Hanoi (Agencies): Vietnam’s National Assembly has approved the investment for the Lao Cai-Hanoi-Hai Phong railway project, a major infrastructure initiative aimed at enhancing trade and connectivity with China. The $8.37 billion railway will connect Vietnam’s northern port city of Hai Phong to Lao Cai, which borders China’s Yunnan Province.
Construction is set to begin by the end of this year, with completion expected between 2026 and 2030. The 390.9-kilometer main railway line, along with 27.9 kilometers of branch lines, will pass through seven provinces and two cities, covering key economic regions, according to local media reports.
Once operational, the railway is projected to serve 20% of Vietnam’s population, contribute to 25.4% of the country’s GDP, and support 25.1% of its industrial areas. It will facilitate both passenger and cargo transport, improving Vietnam’s logistics network and driving economic growth.
Experts believe the project will significantly boost trade between China and Vietnam. Xu Liping, director of the Center for Southeast Asian Studies at the Chinese Academy of Social Sciences, highlighted that Vietnamese exports will reach Europe more efficiently via China’s railway network. The project is also seen as a major step towards realizing the Pan-Asia Railway, which aims to connect China with Southeast Asia through an extensive rail network.
Chinese Foreign Ministry spokesperson Guo Jiakun confirmed that both nations have agreed to accelerate the feasibility study for multiple standard gauge railways, including the Lao Cai-Hanoi-Hai Phong route, as well as the Dong Dang-Hanoi and Mong Cai-Ha Long-Hai Phong railways. A key connection point between Hekou in China’s Yunnan Province and Lao Cai in Vietnam will also be established.
The Pan-Asia Railway is gradually taking shape, with key links such as the China-Laos Railway, China-Thailand High-Speed Railway, and planned extensions in Malaysia and Thailand contributing to greater regional connectivity. The initiative aligns with China’s Belt and Road Initiative, which has fostered closer trade and investment ties with ASEAN nations.
China has been ASEAN’s largest trading partner for 16 consecutive years, with bilateral trade reaching $959 billion in 2024. The development of the Pan-Asia Railway is expected to further integrate regional supply chains and enhance economic cooperation between China and Southeast Asia.