UK And Vietnam Forge New Rail And Finance Ties

From January 19 to January 23, 2026, Vietnam played host to a high-profile British delegation led by Matt Western, the UK Trade Envoy for Vietnam, Thailand, Laos, and Cambodia, in a move that signals deepening cooperation between the two nations across urban infrastructure, finance, and digital innovation. The visit, organized under the Green City Infrastructure and Energy Program (GCIEP) by the UK Embassy in Hanoi and Consulate General in Ho Chi Minh City, marked a pivotal moment for Vietnam’s ambitions to modernize its urban transport and financial systems, drawing on British expertise and investment.

The British delegation, comprised of leading railway companies and specialists in Transit-Oriented Development (TOD) and Building Information Modeling (BIM), embarked on a packed schedule of meetings with Vietnamese officials and industry leaders in both Hanoi and Ho Chi Minh City. Their mission: to share the United Kingdom’s hard-won experience in railway design and implementation, while seeking strategic partnerships to accelerate Vietnam’s transport infrastructure development.

On January 23, 2026, Matt Western met with Nguyen Van Dung, Deputy Chairman of the Ho Chi Minh City People’s Committee. The two discussed not only the direction of the city’s urban railway system, but also the potential for British-backed credit support packages and broader cooperation in finance, education, healthcare, energy, and technology. The relationship between Ho Chi Minh City and Liverpool was highlighted as a model for international partnership.

Western’s visit wasn’t limited to transport. He also held talks with Tran Quoc Phuong, Vietnam’s Minister of Finance, and Tran Thi Ngoc Lien, Deputy Director of the State Bank of Vietnam, focusing on collaboration for the planned International Financial Center. Discussions extended to trade policy, as Western met with Le Trieu Dung, Director of the Multilateral Trade Policy Department at the Ministry of Industry and Trade, to review the Vietnam-UK Free Trade Agreement (UKVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

One of the trip’s highlights was the signing of a memorandum of cooperation to develop a specialized BIM center for Vietnam’s railway projects, a partnership between the Vietnam Institute of Construction Economics and the UK Foreign, Commonwealth & Development Office. This agreement cements the UK’s commitment to helping Vietnam adopt cutting-edge digital modeling and project management standards, which are increasingly seen as essential for delivering large, complex infrastructure projects on time and on budget.

At a workshop in Hanoi titled “Urban Railway Technology and TOD Model: UK-Vietnam Cooperation,” British railway companies presented practical solutions and shared lessons learned, laying the groundwork for Vietnam’s own TOD strategy and the construction of modern, sustainable urban environments. The event drew high praise from Vietnamese officials. Nguyen Cao Minh, Head of the Hanoi Urban Railway Management Board, was particularly effusive: “The UK’s extensive experience in integrating low-carbon solutions, managing complex projects, and especially in BIM standards and digital transformation, are invaluable lessons for us.”

Minh pointed out that 2025 marked a watershed for Hanoi, as new railway lines transitioned from vision to actual construction. The involvement of British companies, renowned for their expertise in railway engineering, financial consulting, and TOD planning, was described as “a very valuable opportunity for Vietnam.”

Matt Western, reflecting on the significance of this moment, remarked, “Vietnam is at a crucial stage in its infrastructure development journey. Rapid economic growth and urbanization bring both opportunities and challenges—especially the need for sustainable, efficient, and integrated transport systems. Railways and TOD are not just about moving people, but about shaping cities, reducing congestion, improving air quality, and creating vibrant communities.”

The UK’s support, delivered through the GCIEP and funded by the Foreign, Commonwealth & Development Office, represents a shared commitment to building infrastructure that meets international standards and advances climate and sustainability goals. This aligns with the comprehensive Vietnam-UK strategic partnership agreement signed in October 2025 and the 2024-2026 action plan, reinforcing the UK’s role as a “reliable partner” in Vietnam’s urban transformation.

Vietnam’s ambitions do not end with transport. The country aims to achieve high-income status by 2045, a goal that demands major improvements in sustainable infrastructure and urban connectivity in its economic hubs, Hanoi and Ho Chi Minh City. The development of national and urban railway networks is seen as central to this vision, with TOD and BIM emerging as key tools for integrated planning and modern infrastructure delivery. These efforts are expected to improve both quality of life and public transport accessibility for millions of Vietnamese.

While the British railway mission was underway, another important meeting took place on the morning of January 23 at the headquarters of the State Bank of Vietnam. Deputy Governor Nguyen Ngoc Canh welcomed Alexandra Smith, UK Consul General in Ho Chi Minh City, and representatives from British fintech firms. The focus was on deepening financial cooperation and supporting Vietnam’s drive to become a green financial hub in the region.

Canh expressed gratitude for the UK government’s support, which has included projects to help Vietnam build a Financial Center, promote green finance, and advance digitalization and transparency in trade finance. He acknowledged the long-term commitment of UK banks, especially Standard Chartered and HSBC, whose contributions have been “positive for the development of Vietnam’s banking system and economic growth.”

As Chairman of the Vietnam-UK Friendship Association, Canh emphasized the significance of the bilateral relationship, noting that “the UK is one of Vietnam’s most important partners in Europe.” Bilateral trade in 2025 soared to $9.3 billion, up 10.7% from 2024, with the UKVFTA serving as a key driver of this growth.

Alexandra Smith echoed these sentiments, stating, “Economic relations are a central focus of Vietnam-UK diplomacy, and our relationship is now a comprehensive strategic partnership.” She underscored the UK’s desire to continue collaborating with Vietnam and the State Bank on financial market growth and improved financial services. Smith also welcomed the establishment of International Financial Centers in Ho Chi Minh City and Da Nang as “a positive signal,” and offered the UK’s experience to help Vietnam accelerate its digital transformation in finance.

The meeting also touched on Vietnam’s surging adoption of digital payments. Over 87% of adults now have bank accounts, and the use of mobile, internet, and QR code payments is growing rapidly. The country’s real-time payment and clearing systems handle more than 30 million transactions per day, reflecting the success of policies to diversify payment products and services while ensuring security and risk management.

Deputy Governor Canh concluded by reaffirming the State Bank’s commitment to practical and effective cooperation with the UK, seeing financial and banking ties as “a key pillar” supporting Vietnam’s sustainable development and integration.

As Vietnam and the United Kingdom look ahead, these recent engagements underscore a shared vision for sustainable growth, innovation, and partnership—on the rails, in the boardroom, and beyond.