Vietnam: The elevated section of Hanoi Metro Line 3 to open with substantial support of the French government, AFD, EIB and ADB

The elevated section of Hanoi Metro Line 3 (8 stations) has been officially inaugurated on 09 November 2024. It will connect Nhon to Cau Giay over approximately 8 km, offering an environmentally friendly mode of transportation and helping to alleviate congestion in the capital of Viet Nam. The construction works of the underground section (4 additional stations connecting to Hanoi Railway Station) have also started last 30 July, and will extend the line to Hanoi Railway Station.

This milestone marks an important step in a project heralded as a prominent example of international cooperation in sustainable urban transport, involving Viet Nam, France and global financiers — the French Development Agency (AFD), the European Investment Bank (EIB), and the Asian Development Bank (ADB), while also supporting Viet Nam’s green transition in line with the Just Energy Transition Partnership (JETP) by promoting low-carbon, public transportation options to reduce urban emissions.

Line 3 benefits from significant financial support from France, which, through the Directorate General of the Treasury (Ministry of Economy, Finance and Industrial and Digital Sovereignty) and the AFD, has provided concessional financing to Viet Nam totaling over 500 million euros. The ADB and the EIB’s global arm, EIB Global, also contributed widely to its funding, with ADB providing $407.8 million and EIB Global contributing 141 million euros.

The project also benefited from the technologies and expertise of leading industrial companies in the sector, working closely with their Vietnamese partners. Alstom, Thales, and Colas Rail (France) provided the rolling stock, signaling and communication systems, as well as the tracks and electromechanical equipment for the stations. Additionally, RATP Smart Systems (France) supplied the ticketing system. Daelim (Korea), Posco (Korea), VINACONEX (Viet Nam) and Hancorp (Viet Nam) were involved in civil works (Viaduct and depot). Hyundai E&C (Korea) and Ghella S.p.A (Italy) held the launching ceremony of the Tunnel Boring Machines for the underground section on 30 July 2024, and construction works are currently underway. In terms of consultancy, Systra (France) has supported Hanoi's Metropolitan Railway Management Board (MRB) in project implementation as a consulting engineer, while Bureau Veritas, APAVE, and Certifer have participated in the certification of the line.

The inauguration of the elevated section of Hanoi Metro Line 3 – the second line to become operational in Viet Nam – demonstrates the capability of Vietnamese and international teams to successfully undertake complex and ambitious urban transport projects. It also reflects the commitment of partner countries and international financial institutions to support Viet Nam in combating climate change by providing the country with technical solutions that meet the highest international standards. Upon its completion, the Metro Line 3 is expected to contribute to reduce 33,150 tons of CO2 equivalent per annum.

Line 3 is expected to continue its route under Tran Hung Dao Street and then southwards to Hoang Mai. For this extension, Viet Nam expects to receive financial support from the Team Europe, including AFD, and KfW Development Bank, and the ADB.

Olivier Brochet, Ambassador of France to Vietnam: “The opening of this section of Hanoi Metro Line 3, the second line in the country to become operational, demonstrates the ability of Franco-Vietnamese teams to successfully undertake ambitious infrastructure projects in the rail transport sector. It also underscores our country’s commitment to supporting Vietnam in its transition to a low-carbon economy, notably by providing the country with technologies that meet the highest international standards. French companies and institutions will build upon the knowledge gained during this project and will continue to participate in various ongoing rail mobility projects in the country. This way, we hope to play an instrumental role to the decarbonization of Vietnamese transport. As a Comprehensive Strategic Partner, innovation and sustainable development are core priorities of our bilateral relationship. Through such projects and other, we hope to play an instrumental role to the decarbonization of Vietnamese transports and be on Vietnam’s side for other innovative projects.”

Julien Guerrier, ambassador of the European Union to Vietnam: “Under the EU’s Global Gateway initiative, we look forward to further strengthening our cooperation with Vietnam and continuing to support impactful projects that make a tangible difference in people’s lives. The EU stands committed to working together with Vietnam to curb CO₂ emissions, including through sustainable transport means, while also accelerating the energy transition.”

