Lao Cai – Hanoi - Hai Phong railway to foster Vietnam - China trade

A strategic project

According to the plan, the rail line will stretch 417 km, connecting 9 cities and provinces, namely Lao Cai, Yen Bai, Phu Tho, Vinh Phuc, Hanoi, Bac Ninh, Hung Yen, Hai Duong and Hai Phong. It also helps facilitate connection with Hai Phong international seaport, and rail connection with China; meeting the demand for high-quality, fast, convenient and safe transportation.

The Vietnam Railway Authority said that the railway route will connect the national railway with seaports, concentrated industrial parks, and tourist areas, in order to promote the effectiveness of railway transport, meeting the industrialization and modernization cause of the country.

The Lao Cai - Hanoi - Hai Phong rail line will stretch 417 km, connecting 9 cities and provinces Photo: Vietnam Railways

Talking with reporter of the Newspaper of Industry and Trade, transportation expert, Dr. Phan Le Binh - Chief Representative of OCG Japan Consulting Office, said that the planning of the Lao Cai - Hanoi - Hai Phong intermodal railway route has strategic significance in socioeconomic development, especially in improving Vietnam’s transport capacity.

Accordingly, the railway route not only connects key economic regions in the Northern region, but also creates an effective transport corridor between international seaports and inland, especially border areas.

“Regarding the demand for domestic transport, the Hanoi - Lao Cai section has a high demand for passenger transport, mainly tourists going to Sapa. So far, there are tourist trains connecting to Lao Cai, but the transport capacity remains limited and the travelling time is still long, as the trains have to pass weak bridges and go through tunnels that require speed restrictions,” the expert explained.

Dr. Phan Le Binh believes that the new railway line will certainly help increase passenger transport capacity, and at the same time stimulating the demand for freight transport.

A trading gateway between Vietnam and China

Expert Phan Le Binh agreed with the opinion that the route plays an important role of a trading gateway between Vietnam and China.

Specifically, railways are considered a low-cost and environmentally friendly mode of transport compared to roads. Accordingly, this railway will open a new transport channel with China, contributing to optimizing the flow of goods from the border through logistics centers and seaports, and reducing pressure on roads, limiting traffic congestions and accidents.

Along with that, the continuous transportation of goods between regions also ensures that the supply chain is uninterrupted. However, Dr. Binh said the biggest challenges are still site clearance, and financial issues. “While we have to allocate prioritized capital for the development of the North-South high-speed railway, the allocation of an estimated US$11 billion for this project will be a big challenge for the country’s financial system.”

In addition, according to experts, due to the rugged mountainous terrain which could lead to the long construction period and increase in investment capital, the State needs to carefully study the appropriate route, avoid delays in construction, and limit impacts on the environment and people’s lives.

Recently, during the inspection on the construction sites of the new Lao Cai - Hanoi - Hai Phong railway project connecting Vietnam with China, Prime Minister Pham Minh Chinh requested the Ministry of Transport and related units to further speed up the submission of the project. Accordingly, the Prime Minister directed that when designing, a new railway line must be the shortest and straightest route.

Specifically, the Government leader asked relevant ministries, agencies to complete the project’s dossiers, especially investment policies and mechanisms for submission to the Government in January 2025 and the National Assembly one month later so that the project could start construction no later than December 2025.