Vietnam urban railway development is gaining attention as Ho Chi Minh City seeks faster metro expansion. The city has opened only the Ben Thanh–Suoi Tien metro line so far. Yet its transport plan targets a 355-kilometre urban railway network by 2035. A newer political target is even more urgent. Resolution No. 09-NQ/TW seeks 200 kilometres of metro lines by 2030. It also aims to substantially complete the city’s metro network by 2045. These goals are difficult to meet through public funds alone. Official development assistance and grants remain useful, but procedures can be slow. Therefore, the city is turning to public-private partnerships. The aim is to bring private capital, stronger delivery skills and wider technical capacity into metro development.
Several major companies are now linked with rail projects in Ho Chi Minh City. Vingroup is investing in the Ben Thanh–Can Gio metro line. The route could connect the city centre with the southern coastal area. Thaco is developing Metro Line No. 2 between Ben Thanh and Thu Thiem. The project broke ground in April 2026. Thaco is also studying the Thu Thiem–Long Thanh railway project. Its groundbreaking is planned for July 2026. Becamex has also been assigned to study the Bau Bang–Cai Mep railway project. For Vietnam urban railway development, this private interest is important. The city wants six key metro projects during 2025–2030. Their estimated cost is more than 19 billion USD. However, investors will need clear rules, fair returns and balanced risk sharing.
Metro projects are harder to finance than toll roads. Roads can earn direct user charges from vehicles. Urban railways usually need years to build strong passenger numbers. Fare income often cannot cover construction, operation and maintenance costs. As a result, investors look for wider revenue sources. These may include station-area property, retail space, advertising and underground commercial areas. Experts have also stressed the need for better risk sharing. They also support transit-oriented development and transparent cost recovery rules. National Assembly Resolutions No. 98/2023/QH15 and No. 188/2025/QH15 help Ho Chi Minh City test new tools. These tools cover land value capture and TOD-based development. With the right structure, metro stations can support housing, business activity and better mobility.
The next challenge is turning policy support into bankable projects. One practical idea is to separate land clearance from construction. The public sector can clear land with public investment funds. Investors can then start work on prepared sites with lower early-stage risk. Experts have also proposed seed funding and conditional direct contracting for project preparation. Vietnam already uses PPPs in transport, energy, water and urban infrastructure. This experience can support metro delivery as well. Successful Vietnam urban railway development will need clear government backing and serious private participation. It will also need TOD revenue, fair risk allocation and long-term planning. If these elements work together, Ho Chi Minh City can reduce congestion. It can also improve access to public transport and support greener urban growth.
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