Vietnam's Ministry of Transport has put forward a proposal to build a North-South high-speed rail line that can travel at 350 kilometers per hour to serve passengers and transport freight as a contingency measure.

The proposal was presented during a meeting on Tuesday discussing the development of the country's express railway system.

The proposed line would prioritize passenger transportation, a departure from the current railway system primarily dedicated to freight transport, according to the ministry.

Speaking of the impact of the North-South high-speed railway on the nation’s economy, the ministry said that the project is estimated to contribute one percentage point to Vietnam’s GDP growth each year during the 2025-37 period.

Deputy Minister of Transport Nguyen Danh Huy said that large-scale national rail line projects require high technical standards and take much time.

The country has yet to produce trains, railway devices, equipment, and components and is lacking in rail experts, so it is vital to carefully consider the construction of the express rail line and boost cooperation between relevant units, ministries, and localities.

Huy underscored that rail lines will benefit the Vietnamese economy, but their direct financial effects may not be substantial.

Some experts told the meeting chaired by Deputy Prime Minister Tran Hong Ha that apart from passenger transport services, the high-speed line should increase the market share of freight transport by train to reduce logistics costs.

Also, the cross-country express railway should be connected with some international rail lines.

Besides, the experts suggested the country invest in the railway industry, and locomotive and carriage manufacturing to strengthen the national railway system.

Deputy Prime Minister Ha asserted that an industrialized and modernized nation needs high-speed rail lines to lower logistics expenses and improve its economic competitiveness.

Ha has tasked the Ministry of Transport with finalizing the investment plan for the North-South high-speed rail line.

This involves clarifying its economic impact and operational efficiency, presenting strategies for capital mobilization and technology transfer, and devising a roadmap for advancing the country's proficiency in the railway industry.

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