Vietnam gives green light to $8bn rail link to China

The railway project will extend about 390.9km from Lao Cai province, near the Chinese border, to Lach Huyen station in Hai Phong, Vietnam.

Vietnam’s National Assembly has approved a railway project connecting the country with China, marking a significant step in modernising its transport infrastructure.

The project aims to establish a modern and synchronised railway line to facilitate both domestic and international transport needs.

It is expected to serve as a key driver for economic development along the Lao Cai – Hanoi – Hai Phong corridor while also integrating with national and international railway networks.

The initiative aligns with Vietnam’s broader goals of industrialisation, modernisation, and sustainable economic growth.

The railway project, which includes a 390.9km main line and 27.9km of branch lines, will create a vital corridor for economic development and national defence.

The single-track railway with a 1,435mm gauge is designed for both passenger and freight transport, with speeds of up to 160km/h on the main line.

The railway is planned to start at the border connection point in Lao Cai province, near the Chinese border and terminate at Lach Huyen station in Hai Phong City, Vietnam.

The route will pass through nine provinces and centrally administered cities, including Hanoi, Yen Bai, Phu Tho, Vinh Phuc, Bac Ninh, Hung Yen, and Hai Duong.

The Vietnamese government has opted for a public investment model, incorporating modern rail technology and electrification to ensure safety and efficiency.

Specific mechanisms and policies are planned to be applied to expedite the project’s implementation.

Notably, the project will not require an appraisal of capital balancing capabilities under Vietnam’s Public Investment Law.

Vietnam is looking to leverage China’s expertise in railway technology for the project.

China is expected to partially fund the project, which is estimated to cost more than $8bn.

The decision was made during the ninth extraordinary session, where lawmakers passed a resolution on the investment policy for the Lao Cai – Hanoi – Hai Phong railway construction project.