Vingroup and Thaco Group Declare Participation in Vietnam North-South High-Speed Rail Project, Proposing Over 61 Billion Dollar Investment

【Hanoi (Vietnam) = Bu Thuy Tien Correspondent】It has been reported that Thaco (THACO) Group, a partner of Hyundai-Kia in Vietnam, recently submitted a document to the Vietnamese Prime Minister proposing an investment of over 61 billion dollars in the North-South High-Speed Rail Project. As a result, with the addition of Thaco Group to the Vingroup in the Vietnam North-South High-Speed Rail Project, the bidding competition has become more complex. 
According to local sources on the 27th, Tran Ba Duong, chairman of Thaco Group, submitted an investment proposal for the North-South High-Speed Rail Project to the government on the 26th. Thaco proposed a total project cost of approximately 61.35 billion dollars (84.2335 trillion won), with land compensation being a separate independent project implemented by the government, thus not included in the total project cost.
According to the investment plan submitted by Thaco, Thaco will cover approximately 20% of the total project cost, about 12.27 billion dollars (16.8467 trillion won), with its own capital and domestic financing, and plans to borrow the remaining 80%, about 49.08 billion dollars (67.3966 trillion won), from domestic and international financial institutions. This funding is proposed to receive interest support for 30 years under government guarantee.
The project implementation period is 7 years, divided into two phases. The first phase involves the construction of the Ho Chi Minh City-Nha Trang and Hanoi-Ha Tinh sections over 5 years. These sections are evaluated to have high passenger and freight demand. The second phase targets the construction of the Ha Tinh-Nha Trang section, which requires additional research and technical solutions due to complex terrain, aiming for completion within 2 years.
Thaco proposed an operation period of 70 years for the project. During this period, the investor will propose a fare system under government approval and establish a financial plan considering project profitability and capital recovery period.
Thaco plans to apply international standard electric high-speed rail technology to the North-South High-Speed Rail line and promote technology transfer through cooperation with Germany, France, Japan, and Korea, along with workforce training. Additionally, they requested priority land allocation for integrated development according to the Transit-Oriented Development (TOD) model, exemption from import duties on equipment and vehicles not produced domestically, and the application of top-level investment incentives from the government.
Earlier, in a meeting with the Prime Minister in early February, Prime Minister Pham Minh Chinh proposed Thaco's participation in the production of high-speed rail vehicles and locomotives and technology transfer.
The North-South High-Speed Rail Project is a strategically promoted national key infrastructure project by the Vietnamese government, with a total length of 1,541 km, designed to operate at a speed of 350 km/h, passing through a total of 23 passenger stations and 5 freight stations. This project is being pursued in a public investment manner with a total project cost estimated at approximately 67 billion dollars.
Thaco Group is a leading private conglomerate in Vietnam, engaged in various fields such as automobile manufacturing, agriculture, logistics, construction, and distribution. It has strategic partnerships with Korean companies, including Hyundai, playing a crucial role in the development of the Vietnamese automobile industry.


vuutt@fnnews.com Bu Thuy Tien Correspondent