THACO proposed to invest in the North-South high-speed railway project

Private enterprises want to participate in the construction of large infrastructure projects

In an official dispatch sent to Prime Minister Pham Minh Chinh, Mr. Tran Ba Duong, Chairman of the Board of Directors of Truong Hai Group, said that the Politburo recently issued Resolution No. 68-NQ/TW on private economic development and then the National Assembly also issued Resolution No. 198/2025/QH15 on a number of special mechanisms and policies for private economic development, which has encouraged the private economic sector to participate with the State in strategic areas and important national projects (such as high-speed railways, urban railways, key industries, etc.).

The changes and breakthroughs in the mechanisms and policies of the Party and State have elevated private enterprises to enter the transformation of national construction in a new era - the era of development, prosperity and strength of the Vietnamese people.

THACO INDUSTRIES receives transfer of many advanced technologies, invests in modern machinery and equipment.

As a multi-industry corporation, after thoroughly researching the North-South High-Speed Railway Project with the goal of doing the best and making the most practical and highest contribution to the country, THACO decided to propose investing in the North-South High-Speed Railway Project, which was approved by the National Assembly in Resolution No. 172/2024/QH15.

Accordingly, THACO will prepare an investment project and have the competent authority approve the investment policy according to Investment Law No. 61/2020/QH14 using its own capital and other legally mobilized capital sources.

In its proposal, THACO said it would apply rail technology, electrification; ensure modernity, international standards on the principle: THACO and domestic enterprises cooperate to receive reasonable technology transfer from the world's leading experienced partners in Europe (Germany, France, ...); Asia (Japan, Korea, ...).

Large-sized stamping equipment is equipped at THACO INDUSTRIES.

At the same time, organize training for personnel to master technology in infrastructure construction; production of locomotives and carriages; signal and control systems; management and operation of high-speed railway systems to proactively form the railway industry and through this project develop fundamental industries for the country such as: heavy industry (metallurgy, mechanics); digital industry,... In which, priority is given to coordination and joint ventures, cooperation with domestic enterprises and corporations for items and tasks that can be met domestically (in accordance with Clause 8, Article 3 of Resolution No. 172/2024/QH15 of the National Assembly).

The total investment (including compensation, support and resettlement costs) of the Project is VND 1,713,548 billion (one million seven hundred and thirteen thousand, five hundred and forty eight billion VND), equivalent to approximately USD 67.34 billion.

Together we grow

THACO also proposed to invest in the Project with a total investment capital of about 1,562,000 billion VND (One million five hundred and sixty two thousand billion VND), equivalent to about 61.35 billion USD.

In which, the site clearance item is an independent project implemented by the State and is not included in the total investment capital of the project.

To carry out this investment, THACO will use its own capital and other legally mobilized capital sources.

Specifically, the capital portion corresponding to 20% of the total investment, equivalent to about 12.27 billion USD, is THACO's capital contribution (including equity and other legally mobilized capital) through the issuance of shares to increase capital for THACO and its member corporations, while still ensuring that Mr. Tran Ba Duong and his family hold the controlling shares of THACO.

THACO Mechanical Industrial Park in Chu Lai.

At the same time, a project implementation company will be established and other domestic corporations and enterprises will be invited to contribute capital, in which THACO will hold controlling shares to jointly implement the project with the prerequisite of not transferring or assigning the project, capital contribution, or shares in the project implementation company to foreign countries.

The remaining 80% of the total investment capital, equivalent to about 49.08 billion USD, will be borrowed by the company from domestic and foreign credit institutions; the Government will guarantee and support all loan interest for a period of 30 years and the collateral is the entire project.

Also because of the special nature of the high-speed railway line, which requires high technology and engineering in metallurgy, mechanical engineering, construction, and especially integrated digital technology and control systems, security and safety factors during construction and operation management, THACO has proposed to divide the project implementation into 2 phases.

Accordingly, phase 1 will be completed and put into operation within 5 years with 2 segments from Ho Chi Minh City to Nha Trang and from Hanoi to Ha Tinh, after the State hands over the clean land. These are also 2 segments with large demand for passenger and cargo transportation to put into operation and exploitation.

In phase 2, the entire project will be completed in the next 2 years with the remaining segment from Ha Tinh station to Nha Trang station. Because this segment has steep terrain and complex geology, it requires time to research and find the most effective solution.

The proposal to complete the project in 07 years and divide the stages of the entire route is also to have time for domestic partners to study, learn, cooperate (joint venture, association) to receive technology transfer to participate in construction, production, installation and operation safely and achieve the highest efficiency for the project.

