Vietnam Approves $8 Bln Railway Project Linking to China

Vietnam’s parliament has approved an $8 billion railway project that will connect the northern port city of Haiphong to China, marking a major step in strengthening trade and transportation ties between the two nations.

With 95 percent of lawmakers voting in favor, the project is set to establish a key transportation corridor passing through some of Vietnam’s major manufacturing hubs.

Global corporations such as Samsung, Foxconn, and Pegatron operate factories in these areas, many of which rely heavily on a steady flow of components from China.

The new railway will span 390 kilometers, stretching from Haiphong to the mountainous city of Lao Cai, which borders China’s Yunnan province.

The route will also pass through the capital, Hanoi. The project will be partially financed through Chinese loans.

Construction costs are expected to exceed $8 billion, making it one of Vietnam’s most ambitious infrastructure projects.

This railway is one of two planned lines that will link Vietnam to China as part of the “Two Corridors, One Belt” initiative, which is an extension of China’s Belt and Road Initiative (BRI).