Vietnam approves an $8.36B railway project linking Haiphong to China’s Yunnan province, set to enhance trade, connectivity, and regional infrastructure by 2030.
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| Vietnam’s parliament greenlights a 391km rail project linking Haiphong to Lao Cai on the Chinese border, strengthening economic and transport ties with China. Image: The Star |
Hanoi, Vietnam – February 22, 2025:
Vietnam’s parliament has approved an $8.36 billion railway project that will link Haiphong, its key northern port city, to Lao Cai, a border city adjacent to China’s Yunnan province. The initiative, aimed at enhancing trade and connectivity, received overwhelming support from lawmakers, with 455 out of 459 voting in favor.
The railway will span 391 kilometers, with an additional 28 kilometers of branch lines, covering nine provinces. Vietnam plans to launch a feasibility study this year, targeting project completion by 2030.
By creating a direct rail corridor between Vietnam’s industrial hubs and China, the project is expected to significantly improve cargo and passenger transport, reducing logistics costs and boosting cross-border trade. With China as Vietnam’s largest trading partner, the enhanced infrastructure could further integrate supply chains and increase economic interdependence.
The rail link aligns with Vietnam’s broader infrastructure strategy, which seeks to modernize transport networks and support long-term economic growth. As the country strengthens its position as a regional manufacturing powerhouse, this project could be a pivotal step in reshaping Southeast Asia’s trade landscape.