Railway infrastructure in Vietnam and development goals

25Feb2025

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In this section “Vietnam Briefing”, young researchers of B&Company will provide timely information of Vietnam’s industrial trends, consumer trends, and social movements.

This article is written in English and automatic translation is used for other language versions. Please refer to the English version for accurate content. Although we strive to ensure the accuracy of the original information, please check separately for each information. Interpretations and future prospects are the personal opinions of each researcher.

Vietnam’s railway system plays an important role in connecting economic regions and promoting socio-economic development. However, the current infrastructure still has many limitations, requiring significant investment and upgrading. This article will analyze the current state of Vietnam’s railway infrastructure, future development goals, and potential for businesses and investors in this field.

Current status of Vietnam’s railway infrastructure

Vietnam’s railway network is currently managed by the Vietnam Railway Authority, under the Ministry of Transport. According to data from the General Statistics Office, as of 2022, the national railway network will have a total length of 3,315 km, including 2,647 km of main lines and 515 km of stations and branch lines[1]. This infrastructure has existed for more than a century and is now deteriorating, failing to meet modern transportation needs[2].

Railway lines in Vietnam

Source: Quochoi.vn

In 2024, the Vietnamese railway industry served more than 7 million passengers, an increase of nearly 1 million compared to 2023, reaching the highest level ever[3]. This growth is mainly due to two important factors: improved service quality and increased number of train routes. In recent years, the railway industry has upgraded high-quality trains, combined with tourism services, providing passengers with more suitable options. At the same time, optimizing routes and expanding train routes also contribute to improving convenience for passengers.

In terms of revenue, in 2024, Vietnam Railways Corporation recorded consolidated revenue of about VND 9,700 billion, an increase of 7.9% over the previous year[4]. Despite steady growth, rail transport has yet to compete with road and water transport in terms of popularity. However, with improvements in service quality and infrastructure, the rail sector is gradually attracting more passengers and freight transport businesses.

In terms of ticket prices, when compared to airplanes, train tickets are relatively competitive but take longer to travel. Specifically, on the Hanoi – Da Nang route, a ticket for a 6-seat air-conditioned compartment on the 2nd floor costs about 677,000 VND, while airfare ranges from 680,000 VND or more, depending on the time of booking[5]. Overall, trains still have a cost advantage if you book in advance or choose economy class seats.

In particular, one of the important steps in the modernization of the railway industry is the emergence of elevated metro lines. A typical example is the Cat Linh – Ha Dong line in Hanoi, which was put into commercial operation in November 2021. To date, the line has transported more than 25 million passengers, with more than 35,000 passengers per day, of which 47% are commuters and 45% are students. The development of metro lines not only improves urban mobility but is also a sign that Vietnam is gradually upgrading its railway system towards modernity and sustainability[6].

Cat Linh – Ha Dong metro line to be put into commercial operation from 2021

Source: Kinhtedothi.vn

Vietnam Railway Infrastructure Development Goals

On October 19, 2021, the Prime Minister issued Decision No. 1769/QD-TTg approving the Railway Network Planning for the 2021-2030 period, with a vision to 2050[7]:

Criteria	Target by 2030	Vision to 2050
Railway length	2,440 km of national railways were renovated, upgraded, and newly built	Complete a modern, synchronous railway network
North-South high-speed railway	Start construction and exploitation of priority sections (Hanoi – Vinh, Ho Chi Minh City – Nha Trang)	Complete the entire route, speed can reach 320 km/h
Route connecting seaport, airport, economic zone	Building new railway lines connecting important seaports, international airports, and key economic zones	Complete synchronous connection with the national transport system
Renovation and upgrading of old routes	Renovate existing railway lines to ensure safety and increase transport capacity	Continue upgrading to meet modern technical standards
Urban railway system (Metro, Monorail, Tramway)	Hanoi: Complete 3-4 metro lines (lines 2, 3, and expansion 1) HCMC: Complete at least 2 lines (lines 1 and 2)	Complete the urban railway network in Hanoi, Ho Chi Minh City and expand to other major cities such as Da Nang, Hai Phong, Can Tho
Passenger transport rate	Railways account for about 5-7% of the passenger transport market share	Increase the rate to 15-20% of total passenger transport demand
Freight Rate	Railways account for about 5-6% of the freight transport market share	Increase by about 20-25% thanks to dedicated railway connecting seaports and industrial parks
Estimated investment level	About 240,000 – 280,000 billion VND (equivalent to 10-12 billion USD)	Total investment could be up to 1,500,000 billion VND (equivalent to 60 billion USD)

Vietnam is also planning to build a new 427-km railway connecting the border province of Lao Cai with China’s Yunnan province, via Hanoi and key port cities such as Hai Phong and Ha Long. The project, with a total investment of about $7.2 billion, is expected to enhance trade and transport links between the two countries. The railway is expected to serve about 8.3 million passengers and transport 17.5 million tons of cargo per year by 2050[8].

The development of railway projects not only helps meet transportation needs but also creates great opportunities for businesses and investors to participate in Vietnam’s transport infrastructure. In particular, high-speed railways and international connections will promote supporting industries, create new jobs and contribute to sustainable economic growth.

