China-Vietnam rail projects to benefit region

In Vietnam's Vinh Phuc Province, around 50 kilometers north of Hanoi, preparations are underway for launching the construction of a cargo terminal on the railway connecting to China later this year.

The terminal carries expectations for faster, closer bilateral links, according to Yap Kwong Weng, CEO of Vietnam SuperPort, an 83-hectare multimodal logistics port developed as a joint venture between Vietnam's T&T Group and Singapore's YCH Group.

In January, the company signed a memorandum of understanding with the China Railway 16th Bureau Group to construct a railway freight terminal inside its port and integrate it into Vietnam's national railway network.

The partnership aims to streamline cross-border freight transport between China and Vietnam while enhancing regional logistics integration by establishing the port as a central shipment hub along the Lao Cai-Hanoi-Hai Phong railway, the company said.

According to Vietnam's Ministry of Construction, the country is ramping up efforts to accelerate the development of three railway projects connecting with China on three lines: the Lao Cai-Hanoi-Hai Phong, the Lang Son-Hanoi, and the Mong Cai-Ha Long-Hai Phong routes in northern Vietnam.

In April, the two sides decided to have the groundbreaking ceremony on Dec 19 for the Lao Cai-Hanoi-Hai Phong project, with construction expected to be completed by 2030. The projects are among a series of agreements reached during Chinese President Xi Jinping's state visit to Vietnam in mid-April.

A China-Vietnam railway cooperation mechanism was also launched to assist Vietnam in aligning its railway gauge with China's standardized gauge, thereby boosting economic connectivity and development.

Yap told China Daily that the railway project connecting Vietnam with China is "one of the most important infrastructure projects "for both countries. "It will be a significant game changer for infrastructure connectivity."

Starting at Lao Cai near Vietnam's border with Southwest China's Yunnan province, the Lao Cai-Hanoi-Hai Phong railway has a total planned length of nearly 419 kilometers, with investment estimated at over $8.3 billion.

The investment in the railway will create about 90,000 jobs during construction and about 2,500 long-term jobs once it is operational, according to local media.

In April, Vietnam's Deputy Minister of Construction Nguyen Danh Huy said cross-border railway projects are expected to enhance bilateral trade, connect Vietnam to China's railway network to further reach Central Asia and Europe, and link China to other Association of Southeast Asian Nations member countries via Vietnam.

The deepening of China-Vietnam connectivity reflects the important alignment between the China-proposed Belt and Road Initiative and Vietnam's Two Corridors and One Economic Circle strategy, said Sun Fenglei, chairman of the China Chamber of Commerce in Vietnam.

Various sectors

Apart from railway links, enhanced connectivity between China and Vietnam has been seen in various sectors, contributing to regional trade and logistics exchanges.

In April, construction began on a cross-border bridge connecting Basa in Hekou county, Yunnan province, and Vietnam's Bat Xat district in Lao Cai, while China's domestically developed C909 passenger jet began commercial operations in Vietnam.

In May, Chinese freight vehicles operating under the Greater Mekong Subregion Cross-Border Transport Facilitation Agreement reached Vietnam's inland regions directly for the first time through a newly opened international road transport route between the two countries. The new route can save each truck about a day in transport time and up to $139 in costs.

The cross-border passenger train service, suspended for five years due to the COVID-19 pandemic, resumed on May 25. It connects Nanning in South China's Guangxi Zhuang autonomous region and Gia Lam station in Vietnam's capital, Hanoi.

Sun told China Daily that integrating multimodal transport networks, including railways, roads and aviation, will significantly enhance trade efficiency between the two countries, reduce logistics costs, and facilitate the efficient flow of goods, capital and information.

"It will also promote deeper integration of industrial and supply chains," said Sun, adding that improvements in transport infrastructure will also attract more enterprises to invest in Vietnam.

Sun said this will eventually improve Chinese companies' access to ASEAN and broader regional markets.

Following the railway cargo terminal deal, Vietnam SuperPort signed an MoU with Xiamen Port, located in the coastal city of Xiamen in East China's Fujian province, to establish a "hub-to-hub" logistics partnership between the two countries.

As road transport accounts for about 70 percent of Vietnam's cargo transport, Yap of Vietnam Super-Port said he hopes the improved infrastructure, supported by railways, will help cut down the goods transit time by 20 percent.

kelly@chinadailyapac.com