On October 29, the Government Portal hosted a discussion titled “High-Speed Rail: Opportunities and Challenges,” focusing on the timing and potential impact of this ambitious infrastructure project.

Deputy Minister of Transport Nguyen Danh Huy shared at the event that, based on forecasts of transport demand, now is the ideal time to launch the North-South high-speed railway to restructure Vietnam’s transport sector.

“Research shows that for distances over 1,000 kilometers, air travel is optimal, while distances under 1,000 kilometers favor rail transport. Today, with our economy valued at $430 billion and public debt at a manageable 37%, we are well-positioned to take on this project," Huy noted. "Technically, we’ve also decided on a speed of 350 km/h, focusing primarily on passenger capacity."

Deputy Minister of Planning and Investment Tran Quoc Phuong emphasized that the high-speed rail project has all the requirements for implementation. As one of the largest public investments in Vietnamese history, the project is anticipated to cost approximately $70 billion, affecting GDP growth throughout its construction phase.

“It is estimated that if the funding is deployed from now until 2035, it could raise GDP by around 0.97%, which is highly significant," Phuong explained.

"The construction will directly impact 7-8 sectors, such as construction, auxiliary industries (providing materials like sand, gravel, and steel), and supporting services like finance, urban development, and tourism. The project will also stimulate job creation and contribute to the growth of the transport sector.”

Upon completion, the high-speed railway will enhance Vietnam’s competitiveness, particularly by reducing logistics costs and boosting sectors reliant on rail connectivity.

Phan Duc Hieu, Standing Member of the National Assembly’s Economic Committee, also voiced his support for the project, highlighting its potential to add a fifth mode of transport and optimize Vietnam's overall transport system. By diversifying transport options, the railway will reduce transportation costs and better serve various customer needs, from passengers to freight.

A key question raised during the discussion was why the Ministry of Transport proposed a high-speed rail focused on passenger transport while still accommodating dual-use functions for defense, security, and freight transport if necessary.

Deputy Minister Nguyen Danh Huy clarified that the proposal for dual functionality stems from thorough research on each transport mode’s strengths.

"We forecasted transport demand along the North-South corridor, estimating around 18.2 million tons of freight and over 100 million passengers by 2050," Huy explained. "To meet these needs, we opted to utilize the existing rail infrastructure primarily for freight while shifting passenger transport to the high-speed rail. This maximizes capacity on both systems and addresses both civilian and defense needs."

N. Huyen