Vietnam Moves Forward with Large Railway Project Connecting to China

A 2024 file image of Vietnam's Lao Cai province, which will be connected to Hanoi, Kunming and Hai Phong. (Photo by GUIZIOU Franck / hemis.fr / Hemis via AFP)

The Vietnamese government plans to use local resources and Chinese loans to finance a $7.7 billion, 403-kilometer railway project linking it to China. The Lao Cai-Hai Phong railway will connect to Hanoi and China’s Kunming. According to a pre-feasibility study submitted to the government by the Minister of Transport, Tran Hong Minh, it will create a construction market worth $4.4 billion and 90,000 direct jobs.

The railway will be built between 2026 and 2030. It is likely to add to already surging rail traffic between the two countries. Freight volumes rose 760% compared to January last year. The rail line will likely increase bilateral trade as well as speed up the establishment of Chinese factories in Vietnam.

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by CGSP Staff

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