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Vietnam Unveils Ambitious $8.7 Billion Railway Project Connecting Lao Cai, Hanoi, and Hai Phong

Vietnam proposes $8.7 billion Lao Cai–Hanoi–Hai Phong railway

New Railway Link Proposed in Vietnam

The Railway Project Management Board, part of the Ministry of Transport, has unveiled plans for a new railway system connecting Lao Cai, Hanoi, and Hai Phong, with an estimated budget of 211.03 trillion VND (around $8.7 billion).

This initiative is set to be financed mainly through concessional loans from China and targets to improve regional links while fostering economic growth.

Railway Specifications

The railway will feature an international standard gauge of 1,435 mm and will be electrified for efficiency.

It will connect the Lao Cai border station to Hekou North Station in China, passing through Hanoi and culminating at Lach Huyen Port in Hai Phong.

The total length of the main line is approximately 388.35 km, divided into:

  • 383.24 km from Lao Cai Station to Lach Huyen Port Station.
  • 5.11 km linking Lao Cai Station to the border railway.

Branch lines will consist of:

  • 7.89 km from Nam Hai Phong to Nam Dinh Vu Port.
  • 2.18 km connecting Yen Thuong Station to Yen Vien Station.

This railway will pass through nine provinces and cities: Lao Cai, Yen Bai, Phu Tho, Vinh Phuc, Hanoi, Bac Ninh, Hung Yen, Hai Duong, and Hai Phong.

A total of 30 stations are planned, including three for assembly, 19 mixed-use, and eight technical stations.

Operational Parameters

The railway is designed for speeds of 160 km/h on the main line, 120 km/h in urban sections through Hanoi, and 80 km/h on border and branch lines.

The project will be executed in two phases:

  • Phase 1 (by 2030): Focus on constructing a single-track railway while preparing land for future development.
  • Phase 2 (post-2050): Expanding to a double track and developing additional branch lines to Nam Dinh Vu.

Funding Overview

The estimated budget for the project is 211.03 trillion VND, which translates to 62.58 billion yuan or about $8.7 billion.

Construction and related costs will primarily be funded by 135.6 trillion VND from Chinese loans, covering various expenses including equipment and design fees.

Additionally, 75.43 trillion VND will be provided from Vietnamese funds for project management and related costs like land clearance and consultancy services.

The timeline for execution is approximately six years, commencing upon project approval and loan finalization.

This railway proposal is in line with Prime Minister Pham Minh Chinh’s goals to present the investment plan to the National Assembly by February 2025, aiming for construction to begin by December 10, 2025.

The railway’s development is expected to enhance trade with China and reinforce the economic framework of the region.


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