Projected Lao Cai-Hanoi-Hai Phong railway requires a total investment capital of $7.6 billion

Vân Nguyễn

06/04/2025, 09:00

Foreign contractors selected through bidding are required to priorities using products, goods, and services that can be produced or supplied domestically.

(Illustrative  image)
(Illustrative image)

The projected Lao Cai-Hanoi-Hai Phong railway, with a total length of 403 km and running through nine centrally-run cities and provinces, namely Lao Cai, Yen Bai, Phu Tho, Vinh Phuc, Hanoi, Bac Ninh, Hung Yen, Hai Duong, and Hai Phong, will be newly constructed.  

The feasibility report is slated for approval in the third quarter of 2025, with construction expected to begin by the year-end.

According to Mr. Nguyen Khanh Tung, Deputy Director of the Railway Project Management Board under the Ministry of Construction, the total investment for the railway project is estimated at VND194.9 trillion ($7.6 billion).

Mr. Tung was quoted by the Vietnam News Agency on April 5 as saying that starting at the border crossing point in Lao Cai province and  terminate at Lach Huyen station in Hai Phong port city.  The projected railway will meet the growing passenger and freight transport demands of the country’s second-largest economic corridor.

According to the official, this is in line with the implementation of the "Belt and Road Initiative" and the "Two Corridors, One Belt" cooperation plan between Vietnam and China. It aims to meet the demand for high-quality, fast, convenient, and safe transport, while also reducing emissions.

The management board is preparing a feasibility study, including plans to train more than 2,400 personnel using project funds to operate the railway once completed, he added.

He emphasized that during the selection of foreign contractors, the bidding requirements will include regulations that contractors must priorities using products, goods, and services that can be produced or supplied domestically. There will also be commitments from contractors regarding technology transfer and workforce training for Vietnamese partners, enabling them to take control of management, operations, exploitation, and maintenance, gradually mastering the technology.

As some localities will advance provincial and municipal budgets for land clearance implementation,  decentralizing authority and assigning responsibility to localities will allow them to take the initiative in the preparation process,  Mr. Tung said, adding that this will enable them to ensure prompt implementation of land clearance and resettlement work along with the project approval process. It can help ensure a legal foundation, address challenges for localities in implementing compensation, support, and resettlement, and accelerate the land clearance progress for the project.

Regarding the transport corridor along the route, the Railway Project Management Board stated that under the national spatial development orientation, the country is structured around 13 economic corridors. The Lao Cai-Hanoi-Hai Phong economic corridor is the second-largest in terms of passenger and freight transport demand. Therefore, the construction of the Lao Cai-Hanoi-Hai Phong railway is primarily to serve the domestic passenger and freight transport needs along this economic corridor. It will also meet the demand for passenger and freight transport for imports, exports, and transit goods, thus maximizing the investment effectiveness of the project.

With the projected transport demand, the entire line is expected to have 18 stations. Additionally, 13 technical operation stations are to be set up to support the technical operations required for train services,  Mr.Tung said.

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Ấn phẩm

Vietnam Economic Times 406
Tạp chí Kinh tế Việt Nam số 21
Tạp chí Kinh tế Việt Nam số 20
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Tạp chí Kinh tế Việt Nam

số 22-2025

Thứ 2, 02/06/2025

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