High-speed rail could yet become reality (illustration photo/ Source: freepik.com)

At a workshop held last week by the Vietnam Institute for Economic and Policy Research in Hanoi, Pham Chi Lan, an economist and former vice president of the Vietnam Chamber of Commerce and Industry, said she supported the idea, and emphasised that it would be vital for Vietnam’s future, though she acknowledged the challenges in its execution.

“Although significant investment has been made in other forms of transport, high-speed rail will remain a critical piece of infrastructure with numerous long-term benefits,” Lan said. “But the biggest challenges are how and when we implement it and where the necessary resources will come from. It’s crucial that we’ve studied the project carefully and considered all alternative approaches.”

Initial proposals for a high-speed rail line outline a plan to start at Ngoc Hoi station in Hanoi and end at Thu Thiem station in Ho Chi Minh City, with a total length of almost 1,550km. The railway would pass through 20 provinces and cities.

The Politburo has approved the general plan for a 350km/h railway, to be developed using public funds. It would be designed to meet both civilian and military needs, with the potential for transporting goods if required.

The proposal enjoys broad support, but experts are divided between two options: building a railway capable of 350km/h, which would be for passenger use only, or a more moderate-speed option, around 250km/h, which would cater to both passengers and freight.

“Transporting goods efficiently and at a lower cost will significantly enhance economic development and raise the quality of life for many. As the economy grows and incomes rise, people will be better able to afford to use high-speed rail. Without this economic progress, we may not achieve the expected revenue from passenger services,” Lan said.

Another point raised by Lan was the growing role of private Vietnamese enterprises in large-scale projects. “In the past, major projects were usually handled by state-owned or foreign enterprises. Today, however, Vietnam’s private sector has grown remarkably, and many large firms now can contribute meaningfully to important projects like this,” she said.

The economist also warned of the natural challenges presented by Vietnam’s geography, particularly in the central region, which is prone to extreme weather.

“We must thoroughly assess the risk of landslides, floods, and other natural disasters. If these factors aren’t properly accounted for, the project might not deliver the desired outcomes,” she said.

Last week, the Ministry of Planning and Investment (MPI) issued a notice on the conclusions of the State Appraisal Council on the pre-feasibility study of a north-south high-speed rail line. Minister Nguyen Chi Dung, who chairs the council, emphasised the special nature of the project, both in terms of its scale and its long-term technological impact.

“This is a critical piece of transport infrastructure that will influence Vietnam for hundreds of years. The appraisal process must be handled with care, insight, and expertise to offer sound recommendations for policymakers,” Minister Dung stated. “We need to carefully consider how this infrastructure will connect with other transport corridors, seaports, airports, and neighbouring countries such as China, Laos, and Cambodia,” he said.

The railway must also be designed to minimise construction costs by following a straight route, avoiding urban areas, and opening up new development spaces. This updated plan has already been integrated into the provincial planning of the regions it will pass through.

“The route has been thoroughly studied to ensure it meets the economic and technical requirements for the designed speed while offering passengers a smooth travel experience,” said Deputy Minister of Transport Nguyen Danh Huy.

Huy also highlighted the importance of station design, noting that stations must be large enough to accommodate future growth and offer a range of modern services. “The long-term vision is to maximise land resources and create new spaces for development around these stations,” he said.

Minister Dung warned against inflating the proposal’s financial picture and called for an honest assessment of construction and operational costs. “This is a proposal with tremendous socioeconomic and national security value, but we need to ensure its financial feasibility. Specific mechanisms and impact assessments must be made to ensure its legal validity and compliance,” he said.

The MPI notice called for the Ministry of Transport to review and refine its total investment estimates, ensuring all calculations comply with legal regulations. The appraisal council has requested additional information on the proposal’s capital mobilisation plan to confirm that it is financially viable and legally sound.

Because it is expected to take more than 10 years to see any high-speed railway complete, Minister Dung acknowledged that the total investment could fluctuate due to external factors such as natural disasters, policy changes, or inflation. He reassured stakeholders that the feasibility study would be regularly updated to ensure the project’s accuracy and suitability to Vietnam’s current conditions.

Economist Lan also underscored the importance of broad consultation, involving not only experts but also the public.

“With an estimated investment of $70 billion, it’s not only about making sure the project is efficient, but also about weighing the opportunity costs. We must carefully assess whether allocating such resources to this proposal might limit investment in other areas, such as digital and green transformation, or industrial modernisation, which could yield more immediate benefits,” Lan said.