Infrastructure & PPPs in Vietnam - Q1 2025 Update
- YOG INFRA
- Apr 2
- 23 min read
VIETNAM is undertaking infrastructure projects with a stong emphasis on transport sector - including roads, airports, ports and rail projects. These are also likely to see growth in logistics and industrial parks in the country. The clean energy sector has seen slower proejct implementation. We see bankable offtake agreement as key risk for some of these planned projects since large-scale and long-term financing will be a challenge; and this will also give impetus to local players to enter into partnerships with international investors to raise financing.
Read the latest developments in Infrastructure and PPPs in Vietnam in our Q1 2025 insight.
JANUARY 2025
VIETNAM PROPOSES USD 8.7 BN LAO CAI–HANOI–HAI PHONG RAILWAY
The Railway Project Management Board under the Ministry of Transport has proposed the construction of the Lao Cai–Hanoi–Hai Phong railway, with an estimated investment of VND 211.03 Trn (USD 8.7 Bn). The project is planned to utilize concessional loans from the Chinese government and aims to enhance regional connectivity and boost economic development.
This project is set to have its funding sourced from the Export - Import Bank of China (China Eximbank). The railway will adopt the international standard gauge of 1,435 mm and feature electrification. It will connect Vietnam’s Lao Cai border station with the Chinese railway network at Hekou North Station, continuing through Hanoi and ending at Lach Huyen Port in Hai Phong.
The main railway line spans 388.35 km, including, a 383.24 km section from Lao Cai Station to Lach Huyen Port Station and a 5.11 km segment connecting Lao Cai Station to the rail border. Additionally, branch lines include 7.89 km from Nam Hai Phong to Nam Dinh Vu Port and 2.18 km linking Yen Thuong Station to Yen Vien Station. The railway will traverse nine provinces and cities:
Lao Cai,
Yen Bai,
Phu Tho,
Vinh Phuc,
Hanoi,
Bac Ninh,
Hung Yen,
Hai Duong,
Hai Phong.
It will feature 30 stations, including three train assembly stations, 19 mixed-use stations, and eight technical stations. The railway's design speed is set at 160 km/h for the main line and 120 km/h for sections passing through Hanoi. The border section and branch lines will operate at 80 km/h.
To optimize investment efficiency, the project will be divided into two phases:
Phase 1 (by 2030): Construction of the single-track railway, with land clearance for full-scale infrastructure.
Phase 2 (post-2050): Completion of a double-track railway and additional branch lines from Nam Hai Phong to Nam Dinh Vu.
CORO ENERGY EXPANDS ROOFTOP SOLAR OPERATIONS IN VIETNAM
Coro Energy Public Limited has operationalised 47 additional rooftop solar sites in Vietnam, totalling approximately 1.4 MW of capacity. This development is part of an ongoing collaboration with Mobile World Investment Corporation, which began with a Memorandum of Understanding.
The new sites are now generating revenue, contributing to Coro's increased annual run-rate cash flows, which are estimated at around USD 350,000 from these locations. With the addition of these sites, Coro Energy now operates 84 sites in total with Mobile World Group, equating to roughly 2.6 MW of capacity.
Coro was granted exclusivity on approximately 900 company sites, estimated to offer up to 50 MW of rooftop solar capacity, primarily in Vietnam's central and southern regions known for high solar irradiation. The company constructs, owns, and operates each solar system, selling the generated electricity directly to each site under a 14-year Power Purchase Agreement (PPA), which is extendable under certain conditions.
The company’s rooftop solar portfolio in Vietnam, including a 3 MW project with Phong Phu Corporation, Coro Energy's total operating capacity of commercial and industrial (C&I) rooftop solar assets in Vietnam now stands at 5.6 MW. This portfolio generates approximately USD 600,000 in annual cash flows.
TRANSERCO LAUNCHES PILOT E-BUS ROUTES IN HANOI
Hanoi Transportation Corporation (Transerco) has started replacing all diesel buses with electric vehicles on four public routes. The Bao Yen Tourism and Construction Services Company also launched the 59-bus route using electric vehicles. According to Tramoc, 11 small electric buses will be used for Route 5 (Mai Dong-Phu Dien), 17 medium-sized vehicles for Route 39 (Nghia Do Park-Tu Hiep), 20 medium-sized buses for Route 47 (Long Bien-Bat Trang), and 20 medium-sized buses for Route 59.
