How do Vietnam’s proposed high-speed rail fares compare with Asian peers?

According to a pre-feasibility study for the North-South high-speed railway between Hanoi and Ho Chi Minh City, which will operate at 350 kph, the first class fare will be VND6.9 million (US$280), while second and third class tickets will cost VND2.9 million and VND1.7 million.

Given the route’s length of 1,541 kilometers, the average fares are expected to be $0.18 per kilometer for first class, $0.07 for second class and $0.04 for third class.

The report said the proposed rates are not too different from those in countries such as China, Japan and Indonesia.

Fares in China, which ranks first in the world for high-speed rail with 46,000 kilometers in operation as of September, are indeed close to those suggested for Vietnam.

The average business class fare for the 1,318-kilometer Shanghai-Beijing route, one of the busiest high-speed rail routes in the country, is 2,318 yuan ($330) while first class and second class cost 1,035 and 626 yuan.

These translate to $0.25 for business class, $0.11 for first class and $0.07 per kilometer for second class.

The Tohoku Shinkansen in Japan, which introduced the world’s first high-speed rail service in 1964, is that country’s longest high-speed route at 674 kilometers, connecting the cities of Tokyo and Aomori.

It too has three categories of tickets, with the most expensive one, the GranClass, costing 28,780 yen (US$200) and the two tiers below it costing 23,540 and 17,470 yen.

These are equivalent to $0.3 per kilometer for the GranClass, $0.24 for first class and $0.18 for second class.

Indonesia’s Whoosh, which began operation last October, is the first high-speed rail line in Southeast Asia.

A business class ticket on it costs 600,000 rupiah (US$39.4) and the first class fare is 450,000 rupiah.

There is a dynamic pricing model for the cheapest tier, called Premium Economy Class, which has fares ranging from 150,000 to 250,000 rupiah.

The route between Jakarta and Bandung, the country’s two largest cities, is 142 kilometers long, meaning a business class ticket costs $0.28 per kilometer while the two lower classes cost $0.2 and $0.09.

While the prices in these countries are higher than Vietnam’s expected fares, several support policies are in place, such as discounts for the elderly, children and large groups of passengers.

In Japan, tickets are free for children under six and half-priced for kids aged between six and 12.