Lao Cai-Hanoi-Hai Phong railway hoped to boost Vietnams 2nd largest economic corridor
The railway will be newly constructed with the goal of connecting to the Hai Phong international seaport and facilitating multimodal transport with China, says Nguyen Khanh Tung, Deputy Director of the Railway Project Management Board under the Ministry of Construction.
April 5, 2025 at 13:05:00
Hanoi (VNA) - A 403km railway connecting Lao Cai, Hanoi, and Hai Phong will be built to meet the growing passenger and freight transport demands of the countrys second-largest economic corridor, an official has said.
Nguyen Khanh Tung, Deputy Director of the Railway Project Management Board under the Ministry of Construction, said the total investment for the railway project is estimated at 194.9 trillion VND (7.6 billion USD).
It will pass through nine provinces and cities, namely 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.
He said that the railway will be newly constructed with the goal of connecting to the Hai Phong international seaport and facilitating multimodal transport with China. This is in line with the implementation of the "Belt and Road Initiative" and the "Two Corridors, One Belt" cooperation plan. 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.
Tung emphasised that during the selection of foreign contractors, the bidding requirements will include regulations that contractors must prioritise 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, Tung said that decentralising authority and assigning responsibility to localities will allow them to take the initiative in the preparation process. 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.
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The Lao Cai-Hanoi-Hai Phong railway project will require a large workforce for exploitation, operation and maintenance. (Photo: VietnamPlus)
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 maximising 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, Tung stated.
The feasibility report is slated for approval in the third quarter of 2025, with construction expected to begin by the year-end./.
'Determined to start construction of high-speed railway on the North-South axis in December 2026'
Prime Minister Pham Minh Chinh requested breakthrough development, determined to start construction of the high-speed railway project on the North-South axis in December 2026.
VTC News
VTC News
29/03/2025
On the evening of March 29, at the Government Headquarters, Prime Minister Pham Minh Chinh chaired the first meeting of the Steering Committee for key projects and important national projects in the railway sector.
Minister of Construction Tran Hong Minh said that the National Assembly has approved three important railway projects. These are the high-speed railway project on the North-South axis; the investment project to build the Lao Cai-Hanoi-Hai Phong railway; and the piloting of a number of special policies and mechanisms, especially urban railways in Hanoi and Ho Chi Minh City.
Prime Minister Pham Minh Chinh chaired the first meeting of the Steering Committee for key projects and national important projects in the railway sector.
Prime Minister Pham Minh Chinh chaired the first meeting of the Steering Committee for key projects and national important projects in the railway sector.
For the high-speed railway project on the North-South axis, up to now, the project preparation agencies and consultants have built a schedule, expected to start construction in 2027. Minister Tran Hong Minh said that the process of working with international consultants and assessing the time to prepare a feasibility study report will take from 30 to 48 months.
Therefore, shortening the schedule to start the project in December 2026 is very difficult and has potential risks of being difficult to implement as planned.
"Recommend the Government to submit to the National Assembly Standing Committee for permission to supplement the mechanism on contractor appointment, including consulting until later on construction and procurement contents. The Prime Minister allows construction to start at the end of 2027, according to the draft submitted by the Ministry of Construction to the Government.
In case construction must start in December 2026, the Ministry of Construction will try to implement procedures to start construction, creating momentum for some sections such as Hanoi - Vinh... as a basis for starting construction on the entire route by the end of 2027."
Prime Minister Pham Minh Chinh pointed out that the railway system is the lifeline of transport, playing a key role in socio-economic development, connecting regions and promoting international integration, so determination must be high, efforts must be great, and the high-speed railway project on the North-South axis must be started.
The Prime Minister suggested focusing on removing difficulties, speeding up progress, and concentrating on site clearance work.
The Prime Minister suggested focusing on removing difficulties, speeding up progress, and concentrating on site clearance work.
"We must work together, we must launch a general offensive to win; we must do it very urgently. Previous projects that took more than ten years to complete the railway line could not develop. We require breakthrough development, determined to start construction of the high-speed railway project on the North-South axis in December 2026," said Prime Minister Pham Minh Chinh.
Regarding the investment project to build the Lao Cai - Hanoi - Hai Phong railway, the Prime Minister said that this is the first long-distance high-speed railway connecting with China, so it is necessary to coordinate with China to ensure harmonious interests between the two countries.
Construction of this railway line is expected to start in December 2025. The Prime Minister requested to clearly calculate preferential loans, bond issuance... to implement the railway line, creating space for development.
For the Hanoi - Lang Son and Hai Phong - Ha Long - Mong Cai railway routes, the Prime Minister suggested prioritizing the two connecting sections from Lang Son - Hanoi and Mong Cai - Hai Phong to exploit potential and develop tourism.
'Determined to start construction of high-speed railway on the North-South axis in December 2026' - 3
The Prime Minister suggested focusing on removing difficulties, speeding up progress, and concentrating on site clearance. Accordingly, localities need to prioritize allocating resources, closely coordinating with the Ministry of Construction and investors to complete the project on schedule, ensuring the legitimate rights of the people.
Mobilizing investment capital: Review financial mechanisms, diversify capital sources (budget, ODA, PPP), and closely manage to avoid loss and waste.
The Prime Minister paid special attention to putting people and businesses at the center. Projects must aim to serve the people, improve service quality, reduce congestion, protect the environment and promote sustainable development. It is necessary to listen to the opinions of the community and businesses to adjust the plan appropriately.
Regarding the urban railway projects in Hanoi and Ho Chi Minh City, the Prime Minister requested the People's Committees of Hanoi and Ho Chi Minh City to report on the implementation of urban railway projects in their localities to the Standing Office of the Steering Committee for updating the general report.
