(Nov 30): Vietnam will start building a US$67 billion (RM297.98 billion) high-speed rail network to connect its northern and southern provinces in 2027, as the government plans large infrastructure projects to support its economic growth ambitions.

The National Assembly on Saturday approved the government’s proposal to build the 1,541km (958-mile) express railway, which will cross 20 cities and provinces with a designed speed of about 350km per hour. The project is expected to be completed by 2035, the government said in a statement.

This is a “particularly important” project for the country’s development, which will strengthen regional connectivity and increase the competitiveness of the economy, according to the statement, adding that it will also boost national defence and security.

Vietnam has set an economic growth target of 6.5%-7% for 2025 as it continues to power ahead as one of Southeast Asia’s fastest-growing economies. The government has also said it will “drastically” push for 7% growth in 2024 and vowed to speed up the disbursement of public funds to boost development.

The railway project is projected to increase Vietnam’s GDP by about 0.97 percentage points a year, Tien Phong newspaper reported in September. It’s also expected to generate revenue of about US$22 billion.

The North-South high-speed railway was first presented to the National Assembly in 2010, but it failed to secure enough votes to win approval due to a smaller economy and high public debt at the time, according to state media VOV.

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