- Vietnam starts construction on 391 km rail link to China.
- Project cost ~$7.7 billion, with Chinese loans involved.
- Part of $129 billion national infrastructure push.
Vietnam kicked off the first phase of an expanded rail project that will merge its network with China's, which is a major step in its long-term infrastructure investment plan. The state authorities declared that construction work on five stations of the new 391-kilometre rail line has begun. This line will pass the northern border town of Lao Cai through the capital city Hanoi to Haiphong which has the largest seaport in the north of Vietnam.
The Lao Cai–Hanoi–Haiphong railway, which is worth approximately 203.2 trillion Vietnamese dong ($7.72 billion), will increase co-operation between the two countries and facilitate the ambitions of Vietnam to promote economic growth, logistics and trade relations with China. The laying of the actual railway tracks is planned for the end of next year. The completion of the project is scheduled for 2030.
One element of the railway's funding, which includes loans from the Chinese government, indicates the prioritization by the two nations of the strategic role that the improved transport links will play. However, Vietnam is undertaking a vast infrastructure program comprising 234 major projects with an approximate combined value of $129.23 billion beyond this single project. These projects consist of the already finished developments like new hospitals in Ninh Binh, and the expansion of Hanoi’s Noi Bai airport and a military air base in Phan Thiet.
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Among the future projects, there is a $33.6 billion Red River bank restoration, a sports complex in Hanoi, a $2 billion casino resort in Quang Ninh, and several industrial and housing schemes. Vietnam has been increasing its infrastructure expenditure as one of the main tools to maintain its ambitious growth targets, among which are an over 8% GDP growth for 2025 and possibly over 10% in 2026, according to government forecasts.
The selected rail project is anticipated to enhance freight and passenger mobility, reduce transit times, and promote economic corridors that connect Vietnam’s manufacturing hubs with both local and international markets. This move exemplifies Hanoi's effort to improve its transport backbone and intensify economic integration with neighbors while it is still managing global trade relations and domestic development priorities.