The massive project would pass through 20 provinces and cities.

18:24, Sat, Dec 27, 2025 Updated: 18:24, Sat, Dec 27, 2025

Asian businesswoman waits for high speed train

Vietnam wants to build a huge high-speed railway line (Image: Getty)

A massive £49.5billion railway project that would stretch 1,541 kilometres has suffered a huge blow. The high-speed line connecting the Hanoi in the north of Vietnam to Ho Chi Minh city in the south of the country was approved in 2024, but Vingroup, owned by billionaire Pham Nhat Vuong, has withdrawn a bid to build it. The decision was made so funds could be prioritised for other key infrastructure builds that have already been approved, the company said.

These include a huge Olympic-standard sports complex in Hanoi, the 54-kilometre-long Ben Thanh–Can Gio metro line in Ho Chi Minh City and 120-kilometre-long high-speed rail link between Hanoi and Ha Long Bay. "This is a proactive and responsible move by Vingroup to ensure projects that have already been approved are carried out in the best way possible," the firm said.

Hà Nội Cityscape

The high speed trains would travel between Hanoi and Ha Long Bay (Image: Getty)

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Vingroup is also overseeing the construction of a steel plant, two wind power plants, an liquified natural gas project, as well as an urban development in Ho Chi Minh City, Vinexpress International reported.

Construction was expected to begin in 2027 in 2024, with the first trains forecasted to start operating by 2035 at the time.

However at that point, large projects in Vietnam had already been hit by by delays.

When the scheme is finished, high-speed trains will pass through 20 provinces and cities.

The line will have on it 23 passenger stations and five freight stations, which will help transport both people and goods, AP reported.

Deputy Minister of Transport Nguyen Danh Huy said: “This project is pivotal for restructuring transport shares and serves as a cornerstone for Vietnam’s leap into a new era of growth."

It comes after at the start of this year, Vietnam’s Government increased its 2025 infrastructure spending target from 6% of GDP to 7% of GDP, and lifted its GDP growth target for 2025 from 7% to 8%.

Asset management company VinaCapital stated in a report: "In early 2025, the Government announced additional public investments into large infrastructure projects related to railways and ports (and earlier construction timelines for certain projects, as noted previously).

"Investments into railways and ports aim to further streamline freight movement, improve workforce mobility, and facilitate more FDI inflows into Vietnam.

"For example, expanding Vietnam’s highway/railway network would enable FDI companies to locate their factories in a wider range of areas to access a deeper labour pool (note that 80% of freight volume in Vietnam is transported by road)."