Vietnam Sets New Standards For High-Speed Rail By Tapping Into Global Expertise And Advanced Solutions

Published on September 15, 2025

Vietnam is tapping into global expertise and advanced technologies to develop its high-speed railway, aiming to create a world-class transport system that enhances connectivity, boosts economic growth, and sets new standards in infrastructure development. By learning from successful international models, Vietnam seeks to integrate innovative practices and ensure sustainable, efficient, and reliable rail services for the future.

Vietnam is exploring global innovations and cutting-edge technologies in preparation for its ambitious North-South high-speed rail project, aiming to build a state-of-the-art transport system. The University of Transport and Communications (UTC) has gathered 24 scientific reports that examine modern technologies in high-speed rail design, construction, operation, and management, contributed by both local and international experts, businesses, and managers.

These reports highlight success stories from around the world, offering valuable insights for the development of Vietnam’s own rail network. Japan, for instance, pioneered high-speed rail with the Shinkansen line, which first opened in 1964. The success of this system can be attributed to centralized management, the separation of operations and infrastructure, and the integration of transit-oriented development (TOD). The Japanese government played a key role in providing strategic direction, while market-driven operations generated additional revenue from commercial services and real estate developments around train stations.

South Korea also presents a successful model with its super high-speed rail project, which utilized a public-private partnership (PPP) model. In this arrangement, the government supported site clearance and provided partial capital, while private companies were responsible for managing operations, collecting fees, and sharing risks under transparent contractual agreements.

China, with the world’s largest rail network spanning 47,000 kilometers, used public capital for initial development. However, the country also encouraged private firms to participate in the manufacturing of rolling stock, engineering, procurement and construction (EPC) contracts, and local rail line operations, creating a blend of state-led investment and private sector involvement.

In Europe, Germany adopted an approach that included thorough environmental and social assessments before approving investments. The country also facilitated transparent competition among private operators. France, on the other hand, concentrated public investment in infrastructure while encouraging private sector participation in EPC projects, build-transfer (BT) agreements, and operations. Since 2021, France has opened its rail market to competition, allowing private companies to engage in vehicle manufacturing, maintenance, and urban services at train stations.

These global experiences offer crucial lessons for Vietnam as it moves forward with its high-speed rail project. Key strategies include integrating TOD to generate revenue through real estate development, employing transparent public-private partnerships with clear risk-sharing mechanisms, and fostering private sector participation in various aspects of rail operations and maintenance.

The role of the government in creating a stable environment for private sector involvement is emphasized as essential for the project’s success. The government should act as the architect of the legal framework and a risk guarantor, ensuring that the project remains attractive to private investors. With clear planning and a comprehensive legal structure, Vietnam could draw significant private sector interest. This involvement would not only help mobilize capital but also stimulate supporting industries, improve management capacity, and contribute to sustainable economic and social development.

Different countries have adopted various approaches to the development of high-speed rail systems. For example, the United States follows a bottom-up model, with initiatives led by universities and businesses, while Japan and South Korea use top-down strategies driven by government leadership. Japan, in particular, emphasizes community involvement to ensure the sustainability of its rail projects.

To align with international best practices, UTC has been piloting a “five-party cooperation” model, which extends beyond the traditional collaboration between the state, universities, and enterprises. This model includes technology transfer units and local communities that benefit from the project. Such a multi-party collaboration is vital for developing high-quality human resources and national strategic technologies. In this model, the state sets policies, businesses drive market dynamics, and universities provide knowledge and human resources.

Vietnam is looking to global experiences to shape its high-speed rail project. By adopting best practices from countries like Japan, South Korea, China, Germany, and France, Vietnam aims to develop a rail network that is efficient, sustainable, and integrated with private sector participation. The success of this project will depend on creating a stable environment for private investment, establishing clear roles for each sector, and ensuring that the rail system benefits the wider economy and society.