Vietnam's government has proposed an additional $3.3 billion for the Lao Cai-Hanoi-Hai Phong railway project, increasing its preliminary total investment from $8.37 billion to $11 billion. This significant budget revision, submitted by Vietnamese Minister of Construction Tran Hong Minh, reflects updates to the project's scope, scale, construction volumes, unit costs, exchange rates, and related policies. The National Assembly had initially approved the project in 2025 with an investment of $8.37 billion, targeting completion by 2030.
The proposed increase is necessitated by revisions to national, railway network, and sectoral development plans, along with the inclusion of several major projects along the railway corridor. Modifications also include an 8.4-km extension linking Yen Vien and Gia Lam, relocation of the northern passenger hub station, and two branch lines connecting to the existing railway network. A major change involves upgrading the Bac Hong Station to Nam Hai Phong Station section from a phased single-track to a fully double-track railway.
The National Assembly's Economic and Financial Committee acknowledged the substantial nature of this investment increase. While recognizing the benefits of completing the double-track section, the committee cautioned about the significant rise in both project costs and public funding requirements, especially given other ongoing national infrastructure projects. They urged for further assessment of the project's impact on state public investment resources before a final decision.
The 417-kilometer railway, including a 389-kilometer main route and 27.9 kilometers of branch lines, aims to connect Lao Cai Province to Lach Huyen Station in Hai Phong City. It is expected to shorten cargo transport routes from China through Lao Cai and Hanoi to the international seaport of Hai Phong, thereby reducing logistics costs and fostering economic growth across northern Vietnam. The project is part of a broader effort to strengthen trade connectivity between Vietnam and China and is partially financed by Chinese loans, including from the Export-Import Bank of China.
