The four projects require a combined capital of over VND 445 trillion (approximately USD 17 billion). All are structured under the public-private partnership (PPP) model, with individual investment thresholds starting from nearly VND 25 trillion.
The projects include Bien Hoa – Vung Tau route; Ho Chi Minh City – Can Tho – Ca Mau route, Mu Gia – Vung Ang route, and Thap Cham – Da Lat route.
According to the Ministry of Construction, all the four projects align with national railway planning, transport sector development strategies, and the government policy of mobilizing non-budget capital for infrastructure development.
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Ben Thanh - Suoi Tien Metro Line No.1 in Ho Chi Minh City |
Nguyen Anh Dung, Deputy Director of the Ministry of Construction's Department of Planning and Finance, said that focusing on railways aims to build a modern, high-capacity transport system, thus lowering logistics costs and improving regional links between key economic hubs, deep-water seaports, international border gates, and logistic hubs.
Dung added that prioritizing railway infrastructure helps shift transport volume away from roads, reducing traffic congestion and road accidents. The initiative also aligns with Viet Nam's green growth targets and its commitment to achieving net-zero carbon emissions.
Explaining the decision to prioritize railways over other transport sub-sectors, Dung noted that maritime and inland waterway projects are largely decentralized to local authorities, while national highway networks rely primarily on public funding or domestic private capital. Air transport remains subject to a strict 30% foreign ownership cap due to national security regulations.
However, attracting foreign investors to railway projects presents distinct hurdles. Infrastructure development projects in this sector require immense capital outlay and long payback periods, while financial returns remain relatively low. Furthermore, existing PPP risk-sharing mechanisms have not proven sufficiently attractive to global capital.
Of the nine major infrastructure projects promoted in the 2021-2025 foreign investment portfolio, several road projects shifted to public investment or domestic private developers, while others saw limited foreign engagement.
To address these bottlenecks, Tran Chung, Chairman of the Viet Nam Association of Road Traffic Investors (VARSI), emphasized the need to refine existing policies. He urged authorities to enhance risk-sharing provisions, clarify state support mechanisms, and ensure robust project feasibility studies prior to international market roadshows.
Source: VNA