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Vietnam recently took a major step in strengthening its trade links with China by approving the construction of a new railway line. Spanning approximately 390 kilometers, this ambitious project will connect the strategic port ofHaiphong to the region of Lao Cai, at the gates of Yunnan Chinese. With an estimated cost of more than $8 billion, financed in part by Beijing, the new route represents a key factor in modernizing Vietnam’s aging infrastructure and boosting trade between the two nations.
Vietnam recently took a major step forward by approving the construction of a new railway line linking the port city of Haiphong to China’s Yunnan province, via Hanoi. This project, with a length of almost 400 kilometers, is estimated at a total cost of more than 8 billion dollars and aims to strengthen trade between Vietnam and China, as well as with other countries in the region.
A new strategic rail link
On February 19, the Vietnamese Parliament validated this infrastructure project almost unanimously. This new railway line will cross Vietnam from the north and will serve major industrial sites where several multinationals, such as Samsung and Foxconn, are based. These companies depend on a constant supply of components, often from China.
Project cost and financing
The financing of this railway line will be partly provided by Chinese loans. The Vietnamese government hopes that this collaboration with Beijing will boost the local economy and improve the country’s aging infrastructure. This project is part of the “new Silk Roads”, a Chinese initiative aimed at expanding the transport network and strengthening commercial links with neighboring countries.
Aging infrastructure to be modernized
Vietnam’s current transport infrastructure has suffered from a lack of investment for decades. Many experts believe that this dilapidated infrastructure constitutes an obstacle to economic growth. The Vietnamese Ministry of Foreign Affairs said that this new railway line would “boost cooperation on the economy, trade, investment and tourism between the two countries”.
Commissioning Expectations
The Vietnamese government plans that the feasibility study for this line will begin in 2025, with delivery expected by 2030. However, it is important to note that such large-scale projects in Vietnam can often be subject to delays. Once completed, this new rail link should enable expected traffic speeds of 160 km/h, a clear progress compared to the 50 km/h current lines of the line in service dating from the colonial era.
A promising railway future
In parallel with this project, Vietnam also plans to develop other railway lines, including one which will connect Hanoi to Ho Chi Minh City. This initiative aims to significantly reduce travel time between these two major cities, making it more competitive with current routes. Vietnam appears determined to modernize its transportation network to support its rapid economic development.
This railway line project between Vietnam and China is expected to have a significant impact on the region’s economy, promoting better trade and facilitating the import of essential raw materials for Vietnamese industries.
FAQs on the new Vietnam-China railway line
The new railway line will measure approximately 390 kilometers long, linking the port city of Haiphong to Lao Cai, on the border with China.
The total cost of this project is estimated at more than 8 billion dollars.
Part of the financing will be provided by the China through loans, as part of its infrastructure program called the “new silk roads”.
This railway aims to boost trade between Vietnam and China, as well as facilitating the transport of goods between Vietnamese factories and international markets.
Feasibility studies for the line are expected to begin in 2025, with early delivery for 2030.
Trains on this new line will run at a speed of 160 km/h, against 50 km/h for the current line, thus improving the efficiency of passenger and freight transport.
Yes, Vietnam is also planning to build a high-speed train line connecting Hanoi has Ho Chi Minh City.