Vietnam on rails: high-speed rail creates millions of jobs!

Vietnam on rails: high-speed rail creates millions of jobs!

Vietnam is poised for significant progress in the development of its infrastructure. Experts see investments in the north-south high-speed railway as a crucial opportunity to position Vietnam as a new industrial pillar. This railway line is intended not only to improve the efficiency of passenger transport, but also to promote a complex ecosystem that includes mechanics, materials, electronics and IT. According to a report by Vietnam.vn The high-speed rail construction market is estimated at $33.5 billion.

Dr. Nguyen Van Linh has described high-speed trains as “complex industrial tugs” that offer huge potential for job creation. This could create millions of direct and indirect jobs in Vietnam and restructure the industry by significantly reducing logistics costs - from 16-20% of GDP to under 10%.

Vingroup and the high-speed rail project

Vingroup, Vietnam's largest conglomerate, submitted a proposal on May 16 to build a high-speed railway from Hanoi to Ho Chi Minh City. Loud Channel News Asia The government welcomed the plan, which was initially approved in November and is estimated to cost $67 billion.

The planned rail line will cover a distance of over 1,500 km and reduce travel time from the current 30 hours to around five hours. Vingroup plans to self-mobilize 20% of the total capitalization of $61 billion, which amounts to $12.27 billion. The schedule calls for work to begin in December and be completed by 2030, five years earlier than originally planned.

Financing and economic impact

The proposal includes a request for an interest-free loan from the state for the remaining 80% of the financing, apart from the costs of land clearance. Dao Thuy Van, deputy director of Vinspeed, reiterated the commitment to advance the project and repay the loans on time.

The high-speed rail is expected to not only revolutionize passenger transport, but also reshape the logistics industry and improve connections to seaports, airports and industrial parks. This could help Vietnam build a national strategic value chain in high-speed rail, similar to countries with developed economies such as Japan and South Korea.

Experts emphasize the need for high-performing companies and look to VinFast's success as an example of the development of domestic industries. Shifting the work structure from agriculture to industry and the service sector could also be achievable in Vietnam with the right investment and planning policies.

The omens are favorable and developments in high-speed rail could lead Vietnam onto a dynamic growth path.