Ho Chi Minh City approves $3.9bn high-speed rail project, groundbreaking set for next week

The project aims to connect the city center with the coastal commune of Can Gio, advancing the city’s long-term transport and rail development plans while supporting socio-economic growth in the southern key economic zone and the broader southeast region.

The double-track railway will use the 1,435mm standard gauge and span more than 54km.

It is designed for speeds of up to 350 kph and an axle load of 17 metric tons.

Phase 1 includes Ben Thanh and Can Gio stations, while Phase 2, to be built when needed, adds four more, namely Tan Thuan, Tan My, Nha Be, and Binh Khanh.

The depot and the operations control center will both be located in Can Gio Commune.

The project’s preliminary investment cost is VND102.43 trillion (US$3.9 billion), excluding roughly VND12.784 trillion ($485 million) for land clearance, which will be funded separately by the state budget.

The concession period is set at 70 years from the date of the investment approval.

Construction and commissioning must be completed within 30 months from the land handover, allowing the line to begin operations in 2028, excluding the four stations in Phase 2.

The investor, a newly established company under Vietnam’s largest private conglomerate Vingroup, is required to fully secure its financing, ensure execution capacity, and finalize the total investment capital according to regulations.

The rail line will begin at 23/9 Park in Ben Thanh Ward and end at a 39-hectare site adjacent to the Can Gio sea reclamation urban area project.