Vietnam has announced plans to utilize Chinese loans for the construction of a new $8.3 billion railway project aimed at improving transport connections between the two neighboring countries. This development comes as Vietnam seeks to modernize its aging rail infrastructure to support the country’s growing economic demands.
The new 391-kilometer railway will span from the border city of Lao Cai, passing through the capital, Hanoi, and extending to Haiphong, home to northern Vietnam’s largest seaport. The project will include a standard gauge of 1,435 millimeters, enabling trains to operate at speeds of up to 160 kilometers per hour, with the line designed to accommodate both passenger and freight services.
Transport Minister Nguyen Hong Minh highlighted the necessity of the project during a parliamentary session, emphasizing that Vietnam’s current railway system is outdated and insufficient for the nation’s needs. The government hopes the new railway will stimulate economic development by improving transportation efficiency between major cities and regions.
Construction of the railway is expected to commence later this year, with the project set to be completed by 2030. In addition to this project, Vietnam’s lawmakers are preparing to vote on a separate $67 billion high-speed rail initiative, which will link Hanoi and Ho Chi Minh City, with an estimated operational start in 2035.
The parliamentary vote on the proposed railway project is scheduled for next week. The project marks a significant step forward in Vietnam’s infrastructure modernization efforts, as the country seeks to boost connectivity and economic growth.
Among those supporting the initiative are key officials, including Transport Minister Nguyen Hong Minh, who has played a pivotal role in advancing the project.