With these four newly launched routes, Hanoi now has 14 bus routes using electric vehicles, including 10 operated by Vingroup. The city still has 150 routes using diesel vehicles. Hanoi aims for a mix of electric buses (50 %) and buses powered by cleaner burning fuels like liquefied natural gas (LNG) or compressed natural gas (CNG) (50%) between 2026 and 2030. The estimated financial investment for this transition is VND 43 Trn (USD 1.79 Bn). These routes, which connect key areas such as Mai Dong, Hanoi University of Natural Resources and Environment, Nghia Do Park, and Bat Trang, aim to enhance eco-friendly public transport options.
The plan prioritises electrifying buses operating in central urban areas (within Ring Road 4). New bus routes will also be designed to use electric and green energy vehicles. By 2030, a significant portion (70-90%) of the existing diesel bus fleet will be replaced with clean-energy buses. Transerco conducted over 3.40 million trips, transporting over 234 million passengers, or 58 % of the city's total passenger transportation volume 2024.
SAIGON HI-TECH PARK SET FOR USD 725 MN EXPANSION
The Management Board of Saigon Hi-Tech Park (SHTP) has submitted a proposal to Ho Chi Minh City People's Committee to expand the facility, incorporating the function of a science and technology park. The expansion aims to establish the park as a multidisciplinary hub for sci-tech that will foster the technological capabilities of those living in the city’s eastern region.
The expansion will cover almost 195 hectares, with a total estimated investment of USD 724.6 Mn. This includes around USD 525 Mn allocated for land compensation, clearance, and resettlement, and USD 175 Mn for infrastructure construction, with the rest going on additional costs. The funding will come from Ho Chi Minh City’s budget and central government support, with a request for the latter to contribute 30 % of the total investment; in addition, the city plans to mobilise private sector resources for developing fee-based, specialised infrastructure.
The undertaking is scheduled for implementation between 2025 and 2033. The municipal authorities develop institutional frameworks for the High-Tech Park and the science and technology park, aligning them with sustainable and innovative urban models that meet Asian standards. SHTP has enticed investments from more than 10 global tech giants, including Intel, Jabil, Rockwell (US), Nidec, Nipro, NTT (Japan), Samsung (South Korea), Sanofi (France), and TTI (Germany), among others. The park currently hosts more than 160 active projects with a total investment value surpassing USD 12.3 Bn.
EVM, SOLARVEST AND PECC2 TO ENHANCE RENEWABLE ENERGY IN VIETNAM
Saigon Jim Brother’s Corporation (EVM), Solarvest (Vietnam), and Power Engineering Consulting Joint Stock Company 2 (PECC2) have signed a memorandum of understanding (MoU) to accelerate the adoption of renewable energy in Vietnam. This collaboration focuses on leveraging the Direct Power Purchase Agreement (DPPA) Mechanism via National Grid to supply a large amount of green electricity by Solarvest and PECC2 to EVM’s operations in Vietnam, playing a part in facilitating sustainable energy projects and drive Vietnam’s clean energy transition.
The Vietnamese Government issued Decree 80/2024/ND-CP regulating the mechanism for direct power purchase agreement (DPPA) between renewable energy generators and large electricity consumers. The DPPA through the national grid, also known as the virtual DPPA, is the option selected by the parties under this MOU. This mechanism allows EVM, who has substantial renewable energy needs, to access a utility-scale renewable energy generating source, a solar farm project, with electricity purchases made through the national grid.
EVM, Solarvest and PECC2 recognize that this DPPA Mechanism presents a unique opportunity to overcome barriers to renewable energy adoption, including accessible, regulatory, financial, and technical challenges. Solarvest brings years of experience in clean energy development, with over 1,300MW of renewable energy projects across Asia-Pacific.
FEBRUARY 2025
KEY TRANSPORT PROJECTS TO RESHAPE HO CHI MINH CITY IN 2025
The Government of Ho Chi Minh City has announced plans for transformation in 2025 with the completion of major transport projects aimed at easing congestion and improving regional connectivity in Vietnam. Key infrastructure, including the Tan Son Nhat Airport Terminal 3, new road expansions, and the Ring Road 3, are poised to revolutionize the city’s traffic landscape. Terminal 3 will increase passenger capacity significantly, handling 20 million passengers annually. Additionally, the Tran Quoc Hoan-Cong Hoa Connector and National Highway 50 expansion will streamline airport access and improve traffic flow in southern Ho Chi Minh City.
