Vietnam announced plans to construct a $67 billion high-speed railway connecting Hanoi and Ho Chi Minh City, a transformative infrastructure project expected to enhance connectivity and boost economic growth. The railway will span over 1,500 kilometers, cutting travel time from 30 hours to just five, AFP reported.
The National Assembly approved the project on Saturday, describing it as a pivotal investment for the country’s development. Deputy Minister of Planning and Investment Tran Quoc Phuong called the railway “a breakthrough” in Vietnam’s infrastructure, predicting it could increase GDP by an average of 0.97 percentage points annually.
The railway, set to begin construction in 2027 and finish by 2035, will include 23 stations across 20 cities and provinces, improving regional connectivity and offering faster travel options for locals. University student Pham Dang Quang expressed enthusiasm, noting the convenience of potentially traveling between the two major cities within a single day.
Vietnam’s transport infrastructure has long struggled to meet demand, with a road network under strain and a limited rail system. Experts say the project could cement Vietnam’s position in global supply chains. Dan Martin, an international business advisor, highlighted its potential to “supercharge the Vietnamese economy” by reducing lead times and supporting manufacturing hubs.
This marks a revival of a high-speed rail plan that was shelved in 2010 due to cost concerns. However, growing regional momentum for high-speed rail, evidenced by projects in Laos and Indonesia, has spurred Vietnam to proceed with the ambitious undertaking.
