Vietnam Launches Hanoi Urban Railway with Japanese Support

A new rail line to ease congestion

Construction has begun on a 12 kilometer urban railway linking central Hanoi with a fast growing district on the city outskirts. The project brings Japanese know how, equipment, and concessional yen loans. At a groundbreaking in early October, officials said the line is expected to extend to Noi Bai International Airport in the future. The plan includes a subway section and carries an estimated price tag of more than 35 trillion dong (about 1.3 billion dollars). Vietnam approved the core concept in 2009, then paused it for several years before deciding in December last year to restart work. The move reflects a renewed push to expand mass transit under Party General Secretary To Lam and comes as the capital seeks practical ways to cut gridlock and clean up the air.

Hanoi has expanded rapidly and now counts many millions of residents, with daily travel still dominated by motorcycles and rising numbers of cars. Streets at rush hour often slow to a crawl. Parents juggle school drop offs with commutes, deliveries get delayed, and drivers face long lines at major intersections. Public health has also become a concern as fine dust and nitrogen oxides rise with traffic. Building reliable rail service is seen as a way to move large numbers of people at predictable speeds, reduce tailpipe emissions, and make trips safer.

Why now? The case for rail in Hanoi

Rail can carry far more passengers per hour than a road lane and does not get stuck in surface traffic. A dedicated right of way, frequent trains, and clear station layouts give commuters a dependable alternative to private vehicles. When paired with feeder buses, bike parking, and walkable station areas, rail helps shorten average trip times and opens more jobs and services within a reasonable commute. For a capital city that plans to add many more lines by the 2040s, starting with a corridor that can later reach the international airport adds immediate value for daily riders and tourism.

What will the Hanoi line include and where will it run?

The new route connects the historic core to a developing zone on the northern fringe, creating a through link that eases crosstown travel. Planners expect a mix of elevated and underground sections with multiple stations in built up areas. The future extension toward Noi Bai International Airport would give travelers a consistent journey from downtown to the terminals, a capability Hanoi lacks today. While specific station names and rolling stock details will be finalized in the coming stages, authorities have signaled a focus on safety, accessibility, and integration with buses and future metro corridors.

Experience from other Vietnamese projects suggests the line will likely use modern trains with level boarding, priority seating, and spaces for wheelchairs and strollers. Platform screen doors can improve safety and help station air conditioning work more efficiently in underground sections. Digital displays, clear signage in Vietnamese and English, and contactless fare gates are also expected as standard features for a system designed to attract regular commuters and visitors.

Timeline and funding

The project history spans more than a decade. Vietnam initially secured yen loans in 2009 and prepared early works, then suspended the plan. In December last year, the government decided to resume, and in February it asked Japan to provide the lending package to move construction forward. The cost is projected at over 35 trillion dong, which aligns with recent metro construction costs in dense Asian cities. Japan International Cooperation Agency support typically combines low interest loans with technical cooperation and operator training. Vietnamese agencies will manage land acquisition, utility relocation, and local works, while Japanese and Vietnamese contractors handle specialized construction and systems integration.

Lessons from Ho Chi Minh City metro

Vietnam’s first urban metro, Line 1 in Ho Chi Minh City, opened to passengers in late December 2024 after years of work and testing. The line runs about 19.7 kilometers with 14 stations, including roughly 2.5 kilometers underground. Crowds turned out in large numbers at launch, and by June 2025 the line had already served more than 10 million riders, according to project supporters. The early response suggests that Vietnamese commuters will use rail when it is frequent, clean, and well connected. That experience provides a template for Hanoi as it builds its own network.

The Ho Chi Minh City trains include automatic stopping systems, priority seating, areas for wheelchairs, and stations designed for universal access. Construction teams used advanced tunneling methods to lessen disruption in dense neighborhoods. Underground stations employ full height screen doors to keep platforms safe and to allow efficient cooling. The operator received capacity building assistance from Japanese partners, including help with maintenance procedures, training plans, and customer service practices. These features do not just make riding pleasant. They support reliable operations and lower life cycle costs when paired with proper maintenance funding.

