This consistent viewpoint has been repeatedly affirmed by Prime Minister Pham Minh Chinh at various meetings and conferences. And for this "mega-project" to meet the schedule of commencement in 2027 and basic completion by 2035, it requires the development of special mechanisms and policies, innovation in governance and management, and a new approach to mobilizing resources for implementation. If the old methods are followed, it may not even be completed in 50 years.
Applying specific, special mechanisms.
In Conclusion No. 49-KL/TƯ dated February 28, 2023, the Politburo clearly defined the viewpoint: "The North-South high-speed railway is the backbone," and "railway transport plays a leading role in the North-South economic corridor, the main East-West transport corridors, and passenger transport in major cities." The national master plan for the period 2021-2030, with a vision to 2050, has prioritized the development of the North-South economic corridor to connect dynamic regions, economic corridors, and growth poles, creating a ripple effect and promoting socio-economic development nationwide.
Accordingly, this is the most important corridor in the country, connecting 20 localities, affecting approximately half of the country's population and 40% of industrial zones. In addition, this corridor is home to about 55% of major seaports, 67% of coastal economic zones, 3 out of 6 socio-economic regions, and contributes more than 50% of the country's GDP.
“With the motto ‘leading the way,’ wherever transportation goes, new development spaces will follow. Therefore, the high-speed railway line on the north-south axis is a breakthrough, creating an infrastructure foundation for the country to enter a new era – an era of national progress. We are well aware that this is a very large-scale and complex project. Realizing this dream is a long journey with many challenges, requiring high political determination; no matter how difficult, we must find a way to overcome them,” affirmed Deputy Minister of Construction Nguyen Danh Huy.
According to transportation experts, for this "mega-project," Phase 1 (2025-2027) involves preparing a feasibility study (FS) and overall technical design for the EPC general contractor bidding documents. The FS typically takes several years to prepare, and the related procedures are quite complex, potentially prolonging the process if streamlined. Therefore, experts recommend that authorities consider a direct contracting solution, while simultaneously conducting research and evaluation to shorten the preparation and approval process. The preparation of bidding documents for selecting the general contractor should also be carried out concurrently with the FS so that the selection of the EPC general contractor can begin immediately after the FS is approved.
According to Vu Hong Phuong, Director of the Railway Project Management Board (Ministry of Construction), the fact that the project's commencement and completion date is 10 years ahead of the initial schedule is a huge challenge, requiring the utmost determination of the entire political system in compensation and land clearance; preparing material sources; mobilizing resources from both international consultants and domestic contractors, etc. The pre-feasibility study report has proposed 19 specific and special mechanisms and policies under the authority of the National Assembly; and 5 specific and special mechanisms and policies under the authority of the Government to implement the project effectively and in the shortest time.
"For this project, a prerequisite for proactively managing the progress is having a cleared site before the project commences. The amended Public Investment Law allows for the separation of land clearance from the project, and the National Assembly has also agreed to implement resettlement and relocation of technical infrastructure beforehand, helping to shorten the land clearance time," Mr. Vu Hong Phuong affirmed.
An attractive "piece of the pie" for domestic contractors.
The North-South high-speed railway project has a total length of 1,541 km; starting at Ngoc Hoi station (Hanoi), ending at Thu Thiem station (Ho Chi Minh City), passing through 20 provinces and cities; it is a double-track electrified railway with a track gauge of 1,435 mm and a design speed of 350 km/hour. The planned structure includes 60% viaducts, 10% tunnels, and 30% earthwork, with an investment cost of approximately US$43.69 million/km; the total estimated investment is VND 1,713,548 billion (equivalent to approximately US$67.34 billion). Of this, land clearance accounts for $5.88 billion, construction and equipment $38.3 billion, and vehicles $4.34 billion,... A representative from the Railway Project Management Board stated that, from March to May 2025, the unit is expected to select a project management consultant through international bidding, then proceed with the next steps of the process; from February 2027, they will prepare the bidding documents, select the contractor, and strive to start construction in December 2027.
The project's construction value of approximately US$33.5 billion is considered an attractive "piece of the pie" for domestic businesses and contractors, but it also presents a major challenge as the financial capacity of participating contractors is insufficient, and they have no prior experience in similar projects. This is considered a "major battle" for construction contractors, requiring careful research and planning to maximize the absorption of capital and thereby enhance their business capabilities.
Businesses expressed their desire to split the project into two components: a construction component from the railway tracks downwards, including bridges, roads, and tunnels; and a mechanical technology component above the railway tracks, such as locomotives, rolling stock, and signaling systems. Regarding the construction component, businesses proposed a direct contracting mechanism and suggested removing the criterion of having previously completed 1-2 projects of a similar scale, as stipulated in the Bidding Law.
Currently, the number of domestic contractors with capital exceeding 1,000 billion VND can be counted on the fingers of one hand. Even when a bid requires financial capacity equivalent to only 10% of the contract value, no company can meet the requirement. Therefore, to allow domestic contractors to participate more easily in projects, a mechanism should be studied that allows members of a consortium to receive additional points for their financial capacity. Another issue of concern to many experts is the current loose collaboration among construction contractors, lacking strategic alliances and clear development directions. "Businesses need to collaborate and cooperate to develop and increase their capacity to participate in projects. If the collaboration is unsustainable and there is no adequate investment in technology, domestic businesses will lose on their own turf," warned Dr. Nguyen Duc Kien, former Head of the Prime Minister's Economic Advisory Group.
With appropriate technology transfer and the exceptionally large market size from the high-speed rail project, Vietnam is fully capable of mastering the construction industry, gradually becoming self-sufficient in manufacturing railway carriages, power supply, information and signaling systems, operation, maintenance, and the production of some replacement parts, etc.
According to the Ministry of Construction, investing in high-speed rail is a "boost" for the country's socio-economic development, evident in many aspects, including opening up new economic development opportunities and resources through the efficient exploitation of land. With its advantages of high-volume, fast, and convenient transport, the high-speed rail line on the north-south axis will shorten distances between localities and regions, contributing to the restructuring and redistribution of urban areas and populations, and reducing the pressure of overloaded infrastructure in cities, especially Hanoi and Ho Chi Minh City.
Box: According to the assessment of representatives of the Vietnam Mechanical Engineering Business Association, investing in high-speed railways is a prerequisite for developing the railway industry and supporting industries, contributing to the achievement of the country's industrialization and modernization goals.
Source: https://nhandan.vn/cong-trinh-bieu-tuong-cua-khat-vong-phat-trien-post874925.html
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