Vietnam’s planned 1,541 kilometer railway connecting Hanoi and Ho Chi Minh City has since selected Spanish firm Ineco to prepare its feasibility study. The Ministry of Construction has set a target of breaking ground on the line before the end of 2026, with basic operation planned by 2035.
VinSpeed Breaks Ground on Vietnam’s First High Speed Line
VinSpeed, the Vingroup unit that had proposed funding the Hanoi to Ho Chi Minh City line, withdrew that bid in December 2025 and has instead partnered with Siemens Mobility on its own projects. VinSpeed broke ground in April 2026 on a separate 120.2 kilometer, $5.6 billion high speed line linking Hanoi and Quang Ninh Province, becoming Vietnam’s first high speed railway under construction. A similar race against delay is playing out in South Korea, where construction has just begun on the $3.5 billion GTX-C express rail line after a nearly three year dispute over rising costs.
Project Overview
- Project Name: Vietnam High Speed Railway, Hanoi to Ho Chi Minh City
- Location: Vietnam, passing through 20 provinces and cities
- Owner and Authority: Vietnam Ministry of Construction
- Project Value: Approximately $67.34 billion
- Length: 1,541 kilometers
- Feasibility Study Consultant: Spanish firm Ineco, selected January 2026
- Construction Target: Groundbreaking targeted before the end of 2026
- Target Completion: 2035
- Investor Status: VinSpeed withdrew its proposal to help fund the project in December 2025
- Related Progress: Vietnam’s first high speed line, the 120.2 kilometer Hanoi to Quang Ninh railway developed by VinSpeed and Siemens Mobility, broke ground in April 2026
Project Team
- Owner and Authority: Vietnam Ministry of Construction
- Feasibility Study Consultant: Ineco
- Prospective Contractor: China State Construction Engineering Corporation
- Rail Technology Partner (VinSpeed lines): Siemens Mobility
- Related Project Developer: VinSpeed, a Vingroup company
Update 27th June 2025 – German engineering giant Siemens has expressed keen interest in participating in the construction of Vietnam’s North-South high-speed railway, among other major infrastructure initiatives in the country. The proposal was made by Siemens’ Chief Technology Officer and Chief Strategy Officer Peter Koerte during a meeting with Vietnamese Prime Minister Pham Minh Chinh on the sidelines of the World Economic Forum’s 16th Annual Meeting of the New Champions in Tianjin, China.
With operations in industry, infrastructure, transportation, and healthcare, Siemens reported revenues of EUR75.9 billion (US$89 billion) last year and has maintained a presence in Vietnam since 1993 through offices in Hanoi, Da Nang, and Ho Chi Minh City, as well as a manufacturing facility in Binh Duong Province.
Prime Minister Chinh welcomed Siemens’ interest, particularly in the ambitious 1,541-km North-South high-speed rail project, which is expected to cost US$67 billion and connect Hanoi with Ho Chi Minh City, passing through 20 provinces and cities. The project received parliamentary approval in November 2024.
Alongside Siemens, several foreign and domestic companies have shown intent to participate, including VinSpeed (founded by Pham Nhat Vuong) and automaker Thaco.
Parliament Approves Vietnam’s North-South Highspeed Railway construction
September 26th 2024 – Recently, Vietnam’s North-South Highspeed Railway construction has been approved. This railway will run from Hanoi in the North and Hochi Minh City in the southern part of the country.
This announcement was made on Saturday by the Vietnamese government. According to the government of Vietnam, it revealed that it hopes this much needed railway project.
The Project to be a Game changer on Vietnam’s Transport Sector
This is set to raise the reputation of Vietnam among the potential foreign investors. This railway project is also expected to cut significantly the current travel time by railway from 30 hours to a remarkable 5 hours.
The Deputy minister of transport in the country stated that studies had highlighted the essence for quicker alternatives on the north-south corridor. “This railway project is key for restructuring transport in the country. It will serve as a stepping stone for Vietnam’s leap to growth,” he added.
In September Politburo reached an agreement to seek opinions from the Party Central Committee. This was regarding the investment plan for a north-south high-speed railway before it was submitted to the National Assembly, the 1,500 kilometres Vietnam’s North-South Highspeed Railway.
As revealed by a pre-feasibility study report, the country’s Ministry of Transport presented a proposal to investing in a high-speed railway. The railway would have a design speed of 350 kph, a total length of 1,541 kilometers, double tracks with a gauge of 1,435 mm.
Vietnam’s Commission for the State Management Capital (CMSC), extended its invitation to the biggest Chinese contractor, China State Construction Engineering Corporation (CSCEC) to build this mega project. According to Vietnam, the involvement of the Chinese contractor in this crucial project would promote the establishment of a community shared future between China and Vietnam. Additionally, it was also noted that the CSCEC involvement in this project was based on its long history involvement in other Vietnam’s projects.
Inviting CSCEC to implement this project is termed as quite strategic because Vietnam intends to depend mainly on domestic supply chains and project teams.
Vietnam’s North-South Highspeed Railway Project Cost
This mega project is expected to go at a total investment of approximately US$67.34
billion. This electrified railway project will entail a total of 23 passenger stations, as well as 5 freight stations that will be connected to key cargo hubs.
The railway route will run from Ngoc Hoi station in Hanoi and pass through 20 provinces and cities, and finally end at Thu Thiem station in Ho Chi Minh City. Furthermore, according to consultants’ calculations, with a speed of 350 kph, the railway is expected to attract approximately 12.5% more passengers than with a speed of 250 kph and cost about 8-9% more to build.
Regarding the implementation timeline, the ministry has set up plans to present the investment policy to the legislature in October. In 2025-2026, a bidding process will take place. This will be aimed to select international consultants, and surveys and preparations for a pre-feasibility study report will be executed.
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Land clearance will begin by 2027, followed by construction bidding and ground-breaking for the Hanoi–Vinh and Nha Trang–Ho Chi Minh City sections of the railroad. Construction works for the Vinh–Nha Trang section is expected to kick off in
the fiscal year 2028-2029, with the aim of completing the whole route by 2035.
Significance of the Project
According to the Politburo, the mega railway project aims to meet the growing transport
demand in the region. This is in line with the Party’s policies and orientations for transport
infrastructure investment. The government has high hopes on the project boosting the country’s general infrastructure and spearheading growth.
Moreover the high-speed railway foreseen to foster and promote general regional and
inter-regional connectivity. Furthermore, it will generate economic spillover effects and open up new economic development spaces in the country. Additionally, it will be of great help in restructuring urban areas. This will diversify economic sectors, thereby generally enhancing the economy’s competitiveness.
Lastly, the project is poised to drive the economic growth in the country. The railway will be supporting industries therefore promoting sustainable, modern, and eco-friendly modes of transport. This will help in reducing traffic accidents. Moreover, it would mitigate environmental pollution and adapt to climate change while ensuring national defense-security.
Generally, the country’s infrastructure is considered to be quite poor. Vietnam’s road network is also considered to be quite poor. Additionally, it also has an underdeveloped railway network.
Vietnam’s North-South high-speed railway Project Factsheet
Name: Vietnam’s North-South Highspeed Railway
Location: The line would begin in Lạng Sơn and end in Cà Mau. This will be connecting the two most urbanized areas in the country: Hanoi in the North, and Ho Chi Minh City in the South.
Cost: Approximately $67.34 billion
Length: 1,541 kilometers
Completion date: By 2035
Number of stations: 28 stations (23 passenger stations and 5 cargo stations)
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