Vingroup of Vietnam’s richest man Pham Nhat Vuong withdraws from bid to develop $67B north–south high-speed railway

The company said Thursday that the decision is meant to help focus its resources on other key infrastructure projects that have already been approved, such as the 9,000-hectare Olympic-standard sports complex in Hanoi, 54-kilometer Ben Thanh–Can Gio metro line in HCMC and 120-km high-speed rail link between Hanoi and Ha Long Bay.

It is also building a steel plant called VinMetal 2, two wind power plants in Ha Tinh Province, an LNG plant in Hai Phong city, and an urban area in HCMC’s coastal Can Gio ward.

“This is a proactive and responsible move by Vingroup to ensure projects that have already been approved are carried out in the best way possible,” it said.

Vingroup had applied to build the north-south rail through subsidiary VinSpeed by plowing in 20% of the cost and borrowing the rest for 35 years at zero interest from the government.

Shares of the conglomerate (VIC) and its two listed subsidiaries, Vinhomes (VHM) and Vincom Retail (VRE), fell to their floor prices following news of its withdrawal from the project.

The high-speed rail will run 1,541 kilometers from Ngoc Hoi Station in Hanoi to Thu Thiem Station in HCMC, passing through 20 provinces and cities. It has an estimated cost of VND1.7 quadrillion (US$67 billion).

The government has announced plans to break ground on the project in December 2026 and complete it by 2035.

At a meeting Tuesday Prime Minister Pham Minh Chinh called for identifying the optimal investment model for its construction that ensures transparency and feasibility.

Several other companies have also expressed interest in the project, including automaker Thaco and Vietnam Railways. Steelmaker Hoa Phat recently started building a plant to supply steel for the project.