The Ministry of Finance has completed the procedures and reported to the Prime Minister for consideration and approval of the proposal for the Line 3 project, Hanoi Station - Yen So (Hoang Mai) section. The Ministry of Finance will soon give its opinion on stopping the use of ODA capital and foreign preferential loans for the project and adjusting the capital source for the Ho Chi Minh City urban railway project, Line 2, Ben Thanh - Tham Luong section.
Vietnams railway industry gears up for major boost
Vietnams railway industry can draw valuable lessons from countries that have successfully developed their domestic railway sectors.
March 15, 2025 at 14:00:00
Hanoi (VNA) - Vietnams railway sector is set for a significant uplift as the nation prepares for the nearly 8.37 billion USD Lao Cai - Hanoi - Hai Phong railway project, which was approved by the National Assembly and scheduled to begin construction in late 2025.
A launching pad
The Lao Cai - Hanoi - Hai Phong railway project presents a valuable opportunity for domestic enterprises to adapt and gradually establish the foundation for a modern railway industry. This project is expected to pave the way for larger ambitions, such as the high-speed North-South railway and urban rail projects, a senior leader of the Vietnam Railways Corporation (VNR) said following the National Assemblys approval of the projects investment policy on February 19.
A day earlier, the government had submitted Report No. 109/BC-CP to the National Assembly, addressing draft resolutions and clarifying feedback from parliamentary members on the projects investment policy. The report devoted significant attention to the acquisition, transfer, and mastery of railway technology.
A development plan for the entire railway sector has already been approved by the Politburo under Official dispatch No. 11376-CV/VPTW on September 18, 2024, regarding the high-speed North-South railway investment policy.
Under this plan, Vietnams railway industry aims to achieve full control over construction engineering and local assembly while gradually localising vehicles and components for national and urban rail systems by 2045.
The plan also envisions domestic production and step-by-step localisation of hardware and software for information, signalling, and power supply systems, alongside mastering operation and maintenance capabilities.
For the Lao Cai - Hanoi - Hai Phong railway project, the pre-feasibility study report outlines key areas for technology transfer. These include the acquisition of machinery and equipment suitable for producing locomotives and carriages for the national railway (with speeds below 200 km per hour) and the procurement of designs for urban railway production. For production and assembly technology transfer, the government plans to assign qualified domestic enterprises to form joint ventures with foreign partners.
Once the investment policy is approved and funding is secured for factory development and technology transfer, the VNR could manufacture vehicles for both national and urban railways and gradually produce components and spare parts for high-speed rail.
Pham Huu Son, General Director of the Transport Engineering Design Inc. (TEDI) - the lead consultant for the pre-feasibility study report - noted that the projects planned 160 km/h rail technology aligns well with Vietnams conditions. This provides an excellent opportunity for domestic construction and railway engineering firms to deepen their involvement and eventually master the technology.Alongside the North-South high-speed railway project, this initiative serves as a foundation for developing Vietnams railway and supporting industries, a TEDI representative stated.
Early moves
According to the Vietnam Railway Authority, as of January 2025, 35 domestic railway-related facilities are involved in manufacturing, maintenance, repair, and production of locomotives, carriages, and railway equipment. Despite this infrastructure, the railway industry remains underdeveloped. Most railway equipment and components still rely on imports, and domestic production capacity is limited by outdated and fragmented technology.
The sectors annual production value averages just 343 billion VND (13.7 USD million), highlighting significant challenges amid the rapid progress of Industry 4.0, noted Tran Thien Canh, Director of the Vietnam Railway Authority.
In preparation for the Lao Cai - Hanoi - Hai Phong railway project, the industry has made strategic moves to enhance its technological capabilities. In February 2025, the Ministry of Industry and Trade established a drafting committee to develop a support industry plan aimed at modernising railway manufacturing and integrating it with other industrial sectors.
The VNR has also proposed forming joint ventures between domestic and international partners, with local companies holding controlling stakes. To ensure the success of these ventures, the VNR has suggested three special mechanisms: establishing a preferential pricing framework for domestic railway enterprises, designating railway industrial products as key mechanical products, and revising land and asset valuation policies to boost capital and competitiveness.
This is a critical step toward becoming a supplier of materials and components for major projects like the Lao Cai - Hanoi - Hai Phong railway, the North-South high-speed railway, and urban rail systems in Ho Chi Minh City and Hanoi, said Dang Sy Manh, Chairman of the VNRs Board of Members.
Lessons from global railway development
Vietnams railway industry can draw valuable lessons from countries that have successfully developed their domestic railway sectors. Nations like China, Spain, and Poland have gradually increased localisation rates through joint ventures with major global integrators such as Kawasaki (Japan), Siemens (Germany), Alstom (France), and Bombardier (Canada).
Strategic steps from procurement to full system operation have enabled domestic enterprises to master system design, train assembly, and production of hardware and software for railway operations.
In the initial stages, government investment in infrastructure and comprehensive procurement combined with tax incentives on land and imported goods has been crucial in supporting the industry's development. By establishing specialised research centres equipped with advanced experimental tools and software for economic, technical, and environmental analysis has provided a strong foundation for innovation.
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กระทรวงการก่อสร้างเวียดนามเพิ่งประกาศรับฟังความคิดเห็นเกี่ยวกับร่างเอกสารแผนผังสถานีรถไฟแห่งชาติบางแห่งในเขตเมือง สถานีชุมทาง และสถานีขนส่งต่อเนื่องหลายรูปแบบระหว่างประเทศ (ga liên vận quốc tế)
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