As one of Vietnam’s most ambitious infrastructure projects, Ho Chi Minh City’s Ring Road 3 is making significant progress. Nhon Trach Bridge (USD 275 Mn) – a key structure linking Ho Chi Minh City and Dong Nai Province. The bridge is being constructed ahead of schedule and is expected to open on April 30, 2025.
Once finished, Ring Road 3 will be a vital regional connector, enhancing links between Ho Chi Minh City, Binh Duong, Dong Nai, and Long An. The project will also improve access to Long Thanh International Airport, reducing travel times and congestion in the eastern districts.
THACO TO EXPLORE DOMESTIC HIGH-SPEED TRAIN PRODUCTION IN VIETNAM
Thaco to explore domestic high-speed train production to reduce reliance on foreign suppliers and strengthen the railway sector in Vietnam. The High-Speed Train Production project spans 1,541 km, covering 20 provinces across Vietnam. With 23 passenger stations and five cargo terminals, it aims to enhance national connectivity. The Authorities target project completion by 2035 while prioritizing local technological development.
The government backing for railway expansion, emphasises local technological self-sufficiency. Authorities require foreign contractors to integrate Vietnamese materials and services, while major domestic firms, including Hoa Phat and Deo Ca Group, have expressed interest in key infrastructure roles. The initiative aligns with Vietnam’s goal of fostering industrial growth and transport modernisation.
OVER USD 13.7 BN NEEDED TO UPGRADE VIETNAM'S PORT SYSTEM
Vietnam will need an estimated VND 351.5 Trn (USD 13.76 Bn) to upgrade its port system by 2030, according to a detailed plan for seaports, terminals, quays, mooring buoys, and water zones for the 2021-2030 period, with a vision to 2050. The plan targets around 33,800 hectares of land for port development by 2030, including the Can Gio international transshipment terminal and related industrial and logistics zones. Of this total, 17,300 hectares will be dedicated to port operations. The water surface usage demand is estimated at 606,000 hectares.
It prioritizes investments in key maritime projects such as constructing the Van Uc River-Nam Do Son channel, upgrading and expanding the Hai Phong maritime channel, and dredging channels to ports in the Cam Pha area and Hon Net transshipment anchorage to accommodate vessels of up to 200,000 DWT.
HANOI METRO PARTNERS TO ADVANCE ALL-ELECTRIC PUBLIC TRANSPORT
Hanoi Metro has signed a Memorandum of Understanding (MoU) with key players in Vietnam’s green transport sector to develop an all-electric public transit model. Hanoi Metro will collaborate with Xanh SM, VinBus, FGF, and V-Green to create a seamless door-to-door transport system integrating electric metro lines, taxis, motorbikes, and buses.
Hanoi Metro will collaborate with Xanh SM, VinBus, FGF, and V-Green to create a seamless door-to-door transport system integrating electric metro lines, taxis, motorbikes, and buses. Hanoi Metro’s ticketing system and Xanh SM’s ride-hailing services will be integrated into the VinBus platform, enabling passengers to plan entire journeys within a single app. High-traffic metro stations will also have designated Xanh SM pick-up and drop-off points to improve connectivity.
To encourage green mobility, the companies will launch a unified promotional programme offering discounts for passengers using multiple electric transport services. Hanoi Metro will work with FGF to explore electric vehicle rental points at metro stations and collaborate with V-Green to expand charging infrastructure. The partnership is a step toward building a sustainable, energy-efficient transport ecosystem. The initiative aims to reduce emissions and support Hanoi’s transition to a greener, more sustainable future.
CONSTRUCTION STARTS AT BAC AI PUMPED-STORAGE HYDROPOWER PLANT
The Bac Ai pumped storage hydropower plant in Ninh Thuan province was approved under the National Power Development Plan for 2021–2030, with a vision towards 2050. The plant consists of 1,200 MW including 04 turbine/pump-generator/engine units with a capacity of 300 MW per unit.
The total amount invested in the Bac Ai plant comes to about VND 21 Trn (USD 828 Mn), sourced from loans and EVN’s allocated funds. The first generating unit is expected to begin operation by the end of 2029, and unit 4 will be completed around a year later, with full completion scheduled by early 2031. With the characteristics of the Ninh Thuan and Binh Thuan provinces, which have renewable energy projects (solar power, wind power) and in the future, nuclear power plants, the operation of Bac Ai pumped storage hydropower plant will contribute to regulating capacity and stabilising the power source in the region.
