Vietnam to build north-south high-speed railway without foreign loans or technology

Vietnam plans to develop its north-south high-speed railway using domestic funds and technology, aiming to reduce dependence on foreign loans and ensure better control over construction, technology transfer, and long-term operations, said a Transport Ministry official.

Nguyen Danh Huy, Deputy Minister of Transport, said at a press briefing on Tuesday that the high-speed rail project will be primarily funded by the state budget, minimizing the need for foreign technology transfers.

Huy explained that the ministry has been researching the project for 18 years, sending several delegations to learn from other countries’ experiences.

The project is estimated to cost VND1.713 trillion (US$67.34 billion), with funding sourced mainly from the central budget, government bonds, contributions from localities, and low-interest loans.

« With a spirit of independence and self-reliance, the Politburo has decided that we will not depend on foreign loans, as borrowing from any country often comes with strings attached, » Huy said.

Huy added that while foreign loans typically come with conditions, any necessary loans will be minimal and must include provisions for technology transfer to Vietnam. The selection of high-speed rail technology will be based on both cost and the potential for domestic technology acquisition.

Foreign contractors, if involved, must utilize domestically produced goods and services, allowing local companies to contribute to the project’s construction, which is valued at $34 billion. Vietnam’s construction industry is capable of handling roads, bridges, tunnels, and cable-stayed bridges, positioning it well for participation, he said.

According to the transport ministry, with current domestic capabilities and the potential for technology localization, Vietnam can feasibly master high-speed rail technology for speeds of 250 kph, 300 kph, and 350 kph. Studies indicate that with technology transfer and appropriate policies, Vietnam could achieve expertise in construction, operations, maintenance, and eventually localize the production of replacement parts.

Regarding speed, the ministry noted that 250 kph technology was developed about 50 years ago and was standard until 25 years ago, making it suitable for short and medium distances. However, the global trend for long-distance routes over 800 km, such as Vietnam’s north-south route, is now 350 kph, which is more suitable for high population density areas.

Countries with medium to long routes exceeding 800 km often opt for 350 kph. In China, experts have suggested that upgrading a 250 kph railway to 350 kph is challenging. Russia, for example, is constructing a 360 kph line between Moscow and St. Petersburg rather than upgrading its existing 160 kph line.

Consultants estimate that on Vietnam’s north-south railway, linking Hanoi and Ho Chi Minh City, a 350 kph line could attract 12.5% more passengers compared to a 250 kph line. Although building a 350 kph line costs 8-9% more, upgrading from 250 kph later would be difficult.

« Designing the railway for 350 kph is more appealing and efficient, and is likely to attract more passengers than a 250 kph design, despite higher infrastructure costs, » Huy said.

The project’s timeline includes selecting international consultants and conducting feasibility studies by 2025-2026. Land clearance and contractor selection for the Hanoi-Vinh and Nha Trang-Ho Chi Minh City sections are expected to start by the end of 2027. Work on the Vinh-Da Nang and Da Nang-Nha Trang sections is planned for 2028-2029, with the entire line scheduled for completion by the end of 2035.

Huy acknowledged that infrastructure projects often face delays due to land clearance issues. However, the north-south high-speed railway is a top priority with strong political backing, and both domestic and international resources will be mobilized to ensure timely completion.

Vu Hong Phuong, Director of the Railway Project Management Board, emphasized that the project’s national significance requires special policies to meet the 2035 completion goal.

« We will propose special policies to accelerate land clearance, resettlement, and technical infrastructure, » Phuong said.

The north-south high-speed railway will feature a double track with a 1,435 mm gauge, electrified for a design speed of 350 kph and a load capacity of 22.5 tons per axle. The 1,541 km line will include 23 passenger stations and five freight stations, serving both passengers and, when needed, freight transportation. The current north-south railway will continue to handle freight and short-distance passenger travel.

This project marks a shift from earlier plans, which envisioned the high-speed railway as passenger-only with 14 stations and no freight terminals.

The project is expected to be reviewed for investment approval during the 15th National Assembly’s eighth session, starting Oct. 20.

By Doan Loan – VnExpress.net –  October 1, 2024