Billionaire Pham Nhat Vuong's VinSpeed ​​wants to invest in the North-South high-speed railway

Illustration of high-speed rail projects around the world

On May 14, VinSpeed ​​High-Speed ​​Railway Investment and Development Joint Stock Company announced that it had registered to invest in the North-South high-speed railway project. The company expects to start construction before December this year and operate the entire route before December 2030.

The project proposed by VinSpeed ​​has a total investment of more than 1.5 quadrillion VND (about 61.35 billion USD), excluding compensation and resettlement support costs. Of which, the enterprise commits to arrange 20% of the capital (about 312,330 billion VND, equivalent to 12.27 billion USD); the remaining part is proposed to be borrowed from the State with an interest rate of 0%, with a term of 35 years from the date of disbursement.

According to VinSpeed, this option helps reduce the burden on the budget, in line with the reality that most high-speed rail projects in the world have difficulty recovering capital or have to compensate for long-term losses.

The company is working with partners from China, Germany, and Japan to transfer technology and produce locomotives, carriages, and signal-control systems in Vietnam. At the same time, it will promote personnel training, master technology, and gradually form a domestic high-speed rail industry.

To repay the loan from the State, VinSpeed ​​plans to develop modern urban areas around the station following the TOD model (urban development associated with public transport), in coordination with Vingroup and Vinhomes. Areas surrounding the station that are currently sparsely populated and far from the center will receive synchronous investment, promoting infrastructure, improving the quality of life and supporting local economic development.

Ms. Dao Thuy Van - Deputy General Director of VinSpeed ​​shared that the company chose this time to boldly invest because it recognized the great support and expectations from the Party, the State and the people for the private sector. "We are committed to making every effort to implement the project, ensuring investment efficiency and timely capital repayment," she said.

VinSpeed ​​will also cooperate extensively with domestic enterprises to simultaneously build the entire route, gradually developing the high-speed rail industry, contributing to creating pride for the Vietnamese people.

The enterprise has a charter capital of 6,000 billion VND and is a new member in the ecosystem founded by billionaire Pham Nhat Vuong.

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TH (according to VnExpress)

Source: https://baohaiduong.vn/vinspeed-cua-ty-phu-pham-nhat-vuong-muon-dau-tu-duong-sat-cao-toc-bac-nam-411549.html