Vietnam’s largest conglomerate, Vingroup, announced on Friday ( May 16 ) that it had submitted a proposal to construct the nation’s multi-billion-dollar high-speed railway between Hanoi and Ho Chi Minh City, with state media reporting that the government had welcomed the proposal.
The project, which was scheduled to charge US$ 67 billion when it was approved in November, provides a much-needed raise to equipment that is anticipated to boost growth and strengthen Vietnam’s standing with foreign investors.
The route will cover more than 1,500 kilometers between the nation’s capital in the northwest and its south-focused business hub, and it will cut the latest train travel time from 30 hours to about 5 hours.
Vingroup confirmed to AFP on Friday that they had submitted a proposal to the state for the construction of the series.
The project may start in December and be finished by 2030, according to Vinspeed, a newly established business that is part of the Vingroup empire, five years ahead of the routine announced last year.
The business pledged to mobilize 20 % of the company’s overall capital, or US$$ 12.27 billion.
The remaining 80 %, excluding expenses incurred by compensation and settlement for land clearing, were suggested by the state as a zero-interest product.
Dao Thuy Van, deputy director of Vinspeed, said in the statement,” We will exert our best efforts… to develop the project… ( and ) pay the loans in time.
Vinspeed’s proposal” may substantially help reduce the state budget’s pressure,” the statement added.