Vietnam's Ambitious Self-Funded $67 Billion High-Speed Railway Plan

Vietnam aims to independently fund a $67 billion high-speed railway from Hanoi to Ho Chi Minh City, highlighting a reluctance to use foreign loans. Experts, however, question the feasibility of this ambitious project, which represents a significant portion of the country's GDP and budget spending.

Vietnam is embarking on an ambitious journey, aiming to fully fund a $67 billion high-speed railway project connecting Hanoi to Ho Chi Minh City. The government, driven by principles of independence, seeks to avoid foreign loans, marking a departure from its usual funding practices.

The proposed railway, touted as the nation's largest infrastructure project, is projected to be completed by 2035. With trains expected to travel at speeds of 350 km per hour, the endeavor will demand about $5.6 billion annually from the state budget over the next 12 years, as per the transport ministry.

Despite existing low public debt levels, experts question Vietnam's capacity to finance such a massive project without international support. Concerns arise over potentially overestimating public funds and underutilizing foreign investments as officials assert efforts to sidestep debt traps.

(With inputs from agencies.)