Potential for Japanese businesses and investors

Japan has long been an important partner in developing transport infrastructure in Vietnam, especially in the railway sector. With 52 ODA projects in the transport infrastructure sector, Japan has always been the leading ODA donor for Vietnam[9]. A typical example is the Metro Line 1 project (Ben Thanh – Suoi Tien) in Ho Chi Minh City, built with ODA support from Japan. This project has officially been put into commercial operation since the end of December 2024, marking an important step forward in Vietnam’s urban transport system[10].

In addition to providing ODA capital, Japan also supports Vietnam in transferring technology and training human resources for the railway industry. Through cooperation programs with the Japan International Cooperation Agency (JICA), Japanese experts have shared experiences, transferred technology and provided training support for lecturers and staff of the Vietnamese railway industry. Typically, from July 31 to August 10, 2023, a JICA expert team conducted a technology transfer program at the Railway College, aiming to improve training capacity and develop high-quality human resources for the urban railway industry[11].

Deputy Minister of Transport Nguyen Xuan Sang and Deputy Minister of MLIT Doko Shigeru agreed to promote practical and effective cooperation between Vietnam and Japan in the field of transport

Source: Baochinhphu.vn

Furthermore, Japan has also expressed its interest and willingness to support Vietnam in high-speed railway projects. During the working sessions between representatives of the two countries, the Japanese side proposed to provide capital and share experience for the North-South high-speed railway project, an important project with a total estimated investment of more than 67 billion USD, aiming to connect Hanoi and Ho Chi Minh City, shortening travel time between the two largest economic centers in the country[12] .

Challenges and solutions

Despite its great potential, the development of railway infrastructure also faces many challenges. First is the problem of large investment capital. According to calculations, the total investment for railway projects by 2030 is about 151.2 billion USD, including urban railways[13]. Mobilizing this capital requires the participation of both the state and the private sector.

Land clearance and resettlement are major challenges in implementing railway projects, especially in densely populated urban areas. To address this issue, appropriate mechanisms and policies are needed to ensure the rights of affected people. In addition, it is necessary to improve project management and implementation capacity, ensuring progress and quality of works. Applying modern technology and learning from experiences from countries with developed railway systems will help minimize risks and increase investment efficiency[14].

Conclusion

Developing railway infrastructure is one of Vietnam’s strategic priorities in the coming period. Investment in this sector will not only meet the growing demand for transportation but also open up many opportunities for domestic and foreign enterprises. In particular, high-speed railway projects and international transit routes will help Vietnam connect more deeply with regional supply chains, increase transport capacity and reduce pressure on the road system. This will not only promote trade but also support sustainable development, reduce emissions and protect the environment.

[1] https://www.gso.gov.vn/du-lieu-va-so-lieu-thong-ke/2023/06/duong-sat-viet-nam-qua-mot-so-chi-tieu-thong-ke/

[2] https://quochoi.vn/pages/tim-kiem.aspx?ItemID=81230

[3] https://vnexpress.net/hanh-khach-di-tau-tang-ky-luc-4836123.html

[4] https://vietnamnet.vn/duong-sat-van-chuyen-7-trieu-luot-hanh-khach-loi-nhuan-tren-220-ty-nam-2024-2360582.html

[5] https://www.vietnamairlines.com/vi-vn/v%C3%A9-m%C3%A1y-bay-t%E1%BB%AB-h%C3%A0-n%E1%BB%99i-%C4%91%E1%BA%BFn-%C4%91%C3%A0-n%E1%BA%B5ng?utm_source=chatgpt.com

[7] https://vanban.chinhphu.vn/default.aspx?pageid=27160&docid=204311

[9] https://mt.gov.vn/vn/tin-tuc/92593/viet-nam–nhat-ban-hien-thuc-hoa-hop-tac-hai-ben-bang-cac-du-an-ha-tang-giao-thong-.aspx

[10] https://cafeland.vn/tin-tuc/thu-tuong-de-nghi-nhat-ban-ho-tro-von-cho-cac-du-an-duong-sat-cao-toc-133620.html

[11] http://caodangduongsat.edu.vn/chuyen-gia-jica-nhat-ban-chia-se-kinh-nghiem-bien-soan-chuong-trinh-dao-tao-va-chuyen-giao-cong-nghe-duong-sat-do-thi-cho-giang-vien-truong-cao-dang-duong-sat/

[12] https://cafef.vn/sieu-du-an-67-ty-usd-cua-viet-nam-duoc-nhat-ban-3-lan-danh-tieng-trung-quoc-2-lan-ngo-y-hop-tac-se-ghi-dau-moc-quan-trong-trong-thang-nay-188250118103307275.chn

[13] https://cand.com.vn/Giao-thong/dau-tu-ha-tang-giao-thong-can-nguon-von-khung-de-lam-duong-sat-i741865/

[14] https://baodauthau.vn/nhieu-thach-thuc-khi-dau-tu-duong-sat-cao-toc-bac-nam-post166057.html

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