Vietnam Adds Another 3.3 Billion Dollars to Rail Link with China
Macro
Vietnam's parliament has approved an additional investment of more than 86 trillion dong, or about 3.3 billion dollars, for the railway project connecting to China, after land acquisition and site clearance problems delayed the project. This budget increase brings the project's total investment to 289.3 trillion dong, with the government setting a completion deadline of no later than 2030. The 363-kilometer railway will link the port city of Haiphong, pass through Hanoi, and reach Lao Cai province on the Chinese border. It is one of three rail routes Vietnam plans to connect its northern region with China. Vietnam's Ministry of Construction said in June that the project was at least eight months behind schedule because it is Vietnam's first railway of this type, requiring advanced technology and coordination with foreign partners, along with problems acquiring land and relocating people from the construction area. The rail line will pass through six northern provinces, use a total area of about 2,075 hectares, and involve the relocation of about 25,544 people.