HO CHI MINH CITY APPROVES USD 2.4 BN PLAN FOR FOUR KEY GATEWAY ROADS
Ho Chi Minh City has approved four Build-Operate-Transfer (BOT) projects aimed at upgrading key gateway roads, including National Highways 1, 13, 22, and the North-South axis road. The total investment for these projects is approximately USD 2.4 Bn, with road expansions reaching up to 12 lanes.
The National Highway 13 expansion project, spanning from Binh Trieu Bridge to Vinh Binh Bridge, will include a 3.2-kilometer elevated section with four lanes, increasing the total road capacity to ten lanes. The estimated cost for this project is around USD 827 Mn, with approximately USD 237 Mn coming from private investors and the rest funded by the state budget.
The National Highway 22 upgrade, covering the section from An Suong Interchange to Ring Road 3, will be expanded to ten lanes, with a total investment of USD 413 Mn. Of this, approximately USD 166 Mn will be sourced from private investors, while the remaining will come from the city’s budget.
The National Highway 1 expansion, extending from Kinh Duong Vuong Street to the Long An provincial border, will increase to 10-12 lanes over a nearly 10-kilometer stretch. This project will cost an estimated USD 645 Mn, with more than USD 380 Mn funded by the government and the rest by private sector investors.
The North-South axis road upgrade, stretching 8.6 kilometers from Nguyen Van Linh Street to the Ben Luc - Long Thanh Expressway, will cost around USD 392 Mn with more than USD 185 Mn from the state budget and the remainder from private investors.
All four projects will incorporate elevated road sections or high-speed urban corridors to improve traffic flow and cater to different transportation needs. For high-speed travel, an elevated expressway with four lanes will be constructed, allowing vehicles to travel at speeds of up to 80 km/h, enabling seamless movement between the city center and major highways or ring roads. In contrast, ground-level roads will be expanded to 6-8 lanes, ensuring smoother traffic flow within urban areas and improving local commuting conditions. A unique feature of these BOT gateway projects is the toll collection model. Fees will only apply to vehicles using the express lanes on elevated roads.
HCMC - TRUNG LUONG - MY THUAN EXPRESSWAY TO BEGIN EXPANSION IN Q2 2025
The government has approved the expansion of the HCMC - Trung Luong - My Thuan Expressway, with construction set to begin in the Q2 2025. The project, implemented under a Public-Private Partnership (PPP) model, aims to improve traffic flow and boost economic connectivity in southern Vietnam.
Under this plan, the section from HCMC to Trung Luong will be expanded from four lanes to eight, while the Trung Luong - My Thuan segment will be widened from a restricted four-lane design to six lanes. The feasibility study, prepared by the consortium of Deo Ca - CII - Tasco, recommends dividing the project into two components:
Component 1: Expansion of the entire expressway under the PPP model. This includes widening the HCMC - Trung Luong section to eight lanes with two emergency stopping lanes and the Trung Luong - My Thuan section (including My Thuan 2 Bridge) to six lanes with two emergency stopping lanes. The total investment for this component is estimated at VND 42.063 Trn (USD 1.7 Bn).
Component 2: Land clearance for the future completion of a 10-12 lane expressway on the HCMC - Trung Luong section, financed through public investment at an estimated cost of VND 6.968 Trn (USD 283 Mn) Strategic importance of the expressway.
The HCMC - Trung Luong - My Thuan Expressway is a vital section of Vietnam’s North-Southeastern Expressway, stretching over 90 kilometers. The HCMC - Trung Luong segment, spanning 40 kilometers, was completed and opened to traffic in 2010 with a four-lane configuration. The Trung Luong - My Thuan section, measuring 51 kilometers, was inaugurated in 2022, also with four lanes. The upcoming expansion project aims to enhance traffic capacity, reduce congestion, and boost economic development in the Mekong Delta region.
MARCH 2025
SEMBCORP BEGINS CONSTRUCTION ON SIS DINH VU LOGISTICS CENTRE
DEEP C Haiphong 1 Industrial Zone, Sembcorp Dinh Vu Infra Services Co., Ltd. officially broken ground on the Sembcorp Logistics Park Dinh Vu (SIS Dinh Vu) warehouse and ready-built factory for lease initiative.
Sembcorp begins construction on SIS Dinh Vu logistics centre. This is the fifth construction venture of Sembcorp in Haiphong. Upon completion, the initiative will bring more than 90,000 square metres of modern industrial real estate to Vietnam's supply chain. The project has a total land area of 15 ha and a total investment capital of more than USD 50 Mn. The venture is expected to operate phase 1 from the Q3 2025. The initiative integrates various modern features, including automatic fire protection systems, raised floors with large floor loads, high ceilings and 24/7 direct security management.
