Vingroup withdraws bid as Vietnam weighs high-speed rail plan
Vietnam’s biggest conglomerate, Vingroup withdraws bid for the country’s $67-billion railway project Vietnam is planning: the North–South high-speed railway project linking Hanoi and Ho Chi Minh City, according to Reuters. The company said the move will let it concentrate on other initiatives.
Vingroup said the registration it submitted in May was later revisited after a reassessment of resources, particularly after it was awarded major national projects. Those include an Olympic-standard stadium and rail lines connecting key locations, the company added.
Investors sold off the stock after the announcement. Shares of Vingroup and its units fell, with developers Vinhomes and Vincom Retail down 7%. Hospitality firm Vinpearl slipped 3%, while the benchmark index dropped 2.24%.
Vingroup withdraws bid after May financing proposal drew scrutiny
The May offer was filed by Vinspeed, a subsidiary founded by Vingroup Chairman Pham Nhat Vuong. In its Vinspeed subsidiary bid proposal, the company targeted the 958-mile (1,540-km) rail corridor designed as the Hanoi–Ho Chi Minh City rail link—part of the broader project covered by Railway Supply. Vinspeed said it would fund 20% of the project itself and seek the remaining 80% through a zero-interest state-funded loan 35 years, a structure also outlined by VnExpress International.
Vietnam’s central bank raised concerns about the plan, pointing to Vingroup’s high leverage and limited experience in rail infrastructure. It warned that the loan request and the guarantees involved could create risks for banking stability. A May 19 opinion reviewed by Reuters said the proposal would require “special state guarantees.”
The finance ministry also questioned the structure, saying the zero-interest terms and a 30-year debt repayment schedule—servicing only at maturity—were effectively equivalent to a state subsidy that could affect Vietnam’s credit ratings.
Other contenders and the January decision timeline
Beyond Vingroup, other investors have shown interest in the high-speed rail project, including auto industry company THACO, Vietnam Railways and Vietnam Investment and Development Group.
Vingroup said its withdrawal would not impede the project’s progress and would allow the company to focus on delivering other large-scale initiatives. The government has said the winner of the North–South railway will be announced in January.
Railway.supply – December 25, 2025