HANOI — Vietnam’s National Assembly has approved the construction of a high-speed railway connecting the northern capital Hanoi with the southern financial hub Ho Chi Minh City, a transformative project estimated to cost $67 billion.

The 1,541-kilometer (957-mile) railway will feature trains traveling at speeds of up to 350 kilometers per hour (217 mph), reducing travel time from the current 30 hours to just five hours.

This ambitious project aims to enhance connectivity between the two major cities, boosting passenger and freight transport along the country’s key north-south corridor.

Construction is slated to begin in 2027, with operations expected to commence by 2035. The railway will pass through 20 provinces and cities, featuring 23 passenger stations and five freight stations.

Deputy Minister of Transport Nguyen Danh Huy described the railway as crucial for addressing Vietnam’s growing transportation needs and facilitating economic growth.

"This project is pivotal for restructuring transport shares and serves as a cornerstone for Vietnam’s leap into a new era of growth,” he said, as cited by state media.

The railway is also expected to serve defense purposes in addition to transporting passengers and goods.

While the project marks a significant milestone, Vietnam has faced delays with previous infrastructure initiatives, raising questions about the timeline.

State media reported that Vietnam will prioritize domestic funding for the project but may seek foreign loans if they are cost-effective and free of restrictive conditions. — Agencies