Prime Minister Urgently Directs $8 Billion Rail Mega-Project Spanning Six Provinces and Cities

Prime Minister Pham Minh Chinh has mandated the commencement of Component Project 1 of the Lao Cai – Hanoi – Hai Phong railway line by December 19, 2025. This directive underscores the government's commitment to advancing critical infrastructure projects, ensuring timely execution and adherence to the specified timeline.

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The Vietnamese Government Office has issued Announcement No. 579, detailing the conclusions of Prime Minister Pham Minh Chinh, Head of the Steering Committee, at the fourth meeting of the Steering Committee for Key National Railway Projects.

A key highlight from the meeting was the Prime Minister’s emphasis on ensuring the groundbreaking of Component Project 1 of the Lao Cai – Hanoi – Hai Phong railway line, funded domestically, on December 19, 2025.

The Ministry of Construction has been tasked with leading the coordination efforts with local authorities in Hai Phong, Hanoi, and Bac Ninh to finalize the route and locations of the remaining stations—Nam Hai Phong, Yen Thuong, and Kim Son—by October 2025.

Additionally, the Ministry of Construction will collaborate with China to discuss technology transfer for the Lao Cai – Hanoi – Hai Phong railway project.

The Lao Cai – Hanoi – Hai Phong railway project spans approximately 419 km with a total investment of nearly 8.4 billion USD.

To secure funding for the project, the Ministry of Finance has been directed to expedite negotiations and sign a framework loan agreement for the railway line. They are also tasked with proposing the issuance of government bonds and allocating 5% of development investment funds for the 2026–2030 period to ensure financial readiness.

The Ministry of Industry and Trade will lead efforts, in collaboration with Vietnam Electricity, to review and guide the project investor on power supply, electrical systems, and energy requirements to support the railway projects.

The Ministry of Agriculture and Rural Development, along with the Ministry of Natural Resources and Environment, are required to expedite the appraisal and approval of the Environmental Impact Assessment Report and forest land conversion dossiers for Component Project 1.

Relevant local authorities must urgently review and accurately report capital needs to ensure timely allocation and coordination, preventing delays in land clearance. They must focus on completing land clearance to guarantee the start of Component Project 1 on December 19, 2025.

The Lao Cai – Hanoi – Hai Phong railway project spans approximately 419 km with a total investment of over 203 trillion VND (equivalent to 8.4 billion USD). The project passes through six provinces and cities: Lao Cai, Phu Tho, Hanoi, Bac Ninh, Hung Yen, and Hai Phong.

The starting point is at the border rail connection between the new Lao Cai Station and Hekou Station (China), located in Lao Cai City. The endpoint is at Lach Huyen Port in Hai Phong City.

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