Public and Private Task Force on 100 Trillion Won Vietnam High-Speed Rail Bid Takes Shape [Vietnam High-Speed Rail Bid Race]

The Ministry of Land, Infrastructure and Transport (MOLIT) said on the 19th that it has formed a dedicated task force to win the bid for Vietnam’s North–South express railway project and is moving ahead with the effort by bringing together the government, public institutions and the private sector as a single team. The government is mounting an all-out response to target what would be Vietnam’s largest infrastructure project ever, with a price tag of 100 trillion won.
According to a Financial News review on the 26th, MOLIT has set up a North–South express railway task force involving public institutions such as Korea Railroad Corporation (KORAIL), Korea National Railway, and Korea Overseas Infrastructure & Urban Development Corporation (KIND), as well as Hyundai Rotem Company and several design firms. The task force is discussing bidding strategies. It is holding meetings on an ad hoc basis to share project information and consider participating from the feasibility study stage, which is expected to be tendered first.
The North–South express railway project is a high-speed rail construction plan linking Hanoi and Ho Chi Minh City over a total distance of about 1,540 kilometers. With an estimated cost of $67 billion, or about 98.9925 trillion won, it is Vietnam’s largest infrastructure project.
The task force was created as a preemptive response to Vietnam’s renewed push to advance the project. In particular, after the visit to Korea by To Lam, then general secretary and state president of the Communist Party of Vietnam (CPV), in August last year, discussions on rail cooperation between the two countries gained momentum, increasing the need for a government-level response.
President Lee Jae Myung also threw his support behind the project during his state visit to Vietnam from the 21st to the 24th, directly asking for Korean companies to be included in major infrastructure projects, including the North–South express railway, through summit diplomacy. Hyundai Rotem’s winning of the Ho Chi Minh City Metro project during the president’s visit was also seen as a positive development, as it expanded the company’s foothold in Vietnam’s rail market. Industry observers say this could become a springboard for future entry into the high-speed rail project.
The business environment is also becoming more favorable for South Korea. Vingroup, often called “Vietnam’s Samsung” and initially expected to bid for the North–South express railway project, abruptly withdrew in December last year, effectively resetting the project’s development structure. Inside Vietnam, authorities had considered a model centered on domestic companies, but the plan reportedly ran into practical constraints, including financing.
The bidding race, however, is expected to be difficult. While the Vietnamese government has set a completion target for 2035, major countries including China, Japan and France are also signaling their intention to participate, creating a multilateral competition. China, in particular, is showing strong interest. At a summit in Beijing on the 15th, Chinese President Xi Jinping and To Lam, then general secretary and state president, emphasized rail cooperation between the two countries.
An industry official said, "The project is still before the main contract tender, so a feasibility study is likely to come first." The official added, "The key will be to enter from the early stages through the task force and secure the project structure before others do." The official also noted, "While competing countries often approach the project through individual companies, Korea has a 'national one-team' system in which the government, public institutions and the private sector move together. That tends to be viewed favorably by the client because it improves project stability and execution capability."
going@fnnews.com Reporter