At DEEP C Industrial Zones, the five current industrial zones operating in Haiphong and Quang Ninh all share the goal of becoming ecological industrial zones, resilient to climate change, bringing benefits to secondary investors and local communities, and contributing to local socio-economic growth.
By the end of 2024, DEEP C Industrial Zones in Haiphong had attracted 152 projects with a total registered capital of USD 4.7 Bn, including 95 FDI projects with a total capital of USD 3.9 Bn and 57 domestic direct investment (DDI) projects with a total capital of USD 799 Mn.
VIETNAM PROVINCE PROPOSES USD 432 MN AIRPORT EXPANSION PPP
The People's Committee of Quang Nam Province has proposed an estimated investment of VND 11 Trn (USD 432 Mn) to upgrade Chu Lai Airport, aiming to increase its capacity to 10 million passengers per year. The provincial government sought approval to oversee the investment process for the project under the Public-Private Partnership (PPP) model.
The central government has already approved the development of Chu Lai Airport through the PPP framework, granting the province the authority to attract investors and manage operations. Quang Nam authorities are expediting the feasibility study process. Once the airport’s construction plan is officially approved, they aim to submit the feasibility report for immediate assessment and approval.
Quang Nam authorities submitted a proposal for the socialization of investment and operation at Chu Lai Airport. The plan includes constructing a new runway and a passenger terminal capable of handling 10 million passengers annually.
PETROLIMEX, ADB COLLABORATE ON ENERGY TRANSITION
The Vietnam National Petroleum Group (Petrolimex) and the Asian Development Bank (ADB) have signed a memorandum of understanding (MoU) to advance energy transition efforts. Under the agreement, ADB will support Petrolimex in assessing its investment portfolio and developing a strategy for cleaner energy solutions. The collaboration aligns with Vietnam low-carbon goals and ADB’s 2023-26 strategy focused on governance, green economy transition, and private sector growth.
Petrolimex, which controls 50% of Vietnam’s fuel market and operates over 5,000 fuel stations, aims to become a leader in green energy by 2025. The company is exploring green hydrogen production and sustainable aviation fuel, supporting Vietnam’s net-zero commitment by 2050. ADB continues to assist Vietnam with sustainable urban development, climate resilience, and governance reforms
VIETNAM PLANS 6,000 MW OFFSHORE WIND POWER BY 2030-2035
Vietnam targets to add 6,000 MW of offshore wind power to its masterplan by 2030 and put the related projects into operation in 2030-2035. Vietnam aims to have 113,503-139,097 MW of offshore wind power by 2050.
The country also plans to develop offshore wind energy and other renewables, including solar power, nearshore wind power, and land-based wind power, to manufacture new energy (green hydrogen and ammonia), serving both the domestic and export markets. The country targets 15,000 MW of offshore wind power in 2035 and 240,000 MW in 2050 for new energy production.
The project will be executed on Hon Trau Island, 10 kilometres off the coast of De Gi estuary. The project is designed to have a capacity of 2,000 MW and be implemented in three phases. Some 50 turbines are slated to be installed in each phase.
VIETNAM AIMS TO COMPLETE 1,188KM OF EXPRESSWAYS IN 2025
Vietnam is accelerating its national expressway expansion, with 1,188 kilometres of expressways set for completion in 2025, as part of its broader goal to reach 3,000km of expressways nationwide. The Vietnamese government is focusing on transport connectivity to support its 2025 GDP growth target of at least 8%.
The government highlighted the need to accelerate public investment in expressways, as well as major airport and port projects, to stimulate national and regional development. The expressway expansion is part of a larger infrastructure scheme that includes 1,000km of coastal roads and critical airport projects such as Long Thanh International Airport in southern Dong Nai Province and the T3 terminal at Tan Son Nhat International Airport in Ho Chi Minh City.
The government is also committed to ensuring that expressway connectivity extends from Cao Bang Province in the north to the southernmost province of Ca Mau, improving trade and logistics across the country. According to the Ministry of Transport, 1,188km of expressways are currently under construction with a target completion date of 2025. Of them, 16 projects spanning a combined length of 786km are on track, with potential for early completion by 3-6 months. However, 12 projects with a total length of 402km face challenges related to land clearance and material supply, requiring intensified efforts to meet the 2025 deadline.
