Vietnam on Saturday approved the construction of a high-speed railway connecting the capital Hanoi in the north to Ho Chi Minh City in the south at an estimated cost of $67 billion.

The railway, which will stretch more than 1,500 kilometers between the Vietnamese capital and the financial capital in the south, will reduce the current journey time by rail from 30 hours to around five, according to AFP report.

The decision was taken by Vietnam’s National Assembly, its parliament.

"The national assembly voted to approve ... a resolution on investment policies for the high-speed railway project on the North-South axis," said a statement on Vietnam parliament's website.

Construction is expected to begin in 2027 and Vietnam hopes that the first trains will start operating by 2035. But the country has been beleaguered by delays to its previous infrastructure projects.

The train will pass through 20 provinces and cities, with 23 passenger stations and five freight stations along the way. It will transport both people and goods and will also service defense purposes, state media said.

(With input from agencies)