soon turn the dream of having breakfast in Hà Nội and lunch in HCM City into a reality. With a travel time of just five and a half hours between the two cities, the project promises to revolutionise domestic travel.

The current train system takes significantly longer to cover the same distance, and even coach journeys are considerably slower. The high-speed railway, however, is set to transform travel times between Hà Nội and key cities such as Vinh, Đà Nẵng, and Nha Trang. Travelling between these cities will be reduced to 1 hr 18 mins, 2 hrs 42 mins, and 4 hrs 18 mins, respectively. In some cases, journeys by train will even be quicker than flying, considering the time spent waiting at airports and going through security.

Recognised as a crucial and necessary infrastructure development, the project has recently received approval from the Politburo and the Central Committee of the Việt Nam Communist Party. The Government is set to present the investment plan to the National Assembly during this month’s meeting.

The high-speed railway is not only expected to improve connectivity between regions but also to create significant economic opportunities. It is forecast to generate economic spillovers, opening up new areas for development and transforming the way urban spaces are structured.

The Ministry of Transport emphasises that the railway will boost the competitiveness of the economy by improving the efficiency of transport and reducing travel costs.

The ministry has proposed a design speed of 350 km/h for the 1,541-kilometre railway, which will feature twin tracks and a 1,435-mm gauge. The project is estimated to cost US$67.34 billion.

Once completed, the electrified railway will include 23 passenger stations and five freight stations, with connections to major cargo hubs across the country. Starting from Ngọc Hồi station in Hà Nội, the line will pass through 20 provinces and cities before ending at Thủ Thiêm station in HCM City.

Reducing reliance on foreign financing

Nguyễn Danh Huy, deputy minister of transport, said that the high-speed railway would primarily be funded by the State budget.

“With a spirit of independence and self-reliance, the Politburo has decided that we will not rely heavily on foreign loans. Borrowing from other countries often comes with conditions, and we want to avoid that,” Huy said.

While foreign loans might be considered if necessary, Huy said that these loans would be minimal and must involve technology transfer to Việt Nam. The decision would also take into account costs and the potential to develop domestic technology.

Huy acknowledged the scale of the project, noting that its vast scope and the pressure to meet deadlines would present significant challenges. To address these challenges, the Government would mobilise resources from across the political system and seek partnerships with both domestic and foreign contractors. It would also involve design and supervision consultants to ensure the project stays on track.

As for which country’s technology would be chosen for the high-speed railway, Huy said that this decision would depend on the conditions of the technology transfer and the level of support offered.

Prime Minister Phạm Minh Chính has ordered the implementation of special mechanisms to expedite the project. These mechanisms are expected to streamline procedures and aim to shorten the construction timeline, allowing the railway to be completed within the proposed timeframe.

Training the workforce

Building and operating the North-South high-speed railway will require a significant labour force. Around 13,800 workers will be needed to operate and maintain the railway, according to Vũ Hồng Phương, director of the Railway Projects Management Board.

Additionally, between 700 and 1,300 people will need to be trained for project management, while another 1,000 to 1,300 will be required for consultancy roles.

During the construction phase, approximately 220,000 workers will be needed to handle manufacturing, construction, and material production.

To meet these demands, a portion of the workforce will receive training as soon as the project is approved. This training will focus on studying the type of technology to be used, project management, and overseeing the project’s various stages.

The Ministry of Transport has outlined a human resource training programme, which will include a mix of domestic and international training. Workers will be trained at different levels—technicians, engineers, MA and PhD holders—to ensure that Việt Nam has the skilled workforce needed to complete the project successfully.

Complementing air travel

Addressing concerns about competition with airlines, Huy said that the high-speed railway would not compete with air travel but would complement it. “Both modes of transport will enhance each other,” he said.

The railway was expected to play a crucial role in reshaping the passenger transport market by providing a sustainable alternative to road and air travel for medium distances (between 150 and 800 km). This shift would not only reduce traffic accidents but also lower environmental emissions.

For shorter distances, road travel would remain the most efficient option, while the high-speed railway would dominate routes between 150 and 800 km. Air travel would continue to be the preferred mode for longer distances (more than 800 km).

Huy noted that once the high-speed railway was operational, airlines were expected to give up shorter routes and focus on long-haul flights, where they have a competitive advantage.

Meeting the 2035 deadline

Many have questioned whether the high-speed railway can be completed within the eight-year timeframe, given the project’s scale. Construction is scheduled to begin in 2027, with completion expected by 2035.

Huy acknowledged that Việt Nam had no experience in building high-speed railways, which would add to the challenges. He said site clearance alone could be a lengthy process, with many projects initially expected to clear sites in three years but taking five to six years in practice.

However, Huy expressed confidence that with political resolve and the mobilisation of resources, the project would be completed on time.

He pointed to successful domestic infrastructure projects, such as the Mỹ Thuận cable-stayed bridge and the North-South Expressway, as examples of Việt Nam’s growing capacity to handle large-scale projects.

According to the World Bank, this is the right time for Việt Nam to invest in high-speed rail. With GDP per capita expected to rise to around $7,500 by 2030 and the economy projected to grow to $564 billion by 2027, the country is well-positioned to finance the project.

Việt Nam’s public debt is also relatively low, at just 37 per cent of GDP.

These encouraging indicators suggest that Việt Nam has both the resources and the capability to complete the North-South high-speed railway project, bringing the country one step closer to realising its long-term economic goals.