If the Government of Vietnam were to spend US$67 billion on the proposed North-South high-speed railway, as opposed to funding the project through private investment, it could take up to 140 years to recover the initial capital, Minister of Construction, Tran Hong Minh, has said and Thanh Nien has reported→view source.
Other points made by the Minister include:
- Typical railway project timeline: 5 years per project, with 1 year for investment policy approval and 2-3 years for design.
- Consulting costs: Estimated VND 100 billion for initial steps (project establishment, site clearance, survey), though current reporting lacks detail.
- Land use impact: Building high-value urban zones around the railway would make the investment more viable, aka Transit-Oriented Development (TOD).
- Private investment: A revised draft Law on Railways includes mechanisms to attract private capital and reduce state budget burden.
The data underscores the financial challenges of funding Vietnam’s high-speed rail solely through public investment, prompting a push for stronger private sector involvement and more effective land use strategies.