Vietnam, August 2026 – Vietnam’s National Assembly has approved changes to the Lao Cai–Hanoi–Haiphong railway project, raising its estimated investment from VND203 trillion to VND289 trillion, equivalent to approximately US$11.1 billion. The revised project will cover 426 km of main and branch lines, compared with 391 km under the previous plan.
The railway will connect Lao Cai on the Chinese border with Hanoi and Haiphong, Vietnam’s major northern port city. The expanded route will also pass through Phu Tho, Bac Ninh and Hung Yen, areas containing major industrial parks. Trains will be designed to operate at speeds of up to 120 km/h, with the government maintaining an end-2030 completion target.
The increased investment reflects changes to the project's scope and infrastructure requirements. Earlier plans placed the project at about VND203.2 trillion, with the railway intended to support both passenger and freight services and provide a modern standard-gauge connection between Vietnam and China. The revised scheme increases the overall length and incorporates additional infrastructure to strengthen capacity along the corridor.
For the rail sector, the project is significant because it links three strategically important functions: cross-border trade, industrial production and maritime logistics. The Lao Cai connection will provide an interface with China’s railway network, while the Haiphong connection will give freight access to a major seaport. Vietnam has also indicated that Chinese government loans will contribute to financing the project.
The expanded investment reinforces Vietnam’s broader strategy of upgrading its railway network and strengthening northern economic corridors. With completion targeted for 2030, successful delivery will depend on managing the larger project scope, securing financing and coordinating construction across multiple provinces while maintaining interoperability with China’s rail network.
Source: Free Malaysia Today
Vietnam Raises Investment For Lao Cai-Hanoi-Haiphong Railway
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Vietnam is accelerating railway investment to strengthen connections with China and improve freight access to major industrial and maritime gateways. The National Assembly has approved an expanded scope for the Lao Cai–Hanoi–Haiphong railway, increasing its estimated cost by about US$3 billion while retaining the target for completion by 2030.
