Vietnam plans to spend $8.37 billion on a rail connection to China.
Approved by Vietnam’s National Assembly is the building of the Lao Cai-Hanoi-Hai Phong railway, a major rail line towards the Chinese border. With an estimated cost of $8.37 billion (or $15.96 million per kilometre), the project seeks to boost long-term economic development in the zone, cut logistics costs, and increase transportation efficiency.
Project Overview
With further 27.9km of branch lines, the 391-km railway will link the border crossing site in Lao Cai Province to the coastal city of Hai Phong. It will pass nine localities: Hanoi; the provinces of Yen Bai, Phu Tho, Vinh Phuc; Bac Ninh; Hung Yen; Hai Duong.
Operating both passenger and goods services, the route will be a single-track railway with a 1,435 mm gauge. Design speeds are set from:
- 160 kph from Lao Cai to southern Hai Phong.
- 120 kph through Hanoi.
- 80 kph on other sections.
Other legal sources and the state budget will provide funding and completion money for the project. Relevant organisations will draft feasibility studies this year; the project is supposed to be finished by 2030 at the latest.
The National Assembly has also approved specific mechanisms for the project, such permitting the Prime Minister to issue government bonds to offset deficits in the annual investment plan without escalating the state budget deficit.
Special Mechanisms and Prioritization
Among the various particular procedures in the project to simplify implementation are mineral extraction for building materials.
Scientific, technological, and workforce training developments.
Technology transmission and industrial expansion.
Whenever feasible, contractors working on the railway give domestic manufactured goods, services, and materials top priority.
Regional Context
Comparable to other major rail projects in the area, such the Vientiane-Boten railway in Laos, which cost $16.77 million per km, the cost per kilometre for this project is reasonable.
Economic Impact
Emphasising that the project is intended to fulfil growing transport needs, lower logistical costs, and promote sustainable development, the Standing Committee of Vietnam’s National Assembly. It will also improve connection between provinces, including two important economic hubs, Hanoi and Hai Phong, and expand Vietnam’s trading ties to China.
