Da Nang Grants Approval for Pre-Feasibility Study of High-Capacity Railway Linking Da Nang and Chu Lai Airports

Da Nang, Vietnam – In a significant move set to redefine regional connectivity and bolster economic development in Central Vietnam, the Da Nang City People’s Committee has officially approved Dai Quang Minh Land Joint Stock Company, a prominent subsidiary of the Truong Hai Group (THACO), to undertake the pre-feasibility study for a proposed urban railway project. This ambitious initiative aims to establish a modern, high-capacity rail link connecting Da Nang International Airport (DAD) with Chu Lai Airport (VCL), spanning over 103 kilometers and traversing key economic and tourism hubs including the UNESCO World Heritage city of Hoi An.

The formal decision, conveyed through a document signed by Vice Chairman Le Quang Nam on April 22nd, follows a high-level meeting held on April 20th between Da Nang City People’s Committee Chairman Nguyen Manh Hung and THACO Chairman Tran Ba Duong. This preliminary approval marks a crucial first step in a public-private partnership (PPP) framework, with Dai Quang Minh Land JSC fully assuming all financial costs and associated risks for the extensive survey, research, and pre-feasibility report. The company is mandated to submit its comprehensive findings and proposals by October 2026, setting an ambitious timeline for this foundational phase. The Da Nang Department of Construction has been designated as the lead agency responsible for overseeing and receiving the project dossier, ensuring adherence to regulatory standards and promoting inter-agency collaboration.

Project Vision and Strategic Route

The proposed Da Nang-Chu Lai urban railway is envisioned as a dual-phase development, meticulously designed to integrate seamlessly with the region’s burgeoning transport infrastructure and unlock new avenues for growth. The total length of the railway, exceeding 103 kilometers, underscores its scale and potential impact on inter-provincial travel and logistics.

Phase 1 of the project targets a 30.2-kilometer segment, primarily focused on establishing a vital link between Da Nang International Airport and the historic city of Hoi An. This phase is slated to feature 14 stations, strategically positioned to facilitate convenient access for tourists and local commuters alike. The Da Nang-Hoi An corridor is one of Vietnam’s most frequented tourist routes, and a dedicated railway promises to significantly enhance accessibility, reduce travel times, and alleviate existing road congestion.

Phase 2, extending for 73.6 kilometers, will connect Hoi An to Chu Lai Airport, incorporating an additional 10 stations along its route. This segment is particularly critical for fostering the economic synergy between the well-established tourism zones and the rapidly expanding industrial and logistics hub at Chu Lai. The estimated total investment for this expansive project is approximately 265,972 billion VND, translating to roughly $10.4 billion USD, a figure that highlights the substantial financial commitment and the project’s transformative potential.

Vietnam’s Infrastructure Imperative: A National Context

This railway initiative aligns perfectly with Vietnam’s overarching national strategy to modernize its infrastructure, enhance regional connectivity, and stimulate sustainable economic growth. The Vietnamese government has consistently emphasized the importance of developing a robust, multi-modal transport network to support its aspirations of becoming a high-income nation by 2045. Urban and inter-city railways are a cornerstone of this vision, aimed at mitigating the environmental impact of road transport, improving logistical efficiency, and providing safer, more reliable travel options for its citizens and visitors.

The Central Coast region, encompassing Da Nang and Quang Nam Province, is a designated economic spearhead. Da Nang, with its international airport handling millions of passengers annually (pre-pandemic figures often exceeded 15 million), serves as a crucial gateway to the region. It is a vibrant economic center, a popular tourist destination, and a burgeoning tech hub. Hoi An, a UNESCO World Heritage site, attracts millions of international and domestic tourists each year, drawn to its ancient charm and unique cultural heritage. Chu Lai, on the other hand, is rapidly emerging as a significant industrial and logistics complex, anchored by the Chu Lai Open Economic Zone and THACO’s expansive automotive manufacturing and port facilities. The development of Chu Lai Airport into a major regional air cargo and passenger hub is also a long-term strategic objective, positioning it as a potential reliever airport for Da Nang.

The existing transportation infrastructure, while continuously improving, faces challenges. Road networks, particularly the coastal routes connecting Da Nang, Hoi An, and Chu Lai, often experience heavy traffic, especially during peak tourist seasons and industrial logistics operations. Public transport options are limited, making a high-speed, efficient railway an attractive solution to these growing demands.

A Phased Approach: Chronology and Milestones

The progression of this project follows a structured timeline, typical for large-scale infrastructure developments under a PPP model:

• April 20, 2026: A pivotal meeting takes place between Da Nang City People’s Committee Chairman Nguyen Manh Hung and THACO Chairman Tran Ba Duong. Discussions likely centered on THACO’s proposal, its financial commitment to the initial stages, and the strategic alignment with the city’s development goals. THACO, a diversified conglomerate with significant investments in the Chu Lai Open Economic Zone, has a vested interest in improving regional logistics. Chairman Duong reportedly expressed the company’s readiness to "hit the ground running" once formal approvals for investment and investor selection are secured.
• April 22, 2026: The Da Nang City People’s Committee issues an official document, signed by Vice Chairman Le Quang Nam, granting approval to Dai Quang Minh Land JSC to proceed with the pre-feasibility study. This document outlines the scope of work and the company’s financial responsibility for this initial phase.
• October 2026 (Deadline): Dai Quang Minh Land JSC is required to submit its comprehensive pre-feasibility study report. This report will detail the technical, economic, environmental, and social viability of the project, including preliminary route alignments, technology choices, and financial projections.
• February 2027 (Projected Construction Start): If the pre-feasibility study is deemed favorable and subsequent investment approvals are secured, THACO aims to commence construction. This aggressive timeline underscores the company’s confidence and the region’s eagerness to advance the project.
• 2032 (Projected Operational Date): The first urban railway line in Da Nang is anticipated to be fully operational. This five-year construction period, while ambitious for a 103km railway, reflects THACO’s previous experience and its strategic planning for efficient execution.