At the same time, there is enough time to form a railway industry, saving costs to reduce the total investment capital of the project to the lowest possible, thereby reducing travel costs (ticket prices) for people.

The investor also proposed the ticket price to be approved by the State Agency on the basis of ensuring the financial plan and payback period for the Project as prescribed. The proposed project operation period is 70 years, in accordance with the Investment Law.

In addition to the State separating the project into an independent project and carrying out compensation, support and resettlement to hand over clean land to the Investor to implement the project (according to Resolution No. 172/2024/QH15 of the National Assembly and the Railway Law 2017), the enterprise also requested to be given priority in allocating land funds to implement urban development projects according to the TOD (Transit Oriented Development) model.

At the same time, tax exemption is applied to goods (machinery, equipment, vehicles, etc.) that cannot be produced domestically according to the provisions of Point d, Clause 2, Article 6 of the 2017 Railway Law; all special mechanisms and policies, investment incentives according to Resolution No. 172/2024/QH15 of the National Assembly and investment incentives at the highest level, in accordance with current legal regulations.

Mr. Tran Ba Duong, Chairman of the Board of Directors of Truong Hai Group.

“We are also committed to developing TOD models in an exemplary manner at reasonable prices to meet the housing and living needs of the majority of Vietnamese people. In addition, due to the requirements of ensuring national safety and security, THACO proposes that the State will own some facilities and take on part of the management and operation work. In special cases due to national security reasons, THACO commits to handing over the State full authority to use the entire Project to serve the country,” said Mr. Tran Ba Duong, Chairman of THACO’s Board of Directors.

THACO also said that its member group THACO INDUSTRIES will act as a focal point, together with domestic enterprises, to receive the transfer and manufacture of locomotives, train cars, spare parts, machinery and equipment for the project and means of transport connecting to the North-South expressway.

The member group THADICO - DAI QUANG MINH will act as the focal point together with domestic enterprises receiving the transfer to implement investment - construction, project management, operation, maintenance, repair and maintenance of construction infrastructure; at the same time, invest and effectively exploit the land fund near the station according to the TOD model to form integrated urban areas.

THISO Group will act as a focal point, together with domestic enterprises, to invest, manage and operate social infrastructure (shopping mall system, Emart supermarket, schools, hospitals, parks, etc.) to serve the practical needs of the people and promote local socio-economic development.

THACO was established in 1997 in Vietnam, operating mainly in the field of automobile manufacturing and assembly. Up to now, after 28 years of establishment and development, THACO has become a multi-industry industrial group, with member corporations investing and operating in many fields, with more than 77,000 employees.
THACO's member corporations include: THACO AUTO (Automobiles); THACO AGRI (Agriculture); THACO INDUSTRIES (Mechanics and Supporting Industries); THILOGI (Transportation and Logistics); THADICO - DAI QUANG MINH (Construction Investment); and THISO (Trade and Services, with a system of Emart shopping centers and supermarkets nationwide).
The production and business activities of member corporations are organized on a large scale, managed throughout the value chain according to industrial methods, participating in the global value chain and digital transformation with a fast and appropriate roadmap.
THACO AUTO currently has more than 14,800 employees, including more than 2,000 engineers, has received technology transfer from the world's leading partners such as Germany, France, Japan, Korea, ..., self-researched and mastered many technologies to produce, assemble, export and trade all segments and types of cars (including self-designing and self-producing THACO brand trucks and buses with a localization rate of 70% and then cars in 2026)
THACO INDUSTRIES has more than 9,500 employees, including 2,700 engineers including 2,000 production engineers and 700 engineers in Research and Development (R&D); currently managing the R&D Center, mechanical complex, spare parts production complex and factories; has researched, developed and is self-sufficient in technology, manufacturing and fabricating many high-tech machinery, technical equipment, super-sized and super-heavy structures in Chu Lai Open Economic Zone (Quang Nam).
THACO INDUSTRIES products are supplied to international automobile manufacturers, FDI enterprises and exported to more than 20 markets worldwide. In the near future, the unit will deploy a 786-hectare specialized mechanical and supporting industrial park project in Binh Duong province.
THADICO - DAI QUANG MINH has 2,600 employees, including more than 1,000 engineers, architects, project managers, etc. with extensive experience in managing and investing in the construction of key national projects, such as airport projects, ports, traffic infrastructure projects, industrial parks, urban areas; has directly invested and managed large-scale traffic and technical infrastructure projects (Nongkhang Airport - Lao PDR, Ba Son Bridge, 4 main roads, Sala Urban Area in Thu Thiem New Urban Area and is currently preparing to start construction of the Dau Giay - Tan Phu expressway project).