Vietnam plans $10 billion railway modernization to connect with China

This photo taken on Feb 26 2018 shows a regional express train of the French national railway company SNCF AFP-Yonhap — This photo taken on Feb. 26, 2018, shows a regional express train of the French national railway company SNCF. AFP-Yonhap

SEOUL, October 17 (AJP) - Vietnam's Railway Authority has submitted plans to modernize a 427-kilometer rail line connecting the border city of Lao Cai to Hanoi, Hai Phong, and Ha Long, VNA reported on Thursday. The project, estimated to cost 179 trillion dong ($9.8 billion), aims to enhance trade with China and is slated to begin construction in 2030.

The upgraded railway, expected to transport 8.3 million passengers and 17.5 million tons of cargo annually, will replace a century-old narrow-gauge line built during French colonial rule. This modernization will make the Vietnamese section compatible with Chinese railways, addressing current incompatibility issues.

The plan aligns with China's Belt and Road Initiative, with both countries recently signing agreements to prioritize rail connectivity. Chinese Premier Li Qiang's recent visit to Vietnam reinforced this commitment to expanded cooperation.

Separately, Vietnam is pursuing a $67 billion high-speed rail project linking Hanoi and Ho Chi Minh City, with parliamentary approval expected soon.

Candice Kim candicekim1121@ajupress.com