Vietnam on Saturday announced plans to build a $67-billion (€63-billion) high-speed railway from the northern capital, Hanoi, to Ho Chi Minh City in the south.

The Vietnamese government said it hopes the much-needed boost to infrastructure can drive growth and raise Vietnam's reputation among foreign investors.

What we know about the plan

"The national assembly voted to approve... a resolution on investment policies for the high-speed railway project on the North-South axis," said a statement on the Vietnamese parliament's website.

The railway is planned to stretch more than 1,500 kilometers (930 miles) from the capital in the north to the country's business hub, formerly known as Saigon, in the south.

Construction is expected to start in 2027, with Vietnam hoping that the first trains will operate by 2035. However, the country has been dogged by delays on previous infrastructure projects.

Due to the difficult terrain, 60% of the route will run over bridges. Another 10% will run through tunnels, and only 30% is planned to be at ground level. Financing for the project is still unclear.

The route is expected to pass through 20 provinces and cities, with 23 passenger stations and five freight stations along the way. State media said the trains would transport both people and goods and also service defense needs.

Need for north-south corridor

The project would reduce the current journey time by rail from 30 hours to around five.

Deputy Minister of Transport Nguyen Danh Huy said studies had highlighted a need for faster options on the north-south corridor.

"This project is pivotal for restructuring transport shares and serves as a cornerstone for Vietnam's leap into a new era of growth," he said.

Vietnam's transport infrastructure is considered relatively poor, with a road network struggling to meet demand and an underdeveloped rail system.

rc/sms (AP, AFP, dpa)