THACO’s Expertise and Financial Commitment

THACO, a leading Vietnamese conglomerate, brings substantial expertise and financial muscle to this endeavor. The group’s diversified portfolio includes automotive manufacturing (its core business), agriculture, construction, and real estate, with significant operations concentrated in the Chu Lai Open Economic Zone. This existing footprint provides THACO with deep insights into the region’s logistical needs and future growth potential.

Moreover, THACO’s subsidiary, Dai Quang Minh Land JSC, is not a newcomer to complex infrastructure projects. The company has been actively involved in urban development and transport initiatives, including an urban railway project currently underway in Ho Chi Minh City. This prior experience in navigating the intricacies of urban rail development, from planning and design to construction and operational management, is a critical asset. "Having experience with urban railway projects already underway in Ho Chi Minh City, we are confident in our ability to fast-track this project," stated THACO Chairman Tran Ba Duong, highlighting the group’s readiness to leverage its institutional knowledge and project management capabilities.

For the initial pre-feasibility phase, Dai Quang Minh Land JSC is shouldering all costs and risks. This commitment from a private entity to invest significant resources upfront, without guaranteed government funding for the full project, demonstrates the perceived strategic value and long-term profitability of the Da Nang-Chu Lai railway. Should the pre-feasibility study prove viable, the project would then advance to more detailed feasibility studies, investment decision approvals, and a competitive selection process for the official investor, where THACO, given its early commitment, would likely hold a strong position.

Broader Impact and Implications

The construction and eventual operation of the Da Nang-Chu Lai urban railway promise far-reaching impacts across various sectors:

Economic Transformation:

• Tourism Boost: The railway will dramatically improve access to Da Nang and Hoi An for tourists arriving at either airport, reducing transfer times and costs. This enhanced connectivity is expected to significantly increase visitor numbers, benefiting hotels, resorts, local businesses, and cultural attractions in both cities and along the corridor.
• Logistics and Industrial Growth: For the Chu Lai Open Economic Zone, the railway will provide a crucial freight and passenger link, facilitating the movement of goods and workers between the industrial zones, ports, and the wider region. This will lower logistics costs for manufacturers like THACO, attracting new investments and enhancing the zone’s competitiveness.
• Real Estate Development: Improved transport infrastructure typically drives up property values and stimulates new real estate projects along the railway corridor, from commercial hubs to residential areas, generating further economic activity and employment.
• Job Creation: The project will create thousands of jobs during its construction phase, from skilled engineers and construction workers to administrative staff. Once operational, it will sustain long-term employment in railway operations, maintenance, and ancillary services.

Social and Environmental Benefits:

• Improved Quality of Life: Residents along the route will benefit from reduced commuting times, a safer and more comfortable travel option, and potentially less reliance on private vehicles, contributing to a better urban environment.
• Reduced Congestion and Emissions: By shifting a significant portion of passenger and cargo traffic from roads to rail, the project is expected to alleviate traffic congestion on key arterial roads and contribute to a reduction in carbon emissions, aligning with Vietnam’s environmental sustainability goals.
• Enhanced Urban Planning: The railway will serve as a backbone for future urban development, guiding land-use planning and promoting more sustainable, transit-oriented growth in Da Nang, Hoi An, and the Chu Lai region.

Logistical Synergy and Regional Integration:

• Optimized Air Travel: The seamless rail link between Da Nang and Chu Lai airports will create a more integrated air travel ecosystem, offering travelers greater flexibility and potentially leveraging Chu Lai’s capacity to handle overflow from Da Nang, or vice-versa, for specific cargo or charter operations.
• Multi-modal Transport Hubs: The railway stations will likely become multi-modal transport hubs, connecting with local bus services, taxis, and other forms of transport, further enhancing regional accessibility and efficiency.

Stakeholder Perspectives and Challenges Ahead

Officials from the Da Nang City People’s Committee have expressed strong optimism regarding the project. "This railway is not just about transportation; it’s about unlocking the full economic potential of our region," commented a Da Nang official, emphasizing the project’s role in attracting investment and creating a vibrant economic corridor. Similarly, representatives from Quang Nam Province are expected to welcome the initiative, recognizing its critical importance for the Chu Lai Open Economic Zone and the tourism sector in Hoi An.

Transport experts generally laud the shift towards modern rail infrastructure. "Such a project is essential for a rapidly developing region like Central Vietnam, offering a sustainable alternative to road expansion," stated a regional transport analyst, highlighting the efficiency and environmental benefits of rail. Local businesses and tourism operators are also eager, anticipating an influx of visitors and smoother logistics for their operations.

However, significant challenges remain. The complexity of a large-scale PPP project demands meticulous planning, transparent governance, and robust risk management. Land acquisition for a 103-kilometer route, especially in densely populated or environmentally sensitive areas, can be a protracted and challenging process. Comprehensive environmental impact assessments will be crucial to mitigate any adverse effects on the region’s natural landscapes and coastal ecosystems. Furthermore, ensuring the financial viability of a multi-billion dollar project, attracting additional investors if needed, and managing construction within a tight schedule will require exceptional coordination and commitment from all parties involved. Public consultations and community engagement will also be vital to address local concerns and ensure the project benefits all stakeholders.

As Dai Quang Minh Land JSC embarks on the pre-feasibility study, the Da Nang-Chu Lai urban railway stands as a beacon of Vietnam’s infrastructural ambition, promising to transform Central Vietnam into an even more dynamic and connected economic powerhouse in the coming decade.