Vietnam unveils $67 billion high-speed railway project

Vietnam has announced plans to construct a $67 billion high-speed railway connecting Hanoi in the north to Ho Chi Minh City in the south, a project aimed at modernizing the country’s infrastructure and driving economic growth.

The railway, which will stretch more than 1,500 kilometres (930 miles) from the capital in the north to the country's business hub in the south, will reduce the current journey time by rail from 30 hours to around five, News.Az reports, citing foreign media.

"The national assembly voted to approve... a resolution on investment policies for the high-speed railway project on the North-South axis," said a statement on Vietnam parliament's website.

Vietnam's transport infrastructure is considered relatively weak, with a road network struggling to keep up with demand and an underdeveloped rail system.

The expressway density is one of the lowest in the region, although Vietnam is pushing to expand it, while road transport costs are among the highest.

The country is an increasingly favoured destination for foreign businesses looking for an alternative to China, but low-quality infrastructure is seen as holding back surging investment.

Deputy Minister of Planning and Investment Tran Quoc Phuong earlier called the new line "a breakthrough" in the country's infrastructure that would boost the country's GDP by an average of 0.97 percentage points annually.

"It is the wish of the people and the determination of the political system to have an international-standard high-speed railway," he said prior to the approval.

News.Az