Vietnamese property conglomerate Vingroup will pour around VND100 trillion ($4.55 billion) into metro line projects in Hanoi, becoming the first private domestic firm to join the field.
|The Hanoi 2017 – Investment and Development Co-operation conference brought the domestic private sector onto Hanoi's public transportation scene
At the “Hanoi 2017 – Investment and Development Co-operation” conference held on June 25, 2017, Vingroup signed a Memorandum of Understanding (MoU) with Hanoi authorities to develop metro lines in the city in the coming time to meet the growing local demand for transportation.
This was one among the 15 MoUs signed at the event between Hanoi and domestic and foreign investors.
Vingroup proposed to invest in a number of metro routes. For Line 2 (South Thang Long-Tran Hung Dao), the firm wants to join the Noi Bai-Nam Thang Long section, while at Line 3 (Nhon-Hanoi Station), it is eager to join Hanoi Station-Hoang Mai and Nhon-Troi-Son Tay sections.
The other routes of Vingroup’s interest include Van Cao-Beltway 4 and Beltway 4-Hoa Lac of Line 5; Noi Bai-Phu Dien-Ha Dong-Ngoc Hoi of Line 6; and Son Dong-Mai Dich and Mai Dich-Beltway 3-Duong Xa of Line 8.
Earlier this year, Hanoi said that LUNGLO Construction Corporation, Vingroup, and Xuan Thanh Group proposed to join the development of metro lines in the city.
Currently, the city’s two metro projects, namely Cat Linh-Hadong and Nhon-Hanoi Station, are being developed by foreign contractors. However, the constructions are behind schedule, driving up investment capital.
Under the prime minister-approved transport development plan by 2030, with a vision towards 2050, Hanoi will build nine metro lines with a total length of 372.5 kilometres and an estimated total investment capital sum of VND700 trillion ($31.8 billion).