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The Congress Proposes a Resolution to Invest in an $8.3 Billion Railway Project

18 February, 2025

Minister of Transport Tran Hong Minh presents the Proposal on the investment policy for the Lao Cai – Hanoi – Hai Phong railway project

Aiming for substantial completion by 2030

On behalf of the Prime Minister, Minister of Transport Tran Hong Minh presented the Proposal on the investment policy for the Lao Cai – Hanoi – Hai Phong railway project. The goal of this project is to construct a modern, synchronized railway line that meets domestic and international transport demands between Vietnam and China. It will serve as a crucial catalyst for rapid and sustainable socioeconomic development, leveraging the advantages of the Lao Cai – Hanoi – Hai Phong economic corridor. The project aims to ensure effective connectivity with the domestic and international railway network while also addressing national defense, security, and international integration, along with environmental protection and climate change adaptation. It will further propel the country’s industrialization and modernization.

In terms of investment scope, the starting point is at the cross-border rail connection between the new Lao Cai station and Ha Khau Bac station in China, while the endpoint is at the Lach Huyen terminal, traversing nine provinces and cities. The main line is approximately 390.9 km long, with three branch lines totaling about 27.9 km.

Regarding investment scale, the project entails constructing a new electrified railway with a standard gauge of 1,435 mm for mixed passenger and freight transport. The design speed for the section from the new Lao Cai station to the Nam Hai Phong station is 160 km/h, while the section through the Hanoi hub is designed for 120 km/h, and the connecting sections and branch lines are designed for 80 km/h. Land acquisition for the main line will follow the double-track scale, with immediate investment focusing on a single-track scale.

The project will employ centralized traction technology for both passenger and freight trains. The information and signaling systems will be comparable to those used on several mixed passenger and freight railway lines in the region.

According to Minister Tran Hong Minh, the preliminary estimate for land use is approximately 2,632 hectares, and the number of people requiring resettlement is about 19,136. The proposed investment form is public investment, with a preliminary total investment amount of around VND 203,231 billion (approximately USD 8.369 billion).

Concerning the implementation timeline, the feasibility study report is planned for completion by 2025, with the aim of substantially completing the project by 2030.

To ensure the project’s success and timely completion, the Government proposes the application of 19 specific and special mechanisms and policies, 15 of which have already been approved by the National Assembly for the high-speed North-South railway project (Resolution No. 172/2024/QH15). Additionally, four other mechanisms and policies are being proposed.

The application of certain specific and special mechanisms and policies is essential.

As presented by Vu Hong Thanh, Chairman of the Economic Committee, the project meets the criteria for a national important project, requiring the National Assembly’s consideration and decision on the investment policy. The project’s documentation also complies with the requirements of the Public Investment Law.

Regarding the project’s necessity, the Economic Committee agreed with the Government on its essential nature, citing key political and legal grounds, along with practical reasons outlined in the Proposal.

Concerning investment scope, investment scale, technical standards, and design speed, the Economic Committee generally concurred with the Government’s proposal. Some suggestions were made to clarify technology transfer, operation, and exploitation post-completion to prevent technological dependence and to ensure the project meets dual-use requirements for national defense and security.

On the alignment, the Economic Committee suggested that the project’s alignment should closely follow the Noi Bai – Lao Cai and Hanoi – Hai Phong expressways to minimize land acquisition, compensation, support, and resettlement. This would also reduce the negative impact of land encasement between the railway and expressway. They recommended that during the feasibility study phase, the Government direct relevant agencies to carefully review and select the optimal alignment option to ensure the project’s connectivity with the national railway network, urban railways, and other transport systems.

Regarding stations and technical operation stations, some opinions highlighted the need to clarify the distinction between the concepts of stations and technical operation stations, as well as the necessity and principles of arranging these technical operation stations. There were also suggestions to expand the scale of certain stations (Lao Cai and Bao Thang) and to locate stations in alignment with local planning (Yen Vien) to meet local development needs.

On the investment plan, the Government proposed a phased investment approach, initially constructing a single-track line while acquiring land and providing compensation, support, and resettlement based on the double-track scale. The Economic Committee agreed with this proposal, considering the limited resources, the not-yet-high transport demand on this route, and the existing expressway and railway (with a 1,000 mm gauge) on the Lao Cai – Hanoi – Hai Phong economic corridor. The completion of the second track will be considered based on future demand.

The Economic Committee acknowledged the project’s long-term strategic importance and its massive scale, along with the complex technological requirements. They emphasized that the Government’s proposal to apply specific and special mechanisms and policies is crucial for ensuring the project’s feasibility and effectiveness.

Accordingly, based on a review of the special policies for the high-speed North-South railway project and the characteristics of this project, the Government proposed the application of 15 policies outlined in Resolution No. 172/2024/QH15, to which the Economic Committee expressed basic agreement.

Nhat Quang

– 08:20 14/02/2025