Vietnam seeks ministry feedback on Pham Nhat Vuong company's $61B high-speed rail proposal

Deputy Prime Minister Tran Hong Ha has requested ministries to submit written feedback by May 19. The input will be used to compile a formal report for government leaders and the National Assembly.

VinSpeed, founded by Vingroup chairman and Vietnam’s richest man Pham Nhat Vuong, aims to break ground on the project before December 2025 and launch operations by December 2030.

In a statement on Thursday, the Government Office cited Deputy PM Ha’s conclusion saying that a Politburo resolution encourages greater private-sector participation in key national projects, including high-speed rail and other strategic sectors.

As such, most ministries have welcomed the proposal in principle. However, any shift in the investment model or application of special policy mechanisms must be reviewed by the appropriate authorities, including the National Assembly.

The Ministry of Construction has been tasked with leading the review process, consolidating feedback and drafting a resolution to pilot specific mechanisms for railway development. The draft must be submitted before May 22.

Other ministries, including Finance, Justice, Natural Resources and Environment, along with the State Bank of Vietnam, will assess the legal and financial feasibility of transitioning from public to private investment. The State Bank will specifically evaluate VinSpeed’s request to exclude the project's debt from Vingroup’s total outstanding loans.

All feedback must be submitted to the Ministry of Construction before May 19.

VinSpeed is expected to provide a detailed comparison between public and private investment models, demonstrating that its private-sector-led plan is more viable, efficient and timely. The company must also work with relevant authorities to finalize proposed special mechanisms for review and approval.

If approved, VinSpeed will be required to fully execute the project and lead the development of a broader industrial ecosystem around the high-speed rail sector.

According to the proposal, the project would cost over VND1.5 quadrillion ($61.35 billion), excluding compensation and resettlement. VinSpeed has pledged to cover 20% of the capital, around $12.27 billion, and proposes borrowing the remainder from the state at zero interest, with repayment over 35 years.