Vingroup Proposes $4B Metro Line from District 7 to Can Gio
Vingroup offers to fully fund and operate a $4 billion high-speed metro connecting District 7 and Can Gio, boosting infrastructure and tourism.
Table of Contents
Vingroup Aims to Invest $4 Billion in District 7 - Can Gio Metro
Vingroup has proposed to fully finance and develop a high-speed metro line connecting District 7 to Can Gio, with an estimated investment of $4 billion.
The proposal, recently submitted to the Ho Chi Minh City Department of Finance, outlines that Vingroup plans to execute the project under a Public-Private Partnership (PPP) model, using a Build-Own-Operate (BOO) contract structure. This means Vingroup will arrange the entire investment capital, handle construction, manage operations, and maintain the line throughout the contract duration while adhering to all regulatory frameworks.
Advantages of the PPP Model
Vingroup argues that the PPP investment method has significant advantages over traditional public sector financing. Key benefits include:
Mobilization of Private Capital: The project will attract funding from domestic and international investors through bank loans, bond issuance, or equity capital.
Technological Advancement: Private investors often bring cutting-edge technologies and management expertise, crucial for major infrastructure projects.
Enhanced Project Efficiency: Driven by profitability and contractual obligations, private partners typically deliver projects faster and more cost-effectively than traditional public works.
In contrast, public investment places the entire financial burden on the government, which can strain limited public budgets, especially in a developing urban landscape like Ho Chi Minh City.
Project Details: A Major Boost for Can Gio
Vingroup plans for the District 7 – Can Gio metro to feature:
Dual tracks
1,435 mm standard gauge
Full electrification
A total length of approximately 48.5 km
Maximum design speed of 250 km/h
Two main stations at District 7 and Can Gio
This high-speed metro is expected to drastically cut travel time between central Ho Chi Minh City and Can Gio, stimulate tourism, enhance investment prospects, and significantly uplift residents’ living standards.
Vingroup's Track Record and Vision
The conglomerate emphasized its experience managing projects exceeding VND 100 trillion in total investment, consistently ranking among Vietnam’s top corporations in terms of assets, revenue, and state tax contributions. Vingroup expressed its ambition to play a larger role in advancing Vietnam’s infrastructure, particularly within Ho Chi Minh City.
“We are committed to contributing to the city’s sustainable development and look forward to obtaining approval to promptly commence this vital project,” Vingroup stated.
Thinking about investing in Vietnamās real estate market?
šļø Let Realtique guide you with expert insights, trusted advice, and tailored property options for overseas investors.
