North–South high-speed railway: A new growth engine for Vietnam’s economy

As Vietnam transforms into a modern industrial economy, transport infrastructure plays a decisive role in promoting growth, integration, and sustainability. Among the most ambitious projects, the North–South High-Speed Railway (HSR) is expected to be a game changer.
Spanning approximately 1,350 km from Hanoi to Ho Chi Minh City, the project aims not only to address the rising demand for passenger and freight transport but also to serve as a “dual engine” that accelerates industrial development, real estate, tourism, and logistics.

Strategic Importance of the North–South High-Speed Railway

Regional Connectivity – Shortening Distance

• • Designed speed 320 km/h, cutting travel time from 30 hours to just 5–6 hours.
  • The line will become a new transport artery, reducing pressure on roads and aviation, both of which are already overloaded.
  • Creates conditions for the rise of satellite cities, industrial clusters, and tourism hubs along the corridor.
    

Driving Economic Growth

According to Vietnam’s Ministry of Transport:

• • The project could generate hundreds of thousands of direct and indirect jobs.
  • Add 0.5–1% GDP annually, equivalent to billions of USD, through multiplier effects.
  • Enable the development of logistics centers and freight hubs, strengthening national competitiveness.

Attracting FDI and Advanced Technology

• • With an estimated cost of over USD 58 billion, the project will act as a magnet for global investors.
  • Vietnam will gain access to advanced construction and operation technologies from Japan, Europe, and China.
  • Local enterprises can enter global supply chains through technology transfer and joint ventures.

Global Trends in High-Speed Rail

• • Japan (Shinkansen): The world’s first HSR system, operating safely for over 50 years, setting a global benchmark.
  • China: The world’s largest HSR network with over 40,000 km, accounting for two-thirds of global HSR length and serving more than 2 billion passengers annually.
  • Europe: Cross-border HSR networks connect major economies, driving regional integration and competitiveness.

Vietnam can learn from these models to shorten development time, optimize costs, and ensure safety and efficiency.

Challenges in Implementation

Enormous Investment

• • Estimated cost: USD 58 billion.
  • Requires innovative financing mechanisms: state budget, PPP, ODA, and foreign investment.

See more: HCMC Metro – Challenges and Prospects 2030

Technology & Human Resources

• • Complex engineering for elevated viaducts, long tunnels, and advanced signaling systems.
  • Vietnam must train skilled engineers and workers, while partnering with global players for technology transfer.

See more: Safety & management of railway infrastructure operations

Land Acquisition & Resettlement

• • The line passes through dozens of provinces, affecting hundreds of thousands of households.
  • Transparent and fair compensation and resettlement policies are vital for social consensus.

Opportunities for Businesses and Investors

• • Construction & infrastructure contractors: bridges, tunnels, depots, and stations.
    
  • MEP & fire safety companies: international-standard safety and technical solutions.
  • Real estate & urban development: transit-oriented development (TOD) around stations.
  • Logistics providers: establishing freight hubs along the line, linked with seaports and industrial parks.

The North–South High-Speed Railway is more than just a transportation project – it is a strategic growth engine for Vietnam’s economy from 2025 to 2040. By reshaping connectivity, boosting industries, and attracting global investment, the HSR will become a symbol of modernization, integration, and sustainable development.

Businesses, investors, and policymakers must seize this opportunity to create breakthrough value for the nation’s future.