State-owned Vietnam Railways has announced that it will use Japan's bullet train technology on its planned $56bn Hanoi-Ho Chi Minh City rail line.
The country may seek funds for the project from Japan's official development assistance programme as well as from the Asia Development Bank and World Bank.
The work on the 1,560km high-speed rail line is expected to start by 2020.
The announcement caused a sudden jump in Japanese train-car maker shares with Kawasaki Heavy Industries' shares rising by 6.1%, Nippon Sharyo's shares rising by 5% and Kinki Sharyo's shares rising by 6.6% at the Tokyo Stock Exchange.
