Prime Minister Nguyen Xuan Phuc has tasked the Ministry of Transport (MoT) with reporting the progress of the preparation process for the North-South express railway project with an estimated investment of VND1,350 trillion (US$58.7 billion) to the Politburo, the country’s supreme decision-making body.

The express railway project in Vietnam is estimated to cost US$58.7 billion.

The MoT in its pre-feasibility study report for the project proposed the upgrade of the existing railway tracks for freight and the construction of a new North-South railway route for passenger transportation from Hanoi to Ho Chi Minh City. The railway is expected to allow speed of 350 kilometers per hour.

With an investment of VND567.2 trillion (US$24.47 billion), the first phase of the project, scheduled to be implemented in 2020 – 2032, would be to upgrade the railway transportation infrastructure along the routes Hanoi – Vinh and Nha Trang – Ho Chi Minh City.

The second phase from 2032 – 2050 would focus on the construction of the remaining sections, costing an estimated VND783.1 trillion (US$33.79 billion).

Once completed, the high-speed railway would help reduce travel time from Hanoi to Ho Chi Minh City to around five hours and 20 minutes.

At present, the MoT’s pre-feasibility study report is under the review process of the State Appraisal Council for Investment Projects.

In 2018, the ministry revived the North-South express railway project after it was rejected by the National Assembly in 2010 due to its huge estimated investment, at that time estimated at US$56 billion, more than half of Vietnam’s GDP then.