European Union sanctions €10 million to support extension of Hanoi Metro Line 3

Hanoi, Vietnam (Rail & Metro Today): The European Union (EU) has committed a €10 million grant to support studies and investment preparations for the proposed extension of Hanoi Metro Line 3 from Hanoi Station to Hoang Mai in southern Vietnam’s capital. The planned 11-kilometre extension will run entirely underground and incorporate transit-oriented development (TOD) planning to improve public transport accessibility and support sustainable urban growth.

The grant will be managed by the French Development Agency (AFD) on behalf of the EU and will finance project preparation rather than the construction of the extension itself. The initiative is expected to help Hanoi assess the technical and financial feasibility of the project, identify suitable development opportunities and prepare a framework for securing construction funding.

The announcement was highlighted at a commemorative ceremony held on October 19 at Cau Giay Station on the Nhon–Hanoi Station section of Metro Line 3. The event brought together representatives of the Hanoi People’s Committee, the French government, AFD, the Asian Development Bank (ADB) and the European Investment Bank (EIB).

Underground Extension to Strengthen Southern Hanoi Connectivity

The proposed extension from Hanoi Station to Hoang Mai will add approximately 11 kilometres of underground metro infrastructure to Line 3. Preparatory activities are expected to be completed by the end of 2027, according to the project partners.

The Hanoi Metropolitan Railway Management Board (MRB), the agency responsible for managing and implementing the capital’s urban railway projects, is overseeing the preparatory programme under a support agreement signed by the Hanoi People’s Committee in 2024.

The EU-funded studies will cover a feasibility assessment, TOD planning along the proposed alignment, traffic organisation and multimodal connectivity. The programme will also strengthen the capacity of agencies responsible for implementing the project.

Integrating metro expansion with TOD planning is expected to improve connections between residential neighbourhoods, employment centres and commercial districts. The approach can also encourage more compact urban development around stations, helping residents access public transport more conveniently and reducing dependence on private vehicles.

International Partners Explore Construction Financing

The €10 million grant is intended to prepare the project for future investment decisions. Construction funding is expected to be explored through the Team Europe cooperation mechanism, potentially involving Germany’s KfW Development Bank and collaboration with ADB.

Hanoi People’s Committee Vice Chairman Truong Viet Dung highlighted the wider significance of metro development, noting its potential to ease traffic congestion, reduce environmental pollution, improve urban planning and connect major development centres.

Metro Line 3 Records Strong Operational Performance

Hanoi Metro Line 3 extends for 12.5 kilometres and comprises 12 stations, including eight elevated and four underground stations. Its elevated section between Nhon and Cau Giay began commercial operations in August 2024, providing an additional high-capacity transport option in western Hanoi.

According to data cited by the international funding partners, the elevated section recorded approximately 6.4 million passenger journeys during its first year of operation, with an on-time performance rate of 99%. The partners also estimated that the line helped avoid around 49,000 tonnes of carbon dioxide equivalent emissions in 2025, with annual savings projected to reach approximately 81,500 tonnes by 2030.

Construction of the underground section between Cau Giay and Hanoi Station, comprising four stations, is continuing, with completion and entry into service targeted for 2027 under the schedule outlined by the project partners on October 19.

Hanoi’s metro network currently includes the operational Cat Linh–Ha Dong Line 2A, which opened in November 2021, alongside the elevated section of Line 3. The proposed Hoang Mai extension would further strengthen the capital’s urban rail network, subject to the outcome of preparatory studies, government approvals and the mobilisation of construction financing.