Vietnam urges railway overhaul ahead of US$67 billion high-speed project

Standing Deputy Prime Minister Pham Gia Tuc has called on Vietnam National Railways Group (VNR) to remove infrastructure constraints and overhaul management as Vietnam prepares major rail projects, including its US$67 billion North-South high-speed railway.

Speaking at a ceremony celebrating the railway sector’s 145th anniversary, Tuc said the existing North-South route still relies on a single track with a one-metre gauge. Rail carries just 0.12% of passenger traffic and 0.18% of freight nationwide, he noted.

Tuc linked the sector’s shortcomings to national logistics costs of between 14% and 16% of GDP. Rail has attracted only 3–5% of transport infrastructure investment in recent years, with maintenance absorbing most of that funding rather than network expansion.

The planned high-speed line spans 1,541 km. Other projects cited include the Lao Cai-Hanoi-Hai Phong railway, while Hanoi-Dong Dang and Ho Chi Minh City-Can Tho were identified as potential routes.

Tuc instructed VNR to begin workforce training two to three years before project timelines and retrain its 22,000 employees. The aim is for Vietnamese personnel to manage, operate and maintain new lines independently within three years of commercial launch. He also called for earlier safety-risk forecasting and cooperation with companies, universities and research institutes to develop technology and obtain technology transfers.

VNR was also asked to generate commercial value from its 312 stations through transit-oriented development and improve freight links with ports and industrial zones. Tuc urged the operator to adopt OECD corporate management standards, use digital twins to manage assets, and deliver assigned national projects within their schedules and budgets.