Hanoi, HCM City to allocate 70-80% of local budgets for metro development
Urban rail projects in Hanoi and Ho Chi Minh City are set to move forward thanks to special mechanisms and policies, and a strong commitment to utilising local budgets as the primary investment source.
Commuters are waiting for train on Nhon- Ha Noi metro line (Photo: VietnamPlus)
Hanoi (VNA) 🌜– Urban rail projects in Hanoi and Ho Chi Minh City are set to move forward thanks to special mechanisms and policies, and a strong commitment to utilising local budgets as the primary investment source.
While central government funding will provide some support, both cities are balancing their local budgets to accelerate the construction of urban rail lines. These efforts aim to alleviate traffic congestion, reduce pollution, and promote sustainable urban development.
Expanding metro networks to over 1,100 km
Hanoi’s urban rail development plan includes projects scheduled for completion before 2035, including, Line 1 (Ngoc Hoi–Yen Vien–Nhu Quynh), comprising sections from Ngoc Hoi to Yen Vien and from Gia Lam to Duong Xa; Line 2 (Noi Bai–Thuong Dinh–Buoi), covering multiple sections, including Nam Thang Long to Tran Hung Dao and an extension to Soc Son; Line 2A (Cat Linh–Ha Dong–Xuan Mai), with the Cat Linh–Ha Dong section becoming operational since November 2021 and an upcoming extension to Xuan Mai; Line 3 (Troi–Nhon–Yen So), with the Nhon–Hanoi section partially operational since August 2024. Future expansions include Hanoi Station to Yen So, Nhon to Troi, and an extension to Son Tay; Lines 4 to 8, along with a satellite line connecting Son Tay, Hoa Lac, and Xuan Mai, are also part of the pre-2035 investment plan.
Post-2035, Hanoi aims to develop additional sections, including the Tran Hung Dao–Cho Mo–Nga Tu So–Hoang Quoc Viet section of Line 2, and multiple new lines connecting key areas like Me Linh, Co Loa, and Phu Xuyen.
Meanwhile, Ho Chi Minh City’s priority projects before 2035 include Line 1 (Suoi Tien–Ben Thanh–An Ha), with the Suoi Tien–Ben Thanh section launched in December 2024; Line 2 (Cu Chi–National Highway 22–An Suong–Ben Thanh–Thu Thiem); Line 3 (Hiep Binh Phuoc–Binh Trieu–Cong Hoa–Tan Kien–An Ha); and Lines 4 to 7, covering key urban corridors and connecting the airport, central business districts, and residential zones.
After 2035, additional projects such as Line 8 (Da Phuoc–Pham Hung–Ngo Gia Tu–Saigon Station–Quang Trung Software Park–Hoc Mon–Binh My) and Line 9 (An Ha–Vinh Loc–Saigon Station–Binh Trieu) will further expand the network.
Hanoi and Ho Chi Minh City strive to put into operation 17 urban rail lines with a combined length of 752 km by 2035. (Photo: VietnamPlus)
By 2035, both cities aim to operate 17 urban rail lines with a combined length of 752 km, including 397 km in Hanoi and 355 km in Ho Chi Minh City, meeting 35-50% of public transport demand.
By 2045, an additional 355 km will be added, with Hanoi expanding by 200 km and Ho Chi Minh City by 155 km, targeting 50-60% public transport market share.
A 130 billion USD investment plan
According to the draft resolution proposed to the National Assembly, Hanoi and Ho Chi Minh City’s urban rail networks, which began construction in 2007, have faced delays due to complex regulations, investment procedures, and resource mobilisation challenges. Officials emphasise the urgent need for special policies to remove institutional barriers and accelerate investment.
Under the Urban Rail Development Plan approved by the Politburo, the total estimated investment through 2045 is 62.25 billion USD for Hanoi and 67.15 billion USD for Ho Chi Minh City, including operational and financing costs.
To fund these projects, both cities plan to raise 75-85% of the required capital from local budgets, leveraging local government bonds, official development assistance (ODA), and concessional loans. However, the Ministry of Transport has proposed additional central government support through government bond issuance.
With Vietnam targeting double-digit economic growth from 2026 to 2030, allocating 424.85 trillion VND (17 billion USD) over the next decade from central funds is deemed feasible without significantly straining the national budget.
To ensure efficient use of funds and prevent corruption, the Ministry of Transport and local governments have established strict monitoring mechanisms.
Hanoi and Ho Chi Minh City plan to mobilise 75-85% of their budgets for their urban rail development plan to 2045. (Photo: VietnamPlus)
Director of the Hanoi Department of Transport Nguyen Phi Thuong highlighted the transformational impact of urban rail, calling it a breakthrough initiative that will boost economic growth, improve mobility, and enhance environmental sustainability.
With decisive policies and a well-structured financial plan, Hanoi and Ho Chi Minh City are determined to realise their vision of a modern, efficient, and environmentally friendly public transportation system, setting a new benchmark for urban development in Vietnam./.
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