Vietnam has officially approved a $67 billion high-speed railway project linking Hanoi and Ho Chi Minh City, a significant investment aimed at enhancing infrastructure and attracting foreign investment. The railway will span over 1,500 kilometers (930 miles), drastically reducing the current travel time from approximately 30 hours to about five hours.
The National Assembly's resolution on investment policies for the railway project was confirmed on November 30, 2024. Vietnam's transport infrastructure has faced criticism for its inadequacies, particularly with a road network that struggles to meet demand and an underdeveloped rail system.
International Business Advisor Dan Martin emphasized the project's potential to invigorate the Vietnamese economy, facilitating the movement of essential components to manufacturing hubs and expediting the delivery of goods. The Deputy Minister of Planning and Investment, Tran Quoc Phuong, labeled the railway a 'breakthrough' for the nation, predicting an average GDP increase of 0.97 percentage points annually.
Originally proposed in 2010, the project was shelved due to concerns over its cost. However, the current momentum for high-speed rail in Southeast Asia, with recent developments in Laos and Indonesia, has revived interest in the initiative. The new railway will include 23 stations across 20 cities and provinces, enhancing regional connectivity.
Scheduled to commence in 2027 and expected to be completed by 2035, the project aims to modernize travel options for locals. However, past infrastructure projects in Vietnam have experienced delays, raising questions about the feasibility of the timeline.
As of 2023, Vietnam ranks 52nd out of 185 economies in the Global Quality Infrastructure Index, trailing behind several ASEAN nations.