The Vietnamese government needs to act as both an institutional architect and a risk guarantor, creating a stable and attractive environment for private investors to participate in high-speed rail development, Associate Prof Nguyen Hong Thai, Vice Chair of the Vietnam Railway Economics and Transport Association and Head of the Transport-Economics Faculty at the University of Transport and Communications (UTC), has said.

Associate Professor Thai spoke on August 20 at the International Conference on Modern Technology in High-Speed Rail Design, Construction, Operation, and Exploitation.

UTC Rector and Associate Prof Nguyen Van Hung said the conference gathered 200 delegates with 24 scientific reports, including experts from countries with advanced rail industries like France, South Korea and China.

He said the presentations resulted from research by UTC scientists and partners in the Network of Excellence Centers for 4.0 Industry in transport technology and smart infrastructure, led by UTC.

Associate Prof Thai noted that the North-South High-Speed Rail (HSR) project is a strategic infrastructure initiative with significant importance for Vietnam.

With its huge investment capital, complex technical requirements and management challenges, mobilizing private resources is essential to reduce budget burdens, enhance management efficiency, and drive development.

Thai said that experiences from countries with developed high-speed rail systems, such as Japan, South Korea, China, Germany, and France, offer valuable suggestions for Vietnam.

In Japan, when the Shinkansen began operation in 1964, success was driven by centralized management, separation of infrastructure development and operations, and integration with transit-oriented urban development (TOD). 

While the government sets strategic direction, operations follow market mechanisms, leveraging additional revenue from commercial services and real estate around stations.

In South Korea, the government implements the PPP model with the SRT (super rapid train) project. The state gave support in land clearance and handled partial investment, while private enterprises are in charge of operations, collect fees, and share risks under transparent contracts.

In China, the majority of funding came from public investment, enabling the rapid construction of the world’s largest high-speed rail network (47,000 km by 2024).

However, China also encourages private participation in vehicle manufacturing, EPC contracts, and operations of local lines. This demonstrates the state’s strong leadership in the initial phase, followed by expanded private sector involvement, according to Thai.

In Germany, emphasis is placed on social and environmental impact assessments before project approval, with financial transparency and competition among private operators to enhance service quality.

In France, the government mainly funds infrastructure, while the private sector participates in EPC, BT, and operations. Since 2021, France has opened the market to competition in rail operations and encouraged private involvement in vehicle manufacturing, maintenance, and station-related urban services.

Thai suggested that Vietnam could adopt similar approaches:

From Japan: prioritizing safety, reliability, and TOD development around stations to generate additional revenue sources.

From South Korea: adopting a PPP model with clearly defined risk-sharing mechanisms to attract private investment.

From China: pursuing a hybrid approach: the state injects money in rail development in the first period, and then attracts public investment in the next phase.

From Germany and France: combining public investment with private operation under a transparent competitive framework to improve service quality.

Thai said the Vietnamese government needs to serve as both a policy enabler and a risk guarantor, ensuring a stable and attractive environment for private investors.

“International experience shows that if the government takes the lead in planning, provides a clear legal framework, and ensures reasonable risk-sharing mechanisms, Vietnam can successfully attract private investors. This is not just about mobilizing capital, but also an opportunity to develop supporting industries, improve governance capacity, and realize the goal of modernizing infrastructure and sustainable socio-economic development,” Thai said.

In an article published on VietNamNet in early June 2025, Associate Prof Dr Tran Le Hung proposed several key recommendations:

First, develop a comprehensive national HSR network plan. Second, establish a unified regulatory framework for HSR development. Vietnam currently has some standards for HSR, mainly focused on infrastructure and civil works. However, HSR systems are highly interdisciplinary and require a synchronized approach across multiple technical fields. Third, form a high-speed rail expert network. Fourth, enhance the role of private corporations and enterprises.

N. Huyen