Jean-Alexandre Egea, Economic Counselor of the French Embassy in Vietnam (DGT Representative in Vietnam): “The opening of the elevated section of Hanoi Subway Line 3 is an important milestone in Vietnam’s green mobility journey. It also showcases the capability of French companies to deliver complex infrastructure projects in the field of urban transportation in cooperation with Vietnamese authorities.”

Hervé Conan, AFD Director in Vietnam: “The new line 3 combined with adequate bus network will be a game changer for the sustainable urban transport in Hanoi. Beyond low carbon transition, such infrastructure will have a huge impact on the living conditions in Hanoi. It will profit to the Hanoi people and modify their daily mobility in a safer, cleaner and more comfortable way.”

EIB Vice-President Nicola Beer, who is in charge of Bank’s operations in Southeast Asia: “The development of Hanoi Metro Line 3, including the newly inaugurated elevated section, marks the first delivery under the Just Energy Transition Partnership and underscores our commitment to sustainable transport in Vietnam. Once fully operational, Line 3 is expected to serve up to 90 million passengers annually, helping to boost public transport usage in Hanoi from 15% to 40% and bringing Vietnam closer to its net-zero emissions goal by 2050. It has been a great opportunity to collaborate with our Vietnamese and international partners on such an impactful project, combining our expertise to bring effective sustainable mobility solutions along with leading European technologies.”

Shantanu Chakraborty, ADB Country Director for Viet Nam: “Urban vehicles in Asia’s cities are doubling every six years, and are a major source of greenhouse gas. Many of these cities, including Ha Noi, suffer from very high air pollution, with as much as 80% of such pollution attributable to transport. To address this, ADB is working extensively with its member countries to develop comprehensive and integrated transport systems. Ha Noi metro line 3 will provide affordable, reliable, and safe public transport. In addition, it will reduce greenhouse gas emissions and cut travel time along the project corridor by 25%.”

Background information

The Directorate General of the Treasury (DG Trésor) is a division of the French Ministry of Economy and Finance, which advises the government and acts in the service of an innovative and inclusive French economy, promoting sustainable growth in a more efficient Europe in the face of global challenges. In the field of Official Development Assistance, it is also in charge of “Treasury Loans” between France and foreign states to finance development projects.

Agence Française de Développement (AFD) implements France’s policy on international development and solidarity. Through its financing of the public sector and of NGOs, as well as its research and publications, AFD supports and accelerates transitions towards a fairer, more resilient world. It also provides training in sustainable development (at AFD Campus) and other awareness-raising activities in France.

Together with our partners, we are building shared solutions with and for the people of the Global South. Our teams are at work on more than 4,000 projects in the field, in the French Overseas Departments and Territories, in 115 countries and in regions in crisis. We strive to protect global public goods – promoting a stable climate, biodiversity and peace, as well as gender equality, education and healthcare. In this way, we contribute to the commitment of France and the French people to achieve the Sustainable Development Goals (SDGs). Towards a world in common.

AFD group (including its subsidiary Proparco) has financed in Vietnam over 100 projects since 1994 for a total of almost Euros 3 billion in different sectors: transport, infrastructure, energy and agriculture. In line with the priorities of French cooperation in Vietnam, AFD is positioning its operations to support the implementation of the Paris Agreement.

The Asian Development Bank (ADB) is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members—49 from the region. 

EIB Global is the EIB Group’s specialised arm dedicated to investments outside the EU, building  international partnerships and financing projects contributing to development and climate action EIB Global brings the Group closer to local people, companies and institutions through our offices across the world. 

Global Gateway is about providing partners with a quality EU offer, aligning partners’ interests with EU interests: it is the EU’s contribution to narrowing the global investment gap accompanying the twin green and digital transitions beyond European borders and boosting competitiveness and security of global supply chains. It builds on the conviction that scaling up high-quality investments will strengthen our bilateral partnerships and position the EU more prominently in a competitive world, boosting competitiveness and security of global supply chains.