Five New Rail Lines to be Built in Southern Region

Updated: Dec 29, 2020

Five new high-speed rail lines between Ho Chi Minh City (HCMC) and southern provinces are expected to be built by 2025, with the target of ensuring smooth transport of goods, improving logistics services and acting as connections between major seaports.

Source: Hoach Le Dinh, Unsplash

The revenue growth rate of logistics services in the city is expected to reach 15% by 2025 and 20% by 2030. The ratio of national logistics costs over the national GDP will be reduced by 10-15% by 2025.


Despite the positive trends of the sector, challenges are still looming large. High costs in the logistics sector still remain an unsolved problem for related stakeholders such as manufacturers, freight carriers, shippers, etc. One of the major reasons for the high costs is the traffic congestion on roads between cities and provinces in the southern region, which lengthens travel time. For example, in the seafood sector, extended travel time can affect the quality of the products; thus, businesses incur more expenses for refrigerated storage.


The implementation of five new rail lines has demonstrated huge improvement in transportation and infrastructure in the Southern region of Vietnam, paving the way for the movement of goods. It is undeniable that enormous economic values can be derived from transportation and infrastructure investment throughout the annals of history. Are you an investment enthusiast? Contact the Broad Avenue Team and let our experts share with you the insights to catch the best business opportunities in Vietnam ahead of time.




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