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Tag: metro line

  • UK Plans $2.5 Billion Financing for Ho Chi Minh City Metro Extension

    UK Plans $2.5 Billion Financing for Ho Chi Minh City Metro Extension

    UK Export Finance, Britain’s export credit agency, is preparing up to $2.5 billion in financing to help Ho Chi Minh City extend its metro line to Long Thanh International Airport, according to reports in September 2026.

    The planned facility from UK Export Finance represents one of the largest single Western financial packages proposed for Vietnam’s urban rail network, targeting the transit corridor between the country’s main commercial centre and its upcoming aviation hub.

    Financing the Airport Corridor

    UK Export Finance structured the proposed package to back engineering, rolling stock and systems procurement as municipal planners push to connect the city center with Long Thanh. The greenfield airport in neighboring Dong Nai province needs mass transit links before opening commercial terminals to relieve congested Tan Son Nhat International Airport.

    Vietnam relies heavily on bilateral export credit agencies and official development assistance to build out urban rail. Ho Chi Minh City’s initial metro infrastructure experienced extended delays and budget adjustments, prompting authorities to look for structured export credit packages that tie financing directly to equipment delivery and construction milestones.

    Shifting Transit Real Estate Dynamics

    Securing rail access between central Ho Chi Minh City and Long Thanh changes commercial land economics across the southern economic corridor. Retail developers, logistics operators and hospitality groups have acquired land parcels around planned transit nodes, anticipating commuter volume shifts once the airport becomes operational.

    For international contractors and rail operators, the British financing framework opens direct procurement channels in a market historically dominated by Japanese, South Korean and European consortiums. The risk centers on local site clearance and rights-of-way handovers across provincial borders, which previously slowed rail integration projects across the metropolitan area.

    Broader National Transport Timelines

    The financing proposal emerges alongside an accelerated national infrastructure schedule. Vietnam set a target date of December 2027 to start construction on its multi-billion dollar north-south high-speed rail line, while provincial authorities fast-track supplementary feeder roads and freight connectors across southern industrial zones.

    Final credit terms and municipal approvals will determine when procurement tenders open for the Long Thanh airport rail route.

  • Big Corporations Set Sights on HCMC’s Ambitious Metro Line Projects

    Big Corporations Set Sights on HCMC’s Ambitious Metro Line Projects

    The Dai Dung Corporation, Construction Corporation No. 1 Joint Stock Company (CC1), and Hoa Phat Group have joined forces to form a partnership known as DCH, seeking the approval of the HCM City People’s Committee to participate in local urban railway projects as the general contractor for engineering, procurement, and construction (EPC).

    Three Railway Lines on the Horizon

    DCH aims to invest in three significant railway lines: Metro Line No. 2 (Ben Thanh – Tham Luong), the Thu Thiem – Long Thanh railway line, and the Binh Duong New City – Suoi Tien line. This ambitious initiative is poised to transform the landscape of urban transportation in Ho Chi Minh City.

    Vingroup’s Bold Proposal

    In a parallel move, Vingroup has set the stage for innovation by proposing a metro line that would connect the city center to Can Gio island district. This ambitious project, estimated at VND102.37 trillion (around US$4.09 billion), boasts a staggering 48.5 km route designed for speeds reaching 250 km/h—twice the speed of current undertakings—and aims for completion in just two years!

    Fast-Tracking Urban Railways

    The city’s Department of Construction reports that Vingroup’s investment model is a public-private partnership (PPP). After gaining municipal approval, the company is hastening the completion of investment documentation and conducting a pre-feasibility study. If everything aligns perfectly, construction could kick off in early 2026, making way for the first urban railway line fully funded by a private entity by 2028.

    More Players Enter the Game

    Chairman of the municipal People’s Committee, Nguyen Van Duoc, has disclosed that besides Vingroup, Gamuda Group and Vietjet are also eager to jump into the urban rail market, with plans for additional routes connecting the city center to the airport and other key locations.

    Metro Ambitions for the Future

    According to HCM City’s master plan for the period of 2021–2030, with eyes set on 2050, the metropolis is looking to develop 12 metro lines stretching over 600 km, linking Tan Son Nhat airport to urban areas and neighboring provinces. By 2035, the goal is to have seven lines operational, covering approximately 355 km with an estimated investment of US$40.2 billion.

    Private Interest on the Rise

    Prof. Dr. Vo Xuan Vinh, Director of the Institute of Business Research at the University of Economics Ho Chi Minh City, notes that following the issuance of Resolution 68 by the Politburo, private enterprises are becoming increasingly engaged in large-scale projects, ready to embrace the associated risks. This shift promises to revolutionize the pace of urban railway development in both HCM City and Hanoi, traditionally reliant on official development assistance (ODA).

    New Mechanisms for Investment

    Dr. Nguyen Quoc Hien, deputy head of the HCMC Management Authority for Urban Railways, emphasized the importance of developing specific legal frameworks to facilitate private investment in urban rail projects. He observed that successful PPP projects in places like Hong Kong, China, and South Korea often follow investment forms like Build-Transfer-Operate (BTO), Build-Transfer-Lease (BTL), or Build-Lease-Transfer (BLT). The absence of these models in existing resolutions suggests a need for innovative thinking in legal frameworks if we want to see a rapid transformation in the urban rail sector in Vietnam.

    Questions & Answers

    What is the purpose of the partnership between Dai Dung Corporation and others?
    The partnership aims to work on urban railway projects in Ho Chi Minh City as the EPC general contractor.

    What is Vingroup’s proposed metro line’s key feature?
    Vingroup’s proposed line will connect the city center to Can Gio island with a remarkable speed of 250 km/h, expected to be completed in two years.

    How many metro lines does HCM City plan to build by 2030?
    The city plans to establish 12 metro lines, covering over 600 km, with seven lines targeted for completion by 2035.

  • Hanoi plans to offer 15-day free travel on first metro line

    Hanoi plans to offer 15-day free travel on first metro line

    The Hanoi People’s Council has proposed 15 days of free travel after the first metro line opens. The proposal, released for public comment Friday, will apply once the Line 2A: Cat Linh-Ha Dong elevated railway starts operating commercially.

    The city also plans to subsidize 50 percent of the monthly fare for students, workers from industrial parks, and senior citizens. Officials and employees working outside industrial zones would get a discount of 30 percent if they buy group monthly tickets.

    Individual passengers can buy monthly season tickets for VND200,000 ($8.61) or daily tickets for VND30,000 ($1.29), both allowing unlimited trips. Single trips will cost from VND7,000-15,000 ($0.3-0.65) per person depending on the distance travelled.

    Tickets can be paid for with cards or cash. Card payments will get discount of VND500 (2.2 cents) per single trip. Although the price is higher than a bus ticket, the train runs twice as fast. From one end of the 13km Cat Linh – Ha Dong route to the other, the journey takes just 22 minutes, he said.

    The route runs from Cat Linh Station in downtown Dong Da District to the Yen Nghia Station in the south-west Ha Dong District. The Chinese contractor of the metro, China Railway Sixth Group Co., Ltd, plans to finish trial runs this month, and begin commercial operations in April.

    However, according to a recent inspection by the Ministry of Transport, installation of devices and machinery on the metro line is only 90 percent complete.

    Vu Hong Phuong, deputy director of the metro project, said several parts of the project, including sanitation, air conditioning, water supply system and drainage system in stations along the line have not been completed.

    Hanoi, a city of more than 7.5 million people, has 5.2 million motorbikes and around 550,000 cars, besides some 1.2 million vehicles brought by non-residents, according to police figures.