Ho Chi Minh Times

Wednesday, Mar 18, 2026

Vietnam Plans $7.2 Billion Railway Linking to China's Yunnan Province

The 427-kilometer line aims to boost trade and connectivity between the two nations
Vietnam has unveiled an ambitious plan to construct a new railway connecting the northern province of Lao Cai with China's Yunnan Province, estimated to cost VND179 trillion ($7.2 billion), according to state media reports last Wednesday. The proposed 427-kilometer (265-mile) railway would pass through Hanoi and extend to the port cities of Hai Phong and Ha Long, enhancing regional connectivity and economic cooperation.

The Vietnam Railway Authority has submitted the plan to the Ministry of Transport for review and approval. Construction is expected to begin by 2030, with the railway projected to handle an estimated 8.3 million passengers and 17.5 million metric tons of cargo annually by 2050. This project is part of Vietnam's broader efforts to modernize its aging railway infrastructure, including a high-speed north-south line and improved links with China, its largest trading partner.

In addition to the Lao Cai-Ha Long line, Vietnam's National Assembly is expected to approve a separate $67-billion plan to build a 1,541-kilometer high-speed railway from Hanoi to Ho Chi Minh City, marking the country's largest-ever infrastructure project. Vietnam has been engaging with China for technology and funding support for these rail projects, aiming to enhance bilateral trade and connectivity.

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