Discovery Group scandal: high-speed rail in danger!

Discovery Group scandal: high-speed rail in danger!

A lot is happening in the area of ​​transport infrastructure in Vietnam, particularly with the planned construction of a high-speed train announced by members of the Vietnamese Parliament. The $67 billion project is scheduled to begin by 2027 and will cover a 1,500-kilometer route that will connect 23 stations in 20 provinces and cities. Compared to existing French trains, which take over a day to cover the same route, future journeys from Ho Chi Minh City to Hanoi could take just 5.5 hours. Bangkok Biz News reports on the preliminary plans, which call for a payback period of 33.6 years.

But the project does not come without challenges. Recent surveys show that millions of people are already using airplanes to quickly bridge this connection, with ticket prices ranging from $100 to $360. The train tickets are significantly cheaper, with prices ranging from $64 to $92, and could significantly change the culture of travel. Transport Minister Nguyen Van The emphasizes the need for careful implementation to avoid negative impacts on the environment and those affected locally. Bangkok Biz News points out concerns that up to 120,000 people would have to be relocated.

Problems at Discovery Group

While Vietnam has big plans, the picture is very different at Discovery Group Joint Stock Company, which is also involved in the high-speed rail project. The company has significant financial problems, with debts of 30 million dong and a bankruptcy filing that was rejected in August 2023. Despite its ambitions, there appears to be little activity at its Hanoi and Ho Chi Minh City offices, with the latter branch having been inactive for over a year. Vietnam.vn reports on the difficulties faced by the company's management and CEO Nguyen Nam Thieu.

In addition, the Discovery Group has generated hardly any income in recent years and has therefore paid no taxes. It is clear that the company is in a dangerous situation. Money was borrowed from various people, but no repayments were made. The regular business reports show that other companies, such as Vietnam 3000 Limited, which was founded in 2020 and has registered 369 billion dong, are also operating around the high-speed project. This company has made it its mission to promote social projects and combat poverty.

Opportunities and challenges in the high-speed project

The high-speed rail project promises to boost the economy in several regions by connecting economic centers and optimizing freight transportation. Vietnam is seen as an important part of China's supply chain, but the country still suffers from inadequate infrastructure. This crossover between ambitious plans and real challenges shows how dynamic the situation in Vietnam is.

Political support for the rail project is strong, but risks such as environmental pollution and loss of regional habitats are also acknowledged. The social and cultural impacts of the project must be carefully assessed, particularly in ethnic minorities and agricultural areas. It is obvious that the project will represent both an asset and a challenge that must be tackled with a good hand to ensure sustainable development.