Vietnam on Nov. 30 approved the construction of a high-speed railway connecting the capital Hanoi in the north to Ho Chi Minh City in the south at an estimated cost of $67 billion. The decision was approved by Vietnam’s National Assembly.
The railway, which will stretch more than 1,500 km between the Vietnamese capital and the financial capital in the south, will reduce the current journey time by rail from 30 hours to around five, according to an AP report. New trains are expected to travel at a top speed of 350 km/h.
Chinese industry insiders and analysts on Dec. 1 said Chinese companies could be a strong bidder in the project, given China’s comparative advantage in both the expertise and cost in the high-speed railway construction, according to Global Times.
Construction is expected to begin in 2027 and Vietnam hopes that the first trains will start operating by 2035.
Global Times notes that China and Japan are competitors in building high-speed rail, offering their own high-speed railway technologies.
This rail line will be part of the Trans-Asian Railway (TAR) network in Southeast Asia, Global Times notes, “which is key to ensuring global supply chain stability amid rising geopolitical tensions.” Vietnam sits at the TAR’s eastern line.
