Vietnam Should Seriously Consider US$56B Railway Project

Vietnam should take careful consideration for economic efficiency of US$55.8-billion North-South express railway project before the country decides to carry out it, Japanese Ambassador to Vietnam Mitsuo Sakaba said.

Sakaba cited a recent survey by the Japan International Cooperation Agency (JICA) on the economic efficiency of the project that only a small number of passengers are expected to choose the future railway.

“It may take them six hours to travel from Hanoi to Ho Chi Minh City by the railway compared to just two hours by air. Meanwhile, the train tickets may be as expensive as airfares”, the ambassador said.

The potential passengers of the planned railway are people who travel in the short distances from Hanoi to Vinh city, from Vinh to Hue city or from Vinh to Danang city, according to the survey.

It also indicated that Vietnam can only benefit from the project in 2035 when urban areas along the route are developed, he said, noting that it is necessary for the local government to think of the project’s return capacity.

“We are waiting for Vietnam’s final decision to work on the project”, Sakasa said.

In a visit to Vietnam early May, Minister of the Japan Land, Infrastructure, Transport and Tourism, Seiji Maehara, said the Vietnamese plan to put the North-South railway using Shinkasen technology into 2020 is too early against local people’s living standards.

Tags: Vietnam Infrastructure, Vietnam railway project, Vietnam transport