Vietnam’s US$8 billion railway to China gets the go ahead

It is one of two railway lines to China that Vietnam plans as part of its ‘Two Corridors, One Belt’ initiative

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A Vietnamese man walks with his bicycle along a railway track in Hanoi last week. Photo: AFP

Published: 10:44am, 19 Feb 2025Updated: 11:26am, 19 Feb 2025

Vietnam’s parliament on Wednesday approved plans for an US$8 billion rail link from its largest northern port city to the border with China, boosting links between the two communist-ruled countries and making trade easier.

The new rail line will run through some of Vietnam’s key manufacturing hubs, home to Samsung, Foxconn, Pegatron and other global giants, many of whom rely on a regular flow of components from China.

The route will stretch 390km (242 miles) from the port city of Hai Phong to the mountainous city of Lao Cai, which borders China’s Yunnan province, and will also run through the capital Hanoi.

China will provide some funding through loans for the project, which is expected to cost more than US$8 billion.

It is one of two railway lines to China that Vietnam plans as part of its “Two Corridors, One Belt” initiative, which connects to Beijing’s belt and road global infrastructure programme.

The approval comes just over a year after the neighbours pledged to deepen ties during a visit to Vietnam by President Xi Jinping, as Beijing sought to counter growing US influence with Hanoi.

Vietnam’s transport infrastructure is considered relatively weak, with a road network struggling to keep up with demand and an underdeveloped rail system.

The country is an increasingly favoured destination for foreign businesses looking for an alternative to China, but low-quality infrastructure is seen as holding back surging investment.