Asian Rail Freight Surges Amidst Deepening China-ASEAN Trade Ties

The strategic importance of rail infrastructure in facilitating growing trade between China and Southeast Asian nations has become increasingly evident, as freight volumes along key cross-border routes continue to rise.

In 2025, freight trains departing from China’s Guangxi Zhuang Autonomous Region to Vietnam transported a record 37,000 twenty-foot equivalent units, representing an 86 percent year-on-year increase. To meet rising demand, weekly container train services on this route expanded from three to fourteen, alongside improvements in hauling capacity and operational efficiency.

At the same time, the China–Laos Railway continued to strengthen its role as a major regional logistics corridor. Cross-border freight volumes increased significantly, with millions of tons of cargo moved during the year, supporting trade in industrial goods, electronics and agricultural products. Overall freight throughput on the line has continued to climb, reflecting its growing importance in regional supply chains.

These gains have been supported by multilateral trade frameworks such as the Regional Comprehensive Economic Partnership and upgraded ASEAN–China trade agreements, which have reduced tariffs and improved trade facilitation. As a result, rail transport has become a more competitive and cost-efficient option for cross-border freight movement.

Industry observers note that ongoing investments in rail infrastructure are likely to unlock further trade potential between China and ASEAN countries. Major projects under development, including Thailand’s planned rail connection linking Bangkok to the broader regional network, are expected to enhance connectivity between mainland Southeast Asia and southern China in the coming years.

Together, these developments highlight a broader trend toward deeper regional economic integration driven by modern transportation networks. The expanding use of cross-border rail freight underscores its growing role as a key enabler of commerce, efficiency and connectivity across Asia.

Source: Yicai Global