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Home World News Asia

Vietnam to build US$67 billion high-speed railway

November 30, 2024
in Asia
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Vietnam said on Saturday that it will build a US$67 billion high-speed railway from Hanoi to Ho Chi Minh City, in a much-needed boost to infrastructure that is expected to drive growth and enhance its reputation among foreign investors.

The railway, which will stretch more than 1,500 kilometres (930 miles) from the capital in the north to the country’s business hub in the south, will reduce the current journey time by rail from 30 hours to around five.

“The national assembly voted to approve … a resolution on investment policies for the high-speed railway project on the north-south axis,” said a statement on the National Assembly’s website.

Vietnam’s transport infrastructure is considered relatively weak, with a road network struggling to keep up with demand and an underdeveloped rail system.

The expressway density is one of the lowest in the region, although Vietnam is pushing to expand it, while road transport costs are among the highest.

The country is an increasingly favoured destination for foreign businesses looking for an alternative to China, but low-quality infrastructure is seen as holding back surging investment.

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