The nation’s biggest conglomerate, Vingroup, said it had submitted a proposal to build the country’s multi-billion-dollar high-speed railway from Hanoi to Ho Chi Minh City, with state media reporting the government had welcomed the plan.
The project – which was slated to cost US$67bil when it was approved in November – is a much-needed boost to infrastructure that is expected to drive growth and enhance Vietnam’s reputation among foreign investors.
The line will stretch more than 1,500km from the capital in the north, to the country’s business hub in the south, and reduce the current journey time by rail from 30 hours to around five.
Vingroup confirmed yesterday that they had submitted a proposal to the government to build the line.
In a press statement, Vinspeed, a newly established company as part of the Vingroup empire, said the project would cost US$61bil (RM261.2bil), and would start in December and be finished by 2030 – five years ahead of the schedule set out last year.
Following a meeting on May 12, various ministries and agencies largely welcomed and supported Vingroup’s proposal, according to state-controlled newspaper Tuoi Tre.
Vietnam has one of the lowest expressway densities in the region, although the country is pushing to expand it, and road transport costs are among the highest.
The country has been an increasingly favoured destination for foreign businesses looking for an alternative to China, but low-quality infrastructure is seen as holding back surging investment. — AFP
