NA greenlights major railway project to boost northern economic corridor

A Vietnam - China freight train (Photo: VNA)

Hanoi – Vietnam’s plan to build a railway connecting the northern border province of Lao Cai with the capital city of Hanoi and the northern port city of Hai Phong has taking a step forward with the signing of a resolution on its investment policy by National Assembly Chairman Tran Thanh Man.

The project envisions a modern and integrated railway system designed to meet growing domestic transportation needs while enhancing international connectivity. The railway will serve as a critical catalyst for rapid and sustainable economic development along the Lao Cai-Hanoi-Hai Phong economic corridor while strengthening national defence and security. Additionally, it will promote industrialisation and modernisation, contributing to realising the targets and missions outlined in the documents of the 13th National Party Congress and the Party’s resolutions.

The new railway will span approximately 390.9 kilometers for the main route, with 27.9 kilometers of branch lines. The project will pass through the nine localities of Lao Cai, Yen Bai, Phu Tho, Vinh Phuc, Hanoi, Bac Ninh, Hung Yen, Hai Duong, and Hai Phong. Starting at the border crossing point in Lao Cai province, the line will terminate at Lach Huyen station in Hai Phong city.

The project entails constructing a new single-track rail line with a 1,435 mm gauge, designed to accommodate both passenger and freight services. The main route, from new Lao Cai station to Nam Hai Phong station, will be designed for speeds of up to 160 km/h. Sections through Hanoi will operate at 120 km/h, while the remaining parts will run at 80 km/h.

The 15th NA adopts a resolution on the investment policy of the Lao Cai – Hanoi – Hai Phong railway project, with 455 out of 159 participating deputies voting in favour, at the 9th extraordinary session in Hanoi on February 19. (Photo: VNA)

As a public investment initiative, the railway will employ modern electrified rail technology to ensure safety, efficiency, and operational harmony.

The preliminary land requirement for the project is approximately 2,632 hectares, with an estimated 19,136 people needing to be resettled. The initial investment is projected to exceed 203.2 trillion VND (7.96 billion USD), to be funded through state budget allocations across multiple mid-term public investment plans and other legal sources of financing.

A feasibility report is expected to be completed by 2025, with the project set to be finished by 2030 at the latest.

Regarding special mechanisms and policies for the project, the Prime Minister will be authorised to issue government bonds to cover any shortfalls in the annual investment plan approved by the parliament, without increasing the state budget deficit. The project will also be eligible to access Official Development Assistance (ODA) and preferential foreign loans without making proposals./.