Vingroup and Truong Hai Group Corporation (Thaco) have entered bids to build the more than 1,500km (930-mile) North–South high-speed rail line. But both are seeking substantial state support – either in the form of massive interest-free loans or government-backed financing.
The proposals have raised questions about the potential for cost overruns and the risk of Vietnamese taxpayers ultimately footing the bill.
Originally proposed in 2010, the high-speed rail project was rejected by the National Assembly at the time due to its prohibitive cost.
The proposals, submitted last month, followed Communist Party chief To Lam’s pledge to boost the country’s private sector amid intensifying regional competition for large-scale infrastructure contracts – including from Chinese state-backed giants that dominate high-speed rail development across the Mekong region.
