A key example of this shift is the cross-border rail route linking China and northern Vietnam, where containers departing from Nanning arrive at Yen Vien Station in under 14 hours—significantly faster than traditional road or maritime journeys that can take up to 45 hours. The “overnight delivery” model is reshaping trade efficiency, particularly along the Hanoi–Dong Dang corridor, where close to 100 containers are now transported daily.
According to Nguyen Chi Nam, Deputy General Director of Vietnam Railways Corporation, the integration of inland customs clearance has been a key enabler. By allowing goods to be processed at inland stations rather than border checkpoints, the system has improved convenience and significantly increased international rail freight volumes.
Vietnam’s rail network is also extending its reach beyond China, with cargo now moving onward to markets including Mongolia, Russia and parts of Central Asia and Europe.
Cost Efficiency and Supply Chain Resilience
Intermodal rail transport is gaining traction amid rising sea freight volatility and road congestion, offering cost savings of between 30% and 40% compared to road transport. In 2025, rail freight volumes between Vietnam and China reached approximately 500,000 tonnes, with a further 27,000 tonnes shipped to third-country destinations.
Officials say rail is also proving to be a more resilient logistics option in the face of geopolitical uncertainties affecting maritime routes.
Nguyen Danh Huy noted that Vietnam’s rail connectivity through China to Europe provides a strategic opportunity to integrate into global logistics networks. He highlighted rail’s advantages, including high capacity, competitive costs, all-weather operations and reduced exposure to disruptions in key maritime chokepoints.
Infrastructure Gaps and Strategic Investments
Despite strong growth—intermodal rail volumes rose nearly 30% over the past year—Vietnam’s existing rail infrastructure remains a limiting factor. Current systems operate at speeds of up to 60 km/h, significantly lower than the 120 km/h speeds of freight trains in China. In addition, reliance on diesel locomotives and limited border infrastructure continue to constrain efficiency.
To address these challenges, Vietnam has approved the Lao Cai–Hanoi–Hai Phong railway project, a major infrastructure initiative valued at over US$8.3 billion. Spanning approximately 390 km across nine provinces, the line will adopt the international standard gauge of 1,435 mm and support speeds of up to 160 km/h.
The project is progressing rapidly, with land clearance documentation expected to be finalised by March 2026 and technical design contracts to be signed by April. Cross-border coordination efforts, including agreements on railway bridge connections, are also underway.
Industry stakeholders view the project as a transformative development for regional trade. Nguyen Huy Long said the new corridor would significantly boost economic activity and strengthen trade links between Lao Cai and China’s Yunnan province.
Additional plans are also being explored for an 83-km standard-gauge railway between Dong Dang and Hanoi to further enhance network connectivity.
Technology and Talent as Critical Enablers
As Vietnam transitions from its legacy metre-gauge system to international standards, experts stress the importance of investing in technical capabilities and workforce development.
Nguyen Van Binh, Chairman of the Vietnam Railway Economic and Transport Association, said human capital and technology transfer will be critical to successfully adopting modern rail systems, particularly as the country looks towards high-speed and advanced rail operations.
Vietnam’s evolving rail strategy reflects a broader ambition to move beyond traditional logistics models. By leveraging intermodal rail, the country aims to establish itself as a vital link in global trade corridors, strengthening its competitiveness and resilience in an increasingly complex supply chain landscape.
