The government proposes that the high-speed railway begins in Hanoi (Ngoc Hoi Station) and ends in Ho Chi Minh City (Thu Thiem Station). With a total length of approximately 1,541 km, including 23 passenger stations and 5 freight stations, the high-speed railway is expected to traverse 20 provinces and cities.

The investment policy for the project has received unanimous agreement from the 13th Central Committee of the Communist Party, the Politburo, and the government, which emphasizes mobilizing all resources to expedite implementation as much as possible.

The government confirms that the chosen route has been agreed upon by all 20 provinces and cities through which the railway will pass, based on the principle of "the straightest route possible."

Regarding the investment form, the government proposes a public investment model using state budget funds. The preliminary total investment for the project is estimated at approximately 1.713 trillion VND (about $67.34 billion), with a payback period of approximately 33.61 years.

In discussions with VietNamNet, Associate Professor Hoang Van Cuong, a member of the Finance and Budget Committee of the National Assembly, stated that this is the largest project and therefore requires special mechanisms to ensure timely execution, technology mastery, and socio-economic development momentum.

The first goal is to establish a mechanism for concentrated capital allocation. Despite the project's large capital, it must be prioritized as number one, with no allowance for funding shortages during implementation.

Cuong also emphasized the need to mobilize the intellect and financial resources of domestic corporations to take ownership of the project, aiming for self-sufficiency during construction, operation, maintenance, and repair. When ownership is established, the project implementation process will be swift.

 Diverse legal funding sources to be mobilized

According to the proposal, the North-South high-speed railway has been under study for an extended period. Currently, transportation demand is rising sharply, with the economy expected to reach $430 billion in 2023, and public debt at a low level of about 37% of GDP. With the construction slated to begin in 2027, the economic scale is projected to reach $564 billion, alleviating investment resource concerns.

To complete the project by 2035, the government plans to allocate state budget funds over approximately 12 years, averaging around $5.6 billion per year, equivalent to about 16.2% of the mid-term investment plan for 2026-2030.

In the implementation phase, the government will mobilize a variety of legal funding sources and focus on utilizing domestic funds to avoid dependence on the conditions tied to ODA loans.

Should any donors offer low-cost, less restricted loans, the government will recommend that the competent authorities consider utilizing these funds.

The government asserts that the upcoming mid-term public investment plan can balance the project's investment without significantly impacting other national key projects. Financial indicators from the project's investment and land fund exploitation will enhance revenue sources, allowing for balanced financing to execute the North-South high-speed railway construction.

However, the government also points out that the Public Investment Law of 2019 stipulates that assessing the capacity to balance funding sources can only be conducted according to the five-year mid-term public investment plan, with a transition to the next phase not exceeding 20% of the previous mid-term investment plan.

Since the high-speed railway project spans three mid-term periods, establishing funding sources and balancing capacity remains undefined.

Therefore, the government proposes adding a special mechanism allowing the Prime Minister to decide on the use of government bond funds, ODA, preferential foreign loans, and other legal domestic sources.

The Prime Minister will decide to adjust the mid-term public investment plan and annually allocate central government budget funds among ministries, central agencies, and localities to arrange funding for the project, provided the total mid-term and annual capital approved by the National Assembly remains unchanged.

The government also suggests mechanisms that exempt the need for a capital balancing assessment and authorize the government to balance the funding proposal for each mid-term period, ensuring the project's timely execution.

N. Huyen - Thu Hang