According to the SBV, Vietinbank will arrange a total of 783 million EUR ($1.01billion ) towards the project.
Financing includes 293 million EUR ($381 million) from the Asian Development Bank (ADB), 250 million EUR ($325 million) in Official Development Assistance (ODA) from the French Government, 110 million EUR ($143 million) in ODA from the French Development Agency (AFD), 73 million EUR ($94.9 million) in ODA from the European Investment Bank (EIB) and 130 million EUR ($169 million) from the Hanoi City budget.
The 12.5 km route will include 8.5 km of elevated track connecting the Nhon depot with Thu Le Park and 4 km of underground track connecting Thu Le with Hanoi Railway Station.
The Hanoi Metropolitan Rail Transport Project Board (HRB) will oversee the project, which will include a viaduct, power supply stations and a depot.
Expected to become operational in 2015, the line will carry 150,000 passengers per day, to increase to 500,000 by 2030.
The metro project is part of a Vietnam Ministry of Transport master plan aimed at reducing the use of private transport to enhance the urban environment.