Ho Chi Minh City's authorities signed a memorandum of understanding (MOU) Saturday with the Italian-Thai Development (ITD) Company to begin construction on two monorails and a subway next year.
Under the MOU, ITD will invest a total of US$3.05 billion into the two single-track trains and metro line.
The proposed monorails have been designed on 14-kilometer and 8.5-kilometer track systems respectively. The 24-kilometer subway will travel through a 24-kilometer track.
HCMC People's Committee's Chairman Le Hoang Quan asked ITD to take into consideration factors like earthquakes, climate change and rising sea levels when conducting the feasibility studies.
Vietnam's southern metro plans to develop a rapid transit network that will include six metro lines and three monorails by 2020.
The lines will include a combined 100 kilometers (60 miles) of track and were conceived as part of a plan to tackle rising traffic congestion.