The Ministry of Transport approved investment adjustments for the Ben Luc-Long Thanh expressway project connecting Dong Nai with southern Long An Province, submitted a proposal for the north-south high-speed railway project, and finalized adjustments for the Long Thanh International Airport's phase one.
HANOI PLANS USD 2.5 BN METRO LINE TO OUTSKIRT
The Hanoi Metropolitan Railway Management Board (MRB) has been assigned to prepare for investment in the capital city’s metro line No.5, which runs between Van Cao - Ngoc Khanh - Lang - Hoa Lac. The Department of Planning and Architecture is going to work with the Department of Construction, the MRB and Hanoi Urban Planning Institute to devise a detailed plan for the metro line.
The design will be on the 1:500 scale, taking into account the planning for TOD (transit-oriented development) and areas surrounding the stations to ensure land funds for urban development bidding. The MRB will also ensure that the metro line plan complies with existing regulations and Hanoi’s mid-term public investment for 2021-25. The city's authorities also aim to begin construction of the line in 2025.
The total investment for the project is estimated at more than VND 65 Trn (USD 2.5 Bn). Hanoi’s metro line No 5 has a total length of 38.43km, consisting of 2km elevated, 6.5km underground and 29.93km at ground level. The line will pass through the city’s inner districts of Ba Dinh, Dong Da, Cau Giay, Nam Tu Liem and the outer districts of Hoai Duc, Quoc Oai and Thach That.
The number of trains operating on the line is expected to increase from 25 to 40 between 2025-50, with a standard speed of 120km/h (90km/h for underground sections). The metro line No 5 will contribute to the public transport network and help address the increasingly severe traffic congestion and environmental pollution.
VINGROUP AIMS TO BEGIN USD 9 BN CAN GIO SEA RECLAMATION PROJECT IN 2025
Vietnam's biggest conglomerate Vingroup is seeking permission to begin work next month on a USD 9 Bn real estate project in a southern coastal area home to a UNESCO-listed mangrove forest. The project in Can Gio -- on the outskirts of Ho Chi Minh City - attracted rare criticism when it was approved in 2020 from academics and environmental experts, who worried about its proximity to the area's biosphere reserve.
The Can Gio Sea Reclamation Urban Development project envisions itself as a coastal tourism hub that features hotels, a smart city and residential areas across an area of 2,870 hectares (7,090 acres). It should be able to accommodate 230,000 residents and attract nine million tourists annually once completed. The development area is located some 18 kilometres (11 miles) from the Can Gio Mangrove Biosphere Reserve, regarded as the "green lungs" of vast metropolis Ho Chi Minh City. The mangroves absorb carbon dioxide and other polluting agents on a daily basis and contain a high diversity of plant and animal species.
HO CHI MINH CITY TO START CONSTRUCTION ON METRO LINE 2
Ho Chi Minh City plans to complete the feasibility study approval and contractor selection for Metro Line 2 (Ben Thanh – Tham Luong) by December 2025. This information was detailed in a report by the Department of Transport, outlining the implementation plan for Resolution No. 188 of the National Assembly. This resolution introduces special mechanisms and policies to accelerate the development of the city's urban railway network.
Under the metro development plan, Ho Chi Minh City aims to simultaneously invest in and complete seven metro lines covering 355 kilometres over the next decade, with an estimated budget of USD 40.2 Bn. By 2045, the total metro network is expected to expand to 510 kilometres. Future metro lines will feature increased underground sections to reduce land clearance costs, accelerate construction, and optimize urban underground space following the Transit-Oriented Development (TOD) model.
The city has outlined a roadmap involving multiple workstreams to ensure effective execution under the new policy framework. These include establishing legal frameworks, preparing investment plans, managing project execution, strengthening the organizational structure of metro management agencies, and developing human resources for urban rail operations.
For Metro Line 2 (Ben Thanh – Tham Luong) specifically, the city is prioritizing procedural completion to initiate construction by late 2025. The roadmap includes reviewing and transitioning project funding from Official Development Assistance (ODA) to public investment by April 2025. Metro Line 2, initially approved in 2010, spans 11 kilometers across six districts (Districts 1, 3, 10, 12, Tan Binh, and Tan Phu), with nine underground stations and one elevated station. The original completion date was set for 2026, but due to delays, the timeline has been revised to 2030. The project’s budget has also increased VND 26 Trn (USD 1.3 Bn) and VND 47.9 Trn (USD 2.1 Bn).
VINGROUP PROPOSES USD 4 BN METRO LINE FOR HO CHI MINH CITY
Vietnamese conglomerate Vingroup proposed to build a USD 4 Bn metro line linking District 7 with Can Gio District in Ho Chi Minh City, boosting the city's transportation infrastructure. The proposed metro would stretch over 48.5 kilometres, running from Nguyen Van Linh Avenue in bustling District 7 to the coastal district of Can Gio, renowned for its tourism potential and lush mangrove forests.
The project includes two depots, one in District 7 and another in Can Gio. Once operational, the metro line is expected to handle up to 40,000 passengers per hour in each direction. The total cost of the project is estimated at around VND 102.37 Trn (USD 4.09 Bn). Vingroup intends to finance the metro through a Public-Private partnership (PPP) and a build-own operate (BOO) model, leveraging its own capital alongside other funding sources.
Preparatory work, including the pre-feasibility study and urban planning integration, is expected to begin this year. Construction could commence in 2026, with trial operations expected by 2028. Can Gio District, approximately 50 kilometers from downtown HCMC, features over 71,300 hectares of land, including expansive mangrove forests, rivers and beaches along its 23-kilometer coastline. The metro project aligns with the city's vision to transform Can Gio into a premier tourism hub.
HCMC is targeting the completion of seven metro lines totaling 355 km by 2035, with plans for three additional lines by 2045. The total projected investment for these 10 lines is approximately USD 67 Bn.
BANPU NEXT AND SOLARBK ESTABLISH JV TO INSTALL 390 MW OF ROOFTOP SOLAR SYSTEMS IN VIETNAM
Banpu NEXT, a leading Net Zero Solutions provider in the Asia-Pacific region, and SolarBK, a leading clean energy company in Vietnam, have established a joint venture company, providing solar power development to the commercial and industrial (C&I) sector in Vietnam. The joint venture between Banpu NEXT and SolarBK has been set up under the shared vision and cooperative spirit of both companies that aims to expand the scale and model of providing renewable energy solutions to businesses and communities.
In the initial phase, this JV targets to install at least 390 MW of rooftop solar systems and offer a full range of clean energy solutions to businesses that want to transition to cleaner and smarter energy, especially manufacturing and export businesses, industrial estates, and high- tech businesses such as data centers.
VIETNAM UNVEILS NATIONAL ACTION PLAN TO BOOST RENEWABLE ENERGY EXPANSION
Vietnam has launched its National Action Plan for Circular Economy (NAPCE) until 2035 approved under Decision No. 222/QĐ-TTg on January 23, 2025, prioritizing the expansion of renewable energy as a key driver of sustainable economic growth. The plan underscores the country’s commitment to reducing dependence on fossil fuels and increasing the share of clean energy in its national grid.
Vietnam aims to generate 50% of its total energy from renewable sources by 2045. As part of this transition, the government is ramping up investments in solar, wind, biomass, and waste-to-energy projects. The plan sets an intermediate target of increasing renewable energy’s share to 47% of the country’s total primary energy mix by 2035.
To achieve these goals, Vietnam is expanding its renewable energy capacity, with a particular focus on:
Biomass and solid waste-based power plants: Targeting a total installed capacity of 2,270 MW.
Waste-to-energy projects: Scaling up initiatives to convert non-recyclable waste into electricity.
Smart grid development: Enhancing energy distribution efficiency and integrating decentralized renewable sources.
SATS, VIETNAM AIRLINES TO DEVELOP AIR CARGO TERMINAL
Singapore-based SATS and Vietnam Airlines (VNA) signed a Memorandum of Understanding (MoU) to build and operate an air cargo terminal at the new Long Thanh International Airport (LTIA) in Vietnam. The two companies will also collaborate on strategic initiatives, including enhancing the support of ground and cargo handling services across VNA’s international network.
LTIA, located 35 kilometres from Ho Chi Minh City in Dong Nai province, is being constructed to alleviate congestion at Tan Son Nhat International Airport. LTIA is due to launch operations in phases, with Phase 1 expected to commence operations by the second half of 2026. It will have the capacity to handle up to 25 million passengers and 1.2 million tonnes of cargo annually; and it will eventually expand to its full capacity of 100 million passengers and 5 million tonnes of cargo by 2050.
The collaboration will combine SATS’ air logistics expertise and global network with VNA’s plans to launch Vietnam’s first all-freighter airline, positioning both companies as pivotal contributors to the country’s growing airfreight and logistics sector. The MoU seeks to expand the existing cooperation between the two organisations in ground and cargo handling services across VNA’s international network. This includes efforts to co-develop customised airfreight and logistics solutions, such as trucking and middle mile services, through SATS and its strategic alliances.
BINH DUONG–HO CHI MINH CITY METRO CONSTRUCTION TO BEGIN IN 2027
Binh Duong province's first metro line, connecting Binh Duong New City to Ho Chi Minh City's Suoi Tien, is expected to start construction in 2027 and be completed in 2031. The metro will involve S1 Station in Binh Duong New City centre, Hoa Phu ward, and Thu Dau Mot city. The ending point connects with Suoi Tien Station of Ho Chi Minh City's Metro Line 1.
This line will span 32.4km, which includes a depot connecting section, and will pass through Tan Uyen, Thu Dau Mot, Thuan An, and Di An. With an estimated investment capital of USD 2.52 Bn, the metro line is set to feature 19 stations and with a designated speed of 120km/h.
Once completed, the venture will improve connectivity with Ho Chi Minh City, ease traffic congestion, and create growth drivers for local socioeconomic development. Binh Duong is considering utilizing official development assistance alongside budget capital to implement the construction of the first urban railway project in the locality.
CONSTRUCTION WORKS BEGIN ON USD 90 MN HON LA INTERNATIONAL PORT
Quang Binh province has broken ground on VND 2.3 Trn (USD 90 Mn) in Quang Trach district, the central province of Quang Binh on March 21, aimed to bolster socio-economic development in the locality and the region. The port, spanning over 39 hectares, will not only serve the Hon La Economic Zone and industrial parks in the province but also facilitate cargo transfers with Laos, Thailand’s northeastern region, Myanmar, and economic zones in the vicinity.
The project is set to be carried out in two phases:
The first one involves the construction of two berths with a combined length of 470 metres, able to accommodate cargo vessels up to 50,000 tonnes and bulk carrier up to 70,000 tonnes. The annual capacity is estimated at 3 million tonnes.
The second one, scheduled for 2027, will add two more berths, 500 metres in total length. The facilities will handle vessels up to 100,000 DWT and double the port’s annual capacity to 6 million tonnes.
The port features comprehensive planning with modern warehouses, logistics areas, and technical facilities. Its strategic location in the sheltered Hon La bay, protected by Hon Co and Hon La islands, provides ideal natural depth for large vessels.
HO CHI MINH CITY PROPOSED TO BUILD USD 3.5 BN RAILWAY CONNECTING TWO AIRPORTS
The Ministry of Construction has proposed to the Prime Minister that Ho Chi Minh City take charge of developing the Thu Thiem - Long Thanh urban railway project, estimated at USD 3.5 Bn. The project aims to enhance connectivity between Tan Son Nhat International Airport and Long Thanh International Airport.
The two main railway lines are outlined:
The first, Metro Line 6, will connect Tan Son Nhat International Airport to the Thu Thiem-Long Thanh railway at Phu Huu junction and continue to Long Thanh International Airport.
The second, Metro Line 2, will link Tan Son Nhat directly to Thu Thiem Station and then share infrastructure with the Thu Thiem - Long Thanh line to reach Long Thanh Airport.
HCMC’s urban planning has already designated Metro Lines 6 and 2 as key investment projects under the city's management. The Ministry of Construction is currently responsible for the Thu Thiem - Long Thanh railway project.
The proposed Thu Thiem - Long Thanh railway line will span approximately 42 kilometers, featuring a dual-track system with a gauge of 1,435 mm and a design speed of 120 km/h. The line will consist of 20 stations, transporting both urban and suburban passengers from HCMC and Dong Nai Province to Long Thanh International Airport.
The Thu Thiem - Long Thanh urban railway is expected to play a critical role in addressing the rising demand for transportation between the two international airports. It will also improve regional connectivity, enhance economic development, and support the sustainable growth of HCMC’s urban infrastructure.
List of Key Transactions - Q1 2025
Source: YOG INFRA analysis
ABOUT YOG INFRA
Our objective is to drive economic growth and make positive social impact through sustainable infrastructure development.
YOG INFRA is an infrastructure focused financial advisory firm. We work with Developers and Development Finance Institutions (DFIs) and help them make informed investment decisions across infrastructure development lifecycle.
With our offices in Singapore, India and UAE, we work on projects globally, and the team brings strong experience in supporting development of infrastructure projects.
For more information about us, our service offerings and team, please visit www.yoginfra.com Contact us at info@yoginfra.com
©2025 YOG INFRA. All rights reserved.
Comments