Vietnam’s National Assembly has approved the investment for the Lao CaiHanoi-Hai Phong railway project, a signicant move aimed at enhancing transportation connectivity between China and Southeast Asia. The Pan-Asia Railway project is a key component of China’s Belt and Road Initiative, which aims to improve infrastructure and promote closer cooperation across the region.
Viet Nam’s proposed $8.37 billion project, which spans from Vietnam’s northern port city Hai Phong to the border town of Lao Cai, is expected to boost both passenger and cargo transport and promote economic growth in the region.
The construction of the 391-kilometer main line, along with three additional branch lines, is scheduled to begin by the end of this year, with the project slated for completion between 2026 and 2030.
The railway will pass through seven provinces and two cities, connecting key areas such as Hanoi, Hai Phong, and Lao Cai, which borders China’s Yunnan Province. Once operational, the railway will serve a signicant portion of Vietnam’s population—about 20 percent—while covering over 25 percent of the country’s GDP and industrial areas. This enhanced connectivity is expected to improve trade logistics, facilitate the transport of exports, and reduce the time and cost of moving goods, both within Vietnam and to broader international markets, including China and Europe.
Xu Liping, Director of the Center for Southeast Asian Studies at the Chinese Academy of Social Sciences, highlighted the railway’s potential to deepen trade relations between China and Vietnam. “Vietnamese goods can be transported more quickly and cost-effectively through China, thanks to its connection with the China-Europe freight train network, ” Xu said.
China and Vietnam have also agreed to accelerate the feasibility study for the Lao Cai-Hanoi-Hai Phong railway and other key rail projects, such as the Dong Dang-Hanoi and Mong Cai-Hai Phong standard gauge railways, to further strengthen cross-border rail connectivity.
The approval of this project is a signicant step towards the realization of the Pan-Asia Railway, an expansive network linking China with Southeast Asia. The Pan-Asia Railway aims to connect China to key Southeast Asian nations, including Laos, Thailand, Malaysia, and Singapore, promoting deeper integration of trade and supply chains. The China-Laos Railway, fully operational since 2021, has already transformed Laos into a land-linked hub, reducing transportation costs and expanding international logistics.
Similarly, the China-Thailand Railway is expected to further bolster the region’s connectivity. The second phase of Thailand’s high-speed rail project, approved in February 2025, will create a high-speed rail link between Thailand, Laos, and China, completing another key section of the Pan-Asia network.
As the railway network expands, countries like Malaysia are exploring proposals to extend their rail links further, potentially connecting to Thailand’s border, while Singapore’s rail connectivity with Malaysia also adds to the integration of Southeast Asia’s transport infrastructure. With the growing rail network, China and Southeast Asian nations are strengthening their economic ties.
China has been the largest trading partner of the Association of Southeast Asian Nations (ASEAN) for 16 consecutive years, and ASEAN has been China’s largest trading partner for five years in a row.
In 2024, bilateral trade between China and ASEAN reached 6.99 trillion yuan ($959 billion), reecting a 9.0 percent year-on-year growth. . As this railway network becomes a reality, it will further enhance connectivity and integration between China and Southeast Asia, facilitating more efcient trade and economic growth.
Source: Sri Lanka Guardian, February 21, 2025. https://slguardian.org/vietnam-approves-8-37b-railway-to…/
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