THACO and VinSpeed Compete to Lead $61B Rail Megaproject.
On May 27, Vietnamese media reported that the Trường Hải Group (THACO) has formally proposed to be the lead investor in the North–South High-Speed Railway project, following procedures outlined in the Law on Investment.
THACO and VinSpeed—the two major contenders—both estimate the total investment cost at $61.35 billion. Each pledges to contribute 20% of the project’s capital and cover the remaining 80% through loans.
However, their approaches to financing differ. THACO proposes that the government guarantee its loans and support interest payments over a 30-year period, without seeking direct state funding. In contrast, VinSpeed has requested a 35-year, interest-free loan directly from the government.
THACO also suggests a 70-year project operation period—shorter than VinSpeed’s proposed 99 years—and has pledged not to transfer any ownership or project shares to foreign entities.
The project is planned in two phases over seven years. The first phase, lasting five years, would focus on constructing the Hà Nội–Hà Tĩnh and Hồ Chí Minh City–Nha Trang segments. The second phase, estimated to take two more years, would connect Hà Tĩnh to Nha Trang, completing the railway’s central link.
THACO proposes that ticket pricing be approved by state authorities, ensuring financial viability and an acceptable return on investment. Additionally, the company commits to serving as a core domestic manufacturer of train cars, locomotives, and signal systems to reduce costs and support sustainable industrial development in Vietnam.
Founded by Trần Bá Dương, THACO is a diversified conglomerate with roots in the automotive sector. It has since expanded into infrastructure, mechanical manufacturing, and other sectors. As of June 30, 2024, THACO’s equity stood at over 54 trillion dong ($2.16 trillion). Despite a declining profit trend since 2023, the company maintains a dominant 32% share of Vietnam’s auto market with a high localization rate.
However, THACO’s debt-to-equity ratio (D/E) is currently 2.45—translating to 133 trillion dong in liabilities. While this is within the acceptable industry norm (1–3 times), it draws attention in the context of such a massive infrastructure undertaking. In comparison, Vingroup, VinSpeed’s parent company, reported a D/E ratio of 4.23 in Q1 2025.
As both proposals undergo public and expert scrutiny, legal expert Trương Thanh Đức has called for enhanced oversight mechanisms. Speaking to VietTimes, Đức suggested forming an independent appraisal council comprised of local and international experts, government representatives, and professional associations. This body would assess the technical plans, financial structure, environmental impact, and investor capacity before making any final decision.
The North–South High-Speed Railway remains one of Việt Nam’s most ambitious infrastructure projects to date, and the competition to lead it is shaping up to be a test of both financial strength and political confidence.
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The Vietnamese (Vietnam Briefing) ngày 02-6-2025:
(59/470)