THACO proposes to build $61.35bln North-South express railway

Automaker Truong Hai Group (THACO) has proposed the Prime Minister to build the North-South high-speed railway with an estimated investment capital of over VND1.5 quadrillion ($61.35 billion).

According to the proposal, of the total amount, some 20% (roughly $12.27 billion) will come from the company’s equity.

The remaining 80% would be sourced from domestic and international loans, under a condition that the government provides sovereign guarantees and covers all interest payments over a 30-year period.

The cost does not include compensation and resettlement expenditures for land clearance.

As proposed, the project will consist of two phases. The first phase is scheduled for completion and operation within five years, covering two sections: from Hanoi to central Ha Tinh province and from Ho Chi Minh City to Nha Trang. The second phase will complete the remaining segment from Ha Tinh to Nha Trang within the following two years.

THACO aims to complete the entire line in 7 years.

The North-South high-speed railway project was approved by the National Assembly last November with estimated investment capital of VND1.7 quadrillion ($67 billion). It has a total length of 1,541 km and runs across 20 provinces and cities, stretching from Ngoc Hoi station in Hanoi to Thu Thiem station in Ho Chi Minh City.

Earlier, on May 14, VinSpeed High-Speed Rail Investment and Development JSC, a subsidiary of VinGroup, also registered to invest in the North–South high-speed railway project.

Under VinSpeed’s proposal, total investment capital of the project is estimated at VND1.562 quadrillion ($61.35 billion), excluding costs related to compensation, relocation support, and resettlement for land clearance.

VinSpeed commits to mobilizing 20% of the total investment capital, equivalent to VND312 trillion ($12.27 billion). For the remaining 80%, the company proposed borrowing from the state budget, through zero-interest loans, repayable over a 35-year period from the disbursement date.

As proposed by VinSpeed, the construction is expected to start in 2025 and complete by 2030.