Vietnam’s National Assembly has sanctioned the development of a significant $8.3 billion railway project aimed at enhancing connectivity between northern Vietnam and China. This 391-kilometer electrified standard-gauge railway will extend from the Lao Cai-Hekou border gate through Hanoi to Haiphong, the largest seaport in northern Vietnam. The project also encompasses 27.9 kilometers of branch lines.
Transport Minister Nguyen Hong Minh emphasized the necessity of modernizing Vietnam’s outdated railway infrastructure to support economic growth. He announced that construction is slated to commence within the year, with an anticipated completion by 2030. The new railway is designed for speeds up to 160 kilometers per hour, significantly enhancing transportation efficiency in the region.
This initiative will replace the existing narrow-gauge line, originally constructed in 1910 during the French colonial era, with a modern standard-gauge system compatible with China’s rail network. This compatibility is expected to facilitate smoother cross-border trade and transportation.
Funding for the railway will be sourced from the state budget and other legal avenues, including a loan from the Export-Import Bank of China. However, specific details regarding the loan’s size have not been disclosed.
The approval of this railway project coincides with Vietnam’s decision to elevate its GDP growth target for 2025 to at least 8%, up from the previous 6.5% to 7% range. This move underscores the government’s commitment to accelerating economic development through substantial infrastructure investments. In addition to the railway, the National Assembly has greenlit the construction of the country’s first nuclear power plants and authorized policies to support the semiconductor industry. These initiatives are part of a broader strategy to enhance Vietnam’s economic resilience and technological capabilities.
The railway project is poised to strengthen economic ties between Vietnam and China, promoting increased trade and investment. By modernizing its transportation infrastructure, Vietnam aims to bolster its position as a regional manufacturing hub and stimulate economic growth in its northern provinces.
Cre: Vietnam’s National Assembly Approves $8B Rail Link to China – The Diplomat
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