Vingroup pulls out of bid to invest in North-South high-speed railway

These include the Olympic Sports urban area in Hanoi, spanning more than 9,000 hectares and featuring Trong Dong Stadium, with a seating capacity of 135,000 people.

The group is also concentrating on a range of other industrial, infrastructure, and energy projects, such as the VinMetal 2 steel manufacturing plant, two wind power plants in Ha Tinh province, the Haiphong liquefied natural gas thermal power plant, and the Can Gio coastal reclamation megacity.

“This is a proactive and responsible step by Vingroup to ensure the effective implementation of projects already entrusted to us,” the group said in the announcement on December 25.

The proposal to invest in the North-South high-speed railway was put forward in May by VinSpeed, a Vingroup subsidiary. At the time, VinSpeed ​​planned to cover 20 per cent of the capital, with the remainder proposed as a state loan at a zero interest rate, with a 35-year term from the date of disbursement.

Alongside this project, VinSpeed ​​has also been investing in other high-speed rail schemes, including the Ho Chi Minh City - Can Gio line (54 km) and the Hanoi-Halong line (120 km). Recently, the company signed a strategic partnership and technology transfer agreement with Siemens Mobility GmbH (Siemens AG, Germany) in high-speed rail. Under the agreement, VinSpeed ​​plans to use Velaro Novo, Siemens' newest and most advanced train platform, which is already in operation in countries such as Belgium, France, and the United Kingdom.

Following news that Pham Nhat Vuong's group had withdrawn from the North-South high-speed rail project, all three Vingroup-related stocks (VIC, VHM, and VRE) fell to their daily limit. VIC had around 1.6 million shares offered at the floor price.

The North-South high-speed railway project has a preliminary total investment of approximately VND1.7 quadrillion ($68 billion). The 1,541-km line will start at Ngoc Hoi Station in Hanoi and end at Thu Thiem Station in Ho Chi Minh City, passing through 20 provinces and cities. It is considered one of the country's strategic infrastructure projects, expected to create a new growth driver for the economy.

In addition to Vingroup, several other companies have expressed interest in investing in the project, including THACO (Truong Hai Auto Corporation) and Vietnam Railways. Hoa Phat has also recently broken ground on a steel plant intended to supply rail steel products for the project.

The National Assembly has approved private sector participation in the project. In July, the government set a target to break ground on the North-South high-speed railway in December 2026 and complete it by 2035. At a meeting on December 23, Prime Minister Pham Minh Chinh called for the selection of the most optimal investment model for the project, ensuring transparency and scrutiny.

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