There have been challenges too. Japanese companies reported delays in receiving some construction payments on the Ho Chi Minh City project. Vietnamese and Japanese officials have discussed the issue and emphasized the need to keep reimbursements timely so that contractors and suppliers can deliver on schedule. Hanoi’s new line will benefit from those lessons if oversight bodies enforce clear payment timelines and track contract milestones closely.

At the opening of the Ho Chi Minh City line, Japan’s ambassador to Vietnam, Ito Naoki, framed the new urban railway as a beginning for a wider shift to mass transit across the country.

“We hope this will set a good precedent for urban development in Vietnam and lead to further development of the country.”

Japan Vietnam partnership behind the project

Japan and Vietnam have steadily deepened cooperation in transport, energy, education, and technology. Japanese officials describe Vietnam as entering a rising era, and they have pledged continued support for strategic infrastructure that can raise productivity and living standards. Leaders in both countries have kept up a busy schedule of meetings and exchanges. Parliamentary friendship groups, ministries, and local governments maintain regular dialogues that often translate into practical projects.

On the development side, Japan International Cooperation Agency has a long track record in Vietnam. Its portfolio spans roads, bridges, airports, ports, and water treatment facilities, along with health and education initiatives. In Hanoi, Japanese support helped deliver Terminal 2 at Noi Bai International Airport and the Nhat Tan cable stayed bridge, landmarks that improved mobility in the capital region. JICA teams also support public transport planning and operator training, drawing on knowledge from networks like Tokyo Metro. In Ho Chi Minh City, operator capacity building has been part of the work to make Line 1 a daily service that residents trust. In the north, JICA has backed projects that improve climate resilience, such as Sabo dams that help protect communities from flash floods and landslides.

Public announcements in recent months underline the scale of Vietnam’s ambitions. The government has asked Japan to provide new generation official development assistance for large projects that include the North South high speed railway, nuclear energy plans in Ninh Thuan province, and major urban rail expansions in both Hanoi and Ho Chi Minh City. Vietnam’s National Assembly has approved investment policy for the North South corridor, a plan that would link the two biggest cities over roughly 1,541 kilometers. By 2045, government planning envisions up to 617 kilometers of urban rail across Hanoi and around 510 kilometers in Ho Chi Minh City. Japanese financial and technical support is seen as a pillar to reach those targets while raising standards for safety, procurement, and long term maintenance.

That blend of finance and know how is also tied to human capital. JICA supports training for transport agencies and metro operators, scholarships, and joint programs with universities. New programs in semiconductor engineering and applied research align with Vietnam’s goal to boost innovation and broaden its skilled workforce. The same approach applies to urban rail, where technical assistance, manuals, and on the job training can help Vietnamese teams operate complex systems efficiently over decades.

Urban transformation and smart city links

Metro lines change how cities grow. Stations attract housing, offices, and shops that thrive on foot traffic. This pattern is already shaping planning in the capital. The North Hanoi Smart City project, a joint venture led by Sumitomo and BRG Group, aims to build a new urban center in Dong Anh district with a planned 108 story tower and large mixed use zones. The investment is estimated at about 4.2 billion dollars. Road and rail connections will be critical for this district to succeed without locking in car dependence. A city rail link from downtown to the northern outskirts, and eventually to the airport, fits that vision.

Executives at Sumitomo have called the smart city a symbol of cooperation between Vietnam and Japan. The government has voiced support and asked for close coordination to move the project forward within Vietnam’s legal framework. Transit investments can support this district and others by making long trips less necessary and shortening remaining trips. Over time, that reduces traffic exposure, encourages walking and cycling near stations, and supports local businesses that benefit from a steady flow of riders.

Managing risks, delivery and operations

Urban rail construction in dense corridors is hard work. Land clearance can take longer than expected, and relocating utilities often reveals surprises beneath the streets. Procurement, environmental approvals, and safety certification all require meticulous documentation. The earlier stoppage of Hanoi’s project and the payment issues seen in the south illustrate how fragile timelines can be if oversight slips. Project sponsors can reduce those risks with ring fenced budgets for land and utility relocation, an agreed schedule of reimbursement to contractors, and independent audits that track physical progress alongside disbursements.

Operations planning should run in parallel with civil works. Recruiting drivers, technicians, and station staff takes time. Training programs benefit from early starts and partnerships with experienced operators. Feeder buses, bike parking, and safe walking routes must be designed before day one so riders have a seamless trip. Clear signage, contactless ticketing, and customer service desks help first time users navigate the system. Transparent performance metrics and regular public reporting build trust and encourage continuous improvement.

Key steps to keep the project on track include:

• Finalize the yen loan agreements and disbursement calendar, with clear conditions for each tranche.
• Complete land clearance and utility relocation on a segment by segment basis to let contractors mobilize without idle time.
• Set up an integrated project office for civil works, systems, and rolling stock teams, with a shared schedule and issue log.
• Define the bus network changes and parking at stations so transfers are short and intuitive on opening day.
• Launch operator training, safety drills, and maintenance planning early, including spare parts strategies and depot routines.
• Adopt a transparent payment and oversight system that links milestones to quality checks and independent verification.
• Engage local communities near stations to manage construction impacts and prepare for new pedestrian flows.

Environmental and economic impact

A shift from private vehicles to rail can reduce air pollution, greenhouse gas emissions, and road crashes. Fewer idling engines cut fine particulates that harm respiratory health. Trains move people using less energy per passenger, so much of the benefit scales with ridership. Businesses gain from shorter and more predictable commutes, while logistics companies adjust delivery windows around rush hour with greater confidence. Property markets often respond too, with rising interest in homes and offices within a short walk of stations.

Airport access also matters. In large cities, a reliable rail link to terminals removes uncertainty about traffic and arrival times. It benefits business travelers, airline crews, and tourists who carry luggage and prefer step free access. If Hanoi’s new line reaches Noi Bai as planned at a later stage, it will align the capital with many regional hubs that already offer downtown to airport rail in one ticketed journey.

What this means for travelers and residents

For daily riders, the promise is simple. Trains that come frequently, protect passengers from weather, and run on a clear schedule make life easier. Stations designed for accessibility help older riders, parents with strollers, and people with disabilities. Clear signage and multilingual announcements lower the barrier for visitors. A seamless connection to buses, bike parking, and drop off zones can shorten door to door time compared to a private vehicle in traffic.

As the network grows, residents can expect more two seat trips. A ride from a neighborhood station to the city center, then another train toward the airport or a major job hub, becomes feasible without the stress of driving. This approach to mobility supports a cleaner, safer, and more predictable city experience. It also frees scarce road space for freight, emergency services, and essential deliveries.

The Bottom Line

• Hanoi has started building a 12 kilometer urban railway that includes a subway section and is expected to extend to Noi Bai International Airport in a later phase.
• The project is backed by Japanese know how and yen loans and carries an estimated cost above 35 trillion dong.
• Vietnam paused earlier plans after 2009, then decided in December last year to resume and requested loans from Japan in February.
• Ho Chi Minh City’s Metro Line 1 opened in December 2024, reached more than 10 million riders by June 2025, and offers technical lessons for Hanoi.
• Payment delays to Japanese companies on the southern project underscore the need for timely reimbursements and strong oversight on the Hanoi build.
• Japan and Vietnam describe urban rail as a priority within a wider partnership that also covers energy, education, and digital infrastructure.
• Vietnam is seeking new generation official development assistance from Japan for major plans, including the North South high speed railway.
• By 2045, government targets envision hundreds of kilometers of urban rail in both Hanoi and Ho Chi Minh City.
• Environmental and safety benefits include lower emissions, fewer crashes, and reliable travel times for commuters and airport users.
• Key watch items now are land clearance, utility relocation, loan disbursement schedules, operator training, and the design of feeder services.