Vietnam’s National Assembly has approved a USD 8 billion railway project connecting the northern port city of Haiphong to Lao Cai, a region bordering China’s Yunnan province. The 390-kilometre rail line will pass through Hanoi and is expected to improve connectivity and trade with China, Vietnam’s largest trading partner.
The new rail link will serve key manufacturing hubs in Vietnam and is projected to cover 25% of the country’s industrial zones. Spanning nine provinces and cities—including Lao Cai, Yen Bai, Phu Tho, Vinh Phuc, Hanoi, Bac Ninh, Hung Yen, Hai Duong, and Hai Phong—the main line will be complemented by three branch lines totalling 27.9 kilometres.
It aims to reduce inefficiencies in current logistics, improving supply chains and facilitating faster transport for goods and passengers. The line will also connect to China’s rail network, enhancing cross-border trade.
Funding for the project will include Chinese loans and align with Vietnam’s “Two Corridors, One Belt” initiative, part of China’s Belt and Road programme. Construction is expected to begin soon, with completion slated for 2030.
The Vietnam China rail link is seen as crucial for boosting Vietnam’s position in global trade. It will offer a faster, more efficient alternative to road transport, alleviating pressure on Vietnam’s congested roads and creating smoother access to markets in China and beyond. Additionally, it aligns with Vietnam’s broader infrastructure development plans, including a high-speed railway from Hanoi to Ho Chi Minh City, set to begin in 2027.
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