The Vietnam government said on Saturday it will build a $67-billion high-speed rail line from Hanoi to Ho Chi Minh City, according to regional media reports.
The rail line will run from the capital in the north to the country’s business centre in the south, a distance of more than 1,500km kilometres (930 miles).
The move, backed by a vote by the National Assembly, could slash the journey time from 30 hours to about five and is expected to provide a significant boost to infrastructure and to drive economic growth.
The project – predicted to start in 2027 and be finished by 2035 – is likely to be funded via long-term bonds, official development assistance and concessional loans, according to the Business Times in Singapore, which said the country has a robust export sector and public debt is relatively low – about 37% of GDP last year.
Leaders in Hanoi and Beijing recently discussed a cross-border rail link from China to the northern port of Haiphong.
Read the full report: The Business Times.
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