Vinhomes' Board of Directors recently approved participation in an investment and business cooperation with VinSpeed High-Speed Railway Investment and Development Joint Stock Company. The two parties will jointly invest in, construct, operate, and conduct business for the Hanoi - Quang Ninh high-speed railway project.

This railway line spans 120 km, passing through four provinces and cities: Hanoi, Bac Ninh, Hai Phong, and Quang Ninh. The total investment capital is estimated at nearly 150 trillion VND. Construction for the project commenced in March this year, with completion anticipated in 2028. Upon completion, travel time between Hanoi and Quang Ninh is expected to significantly shorten from two hours to 23 minutes.

According to the resolution, Vinhomes will contribute a maximum of 85% of the project's total investment, after deducting the capital VinSpeed mobilizes from third parties. This capital contribution from Vinhomes will not exceed 35% of the company's total assets as recorded in its latest financial statement. In return, Vinhomes is set to receive 85% of the project's EBIT (earnings before interest and taxes), after further deducting accrued interest expenses and profits distributed to other partners.

Illustration of VinSpeed's Hanoi - Quang Ninh high-speed train. Image supported by AI

Both Vinhomes and VinSpeed are companies within the ecosystem of billionaire Pham Nhat Vuong's group. VinSpeed was established in May 2025, with an initial charter capital of 6 trillion VND. By the end of last year, its charter capital had increased to 45 trillion VND. Billionaire Pham Nhat Vuong holds 51% of the capital, with Vietnam Investment Group (VIG) holding 35%, Vingroup 10%, and 1% of shares belonging to his two sons, Pham Nhat Quan Anh and Pham Nhat Minh Hoang.

In addition to the cooperation with VinSpeed, the Vinhomes Board of Directors also approved joining a joint venture with SGC Investment and Construction Joint Stock Company. This partnership aims to sign design and construction contracts for both the Ben Thanh - Can Gio and Hanoi - Quang Ninh railway projects. The estimated contract value for the Ben Thanh - Can Gio project is 43.755 trillion VND, while the Hanoi - Quang Ninh railway project's is 73.373 trillion VND.

Anh Tu