Hanoi, Vietnam – Vietnam’s railway industry, amidst competition with road and air transportation, is witnessing a resurgence with improved service quality and profitable business results. The industry, which faced significant challenges from 2019 to 2021, is now experiencing a robust revival.
According to Vietnam News Agency, the Hanoi Railway Transport Joint Stock Company (Haraco) and the Sai Gon Railway Transport Joint Stock Company have reported substantial profits. Haraco earned over 97 billion VND (Vietnamese Dong) from January to September, marking a 177.9% increase year-on-year. Similarly, the Sai Gon Railway company gained over 80 billion VND in profit, 210% more than the same period last year. These figures signify a remarkable turnaround for the sector, which was at risk of halting operations due to mounting losses in the past.
The sector’s revival is partly attributed to the introduction of five-star trains on key routes like the Hanoi – Ho Chi Minh City (Reunification Express), Sai Gon – Nha Trang, and Hanoi-Sa Pa lines. Additionally, luxury trains connecting Hanoi with Da Nang, which commenced service on October 20, have been expected to attract more passengers, particularly foreign tourists. The trains have been refurbished with elegant interior designs and equipped with new amenities, aiming to enhance the travel experience.
Hoang Gia Khanh, the General Director of the Vietnam Railway, noted the Reunification Express’s recognition by the British travel guide Lonely Planet as one of the world’s most incredible train journeys. The sector is capitalizing on this acclaim by upgrading services and introducing new technologies. Passengers can now access route information for 34 cities and provinces through QR codes and enjoy executive lounges with private boarding entrances at Hanoi Railway Station and other major stations.
Despite these advancements, Deputy Minister of Transport Nguyen Danh Huy acknowledged that the railway sector still faces competition from road and air transport. He emphasized the need for infrastructure upgrades, particularly in anticipation of the high-speed railway project. The sector aims to improve service quality in passenger and goods transport and enhance its role in the global logistics chain. It also plans to offer international freight services at eight key stations.
The Government has outlined a comprehensive action plan for railway transport development up to 2045, focusing on institutional improvements, resource mobilization, and infrastructure investment. Priority is given to the North-South high-speed railway project, with a goal to start construction on crucial sections between 2026 and 2030.
The proposed North-South high-speed railway, spanning 1,545 km with an operating speed of about 320 km per hour, is projected to cost around 58.71 billion USD. This project, passing through 20 provinces, is envisaged as the backbone of Vietnam’s railway network, signifying the country’s commitment to modernizing its transportation infrastructure.