Rail News


October 07 , 2021

Vietnam urban rail projects fall years late as payments lag

Nikkei Asia 
October 6, 2021 (Hanoi, Vietnam)

Stalled Ho Chi Minh City line leaves Hitachi and other contractors hanging

Vietnam's first urban rail projects have fallen years behind schedule as payments to contractors are held up by risk-averse political decision-making.

Construction began in 2012 on the first section of Ho Chi Minh City's planned rapid transit network, with service originally slated to start in 2018. But the opening of the Japanese-funded Line 1 eventually was pushed to the end of 2021, and further delays to late 2023 or 2024 are now expected.

Two lines in Hanoi -- one funded by China -- were expected to open in 2015 but have not begun service. One may open this year, while the other is expected to debut in 2023 or later.

Japanese contractors that saw the Ho Chi Minh City project as a can't-miss opportunity have contended with repeated delays.

"We hope to overcome the various problems and complete it as soon as possible," said a manager at civil engineering company Nippon Koei, which heads the consulting consortium for the rail project.


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