Maehara ties Vietnam rail flexibility to funds

Japanese Transport minister Seiji Maehara told Vietnamese officials that in return for Japan’s financial support, they need to be flexible over an envisioned north-south high-speed railway project in their country.

Maehara said that he told Transport Minister Ho Nghia Dung during talks in Hanoi on Monday that Japan will adjust the size of its yen loans if Vietnam is flexible in its plan to build the railway, according to the minister.

Vietnam plans to adopt Japan’s bullet-train system for the 1,570-km high-speed line. The country’s Parliament is expected to officially endorse the project later this month.

The plan is to have trains run between Hanoi and Ho Chi Minh City in 5 1/2 hours.

Maehara said he urged Dung to shorten the planned operational length of the railway and delay the launch of services.

He said it would be difficult for Vietnam to partially open the railway by 2020 as planned.

The current blueprint calls for beginning operations on a section between Hanoi and the central city of Vinh and another section between Nha Trang and Ho Chi Minh City by 2020 before launching full services by 2035.

However, the government has yet to finalize funding plans for the $56 billion project and there is concern about its economic viability.

Meanwhile, Maehara joined national policy minister Yoshito Sengoku for talks with Vietnamese Planning and Investment Minister Vo Hong Phuc in an effort to secure the participation of Japanese companies in Vietnam’s plans to build nuclear power plants. (Kyodo)

Tags: Vietnam Infrastructure, Vietnam transportation