Vietnam - China Railway: Boosting Bilateral Economic Cooperation

Vietnam - China Railway Becomes a Strategic Infrastructure Project

Vietnam is entering a breakthrough phase in infrastructure with a series of strategic transport projects aimed at driving economic development and enhancing its position in the regional supply chain. 

Alongside the road network, the government is focusing on developing an intermodal railway system, with three Vietnam-China railway routes planned to begin construction in 2025, including the Lao Cai Hanoi Hai Phong route, the key artery from the northern border to major industrial centers and the largest northern seaports, facilitating trade with southwestern China; the Lang Son Hanoi route, supporting links with southern China’s industrial hubs; the Mong Cai Ha Long Hai Phong route, creating an additional strategic transport corridor and accelerating research on a high-speed North-South railway, opening a new era for Vietnam’s transport sector. 

With geographical proximity and deepening cooperative relations, Vietnam and China have many favorable conditions to develop intermodal railway routes to connect the region and promote trade between the two countries.

Three Vietnam-China Railway Routes: A New Growth Driver

As regional trade continues to expand, the demand for multimodal transport is increasing. While road, air, and sea routes are under pressure, rail transport has become a strategic choice to enhance trade between Vietnam and China. 

Due to historical reasons, Vietnam's main railway gauge is narrower than the standard gauge widely used in China and internationally. Therefore, constructing three standard-gauge railway routes will create synchronization, significantly improving connectivity efficiency not only within Vietnam but also between Vietnam and China. 

The most apparent advantage of Vietnam-China railways is the benefits they bring to the logistics and transport industry. Railway standardization minimizes border transshipment time and optimizes transport costs, especially for high-value goods requiring fast delivery. Logistics companies can expand intermodal services, directly connecting Vietnam to China without multiple transshipments, thereby contributing to rapid growth in bilateral trade. 

Manufacturing enterprises in processing and manufacturing industries will have additional options to transport raw materials between Vietnam and China, optimizing supply chains by leveraging rail transport for stable goods movement, reducing reliance on overloaded road and sea transport. With this network, cargo transit time from Vietnam to Chinese provinces will be reduced to just 2-4 days, doubling logistics turnover speed. This is not only an advantage for import-export businesses but also opens up connections from Vietnam to Central Asia, South Asia, the Middle East, and Europe through the Asia-Europe intermodal railway system.

Developing transport infrastructure expands economic opportunities. A modern railway system not only facilitates trade but also leads to the formation of industrial parks, urban areas, services, and tourism, fostering synchronized development across economic regions in Vietnam. In reality, economic, trade, and investment cooperation between Vietnam and China is growing rapidly. The construction of three new railway routes will not only enable businesses from both countries to maximize trade potential but also create a competitive advantage amid the shifting global supply chain landscape.

The upcoming groundbreaking of Vietnam-China railway routes will mark a significant step in promoting economic cooperation between the two nations while positioning Vietnam as a strategic logistics hub in Southeast Asia, increasing regional investment appeal.