The project is being funded through public investment with an estimated budget of approximately 203.231 trillion VND (equivalent to 8.369 billion USD) and is aiming for completion by 2030. The railway will begin at the cross-border rail connection point between the new Lao Cai Station and Hekou North Railway Station (China), and it will end at the Lach Huyen port area in Hai Phong City.
A bold and timely decision
Lao Cai - Hanoi - Hai Phong Railway will serve both passenger and freight transportation, passing through nine provinces and centrally governed cities, namely Lao Cai, Yen Bai, Phu Tho, Vinh Phuc, Hanoi, Bac Ninh, Hung Yen, Hai Duong, and Hai Phong. The main route will span approximately 390.9 kilometres, with three branch lines totalling 27.9 kilometres.
The project is designed with varying speeds including 160 kilometres per hour on the main line between the new Lao Cai Station and Nam Hai