Vingroup Corporation has just sent a document to the Ho Chi Minh City Department of Finance reporting on the proposed investment in a high-speed urban railway project connecting the city center with Can Gio district.

Accordingly, Vingroup said that investment in the form of PPP (public-private partnership) has many advantages over traditional public investment when considering factors such as investment preparation costs, ability to attract capital, technology, investor management skills and project implementation ability.

In the PPP model, the cost of investment preparation is often shared between the public and private sectors. The private investor will participate in the planning, design and evaluation of the project, helping to reduce the financial burden on the state. In addition, private participation can optimize costs thanks to experience and efficiency in management.

In contrast, if the project is a public investment, the entire investment preparation cost is usually borne by the state, from feasibility studies, design to planning. This can increase the budget burden, especially in the context of limited public resources.

According to the group, PPP investment will take advantage of capital from the private sector, including domestic and international capital, helping to reduce pressure on the budget. Private investors can mobilize capital through bank loans, bond issuance or equity capital, increasing flexibility in project financing.

"In terms of technology, private investors often bring advanced and modern technology to ensure the efficiency and profitability of the project. This is especially important in areas such as infrastructure, energy or healthcare, where technology plays a key role," said a Vingroup representative.

In terms of project implementation, private participation helps speed up project implementation thanks to profit incentives and effective management capabilities. PPP contracts often bind specific responsibilities, minimizing delays or budget overruns...

Therefore, Vingroup proposes that investing in projects under the PPP form will be superior to public investment in terms of diverse capital mobilization, application of modern technology, professional management and effective project implementation.

Vingroup proposed that if the project is invested in the form of PPP, it will be superior to public investment. Photo: Hoang Trieu

Notably, for this mega project, billionaire Pham Nhat Vuong's Vingroup Corporation proposed applying the BOO (build - own - operate) contract form. Vingroup will be responsible for arranging all capital to carry out investment, construction, management and operation throughout the project's duration on the basis of ensuring compliance with legal regulations.

According to preliminary statistics, the project has a total investment of about 102,370 billion VND (equivalent to about 4.09 billion USD). This urban railway line will be invested in a double-track scale, 1,435mm gauge, electrified with a main line length of about 48.5km, infrastructure designed for a speed of 250km/h; 2 stations are expected to be located in Can Gio and District 7.

Passenger transport capacity meets 30,000 - 40,000 people/direction per hour, connecting the center of Ho Chi Minh City to Can Gio. Perspective image of high-speed railway to Can Gio

During its development, Vingroup has implemented many large-scale projects with a total investment of over VND100,000 billion. Vingroup said it wants to contribute more to the country in general and Ho Chi Minh City in particular, as well as to help improve the city's transportation system.

"Investing in high-speed urban railway will create a boost, an explosion for tourism development, investment and more convenience for people and tourists by shortening travel time from the center to Can Gio. We hope to be considered and approved to implement the project" - Vingroup representative analyzed.

The Ho Chi Minh City Department of Finance is the unit assigned by the Ho Chi Minh City People's Committee to preside over and coordinate with relevant units to guide investors in implementing the procedures for preparing project proposal documents under the PPP method. At the same time, it will organize the appraisal of the proposal documents of Vingroup Corporation on investing in a high-speed urban railway connecting the center with Can Gio district and advise the City People's Committee.

Previously, at the conference announcing the general planning of Ho Chi Minh City for the period 2021-2030, with a vision to 2050, the Prime Minister suggested that Vingroup build a metro system from the center of Ho Chi Minh City to Can Gio district. The group then started implementing and received great consensus and support from the people as they hoped to gradually reduce the travel time from Ho Chi Minh City to Can Gio, both helping to develop tourism and protecting the biosphere reserve.

Source: https://nld.com.vn/vingroup-cua-ti-phu-pham-nhat-vuong-cam-ket-bo-tri-von-va-cong-nghe-lam-duong-sat-do-thi-can-gio-196250423124941242.htm