Vietnam’s Finance Ministry has raised concerns over a set of exceptional financial incentives proposed by private investors seeking to join the country’s flagship North–South high-speed railway project, warning of potential public debt and fiscal risks.
According to the Construction Ministry, several private groups, including VinSpeed and Thaco, have shown interest in investing under a business model and have requested preferential mechanisms such as government-backed loans covering up to 80% of total investment at 0% interest for 30 years, and full corporate tax and import duty exemptions on railway equipment.
In a written response, the Finance Ministry said the proposals could “increase the government’s debt repayment obligations and negatively affect Vietnam’s credit rating.” It added that a 0% loan rate would “reduce repayment motivation and undermine fiscal discipline,” especially if investors were allowed to repay all principal in a lump sum at the end of the loan term.
The ministry also urged the Construction Ministry to clarify the sources of funds, repayment mechanisms and economic impacts, and to consider amending the existing Resolution No. 172/2024/QH15 — which already grants special mechanisms for the project — rather than introducing a separate one-off resolution.
Furthermore, the Finance Ministry emphasized that any incentives beyond the current legal framework must be submitted for higher-level approval to ensure transparency, compliance with WTO commitments, and protection of state finances.
The North–South high-speed railway is one of Vietnam’s most ambitious infrastructure projects, intended to connect Hanoi and Ho Chi Minh City. The project remains in the pre-feasibility study stage, with total investment and financing structure yet to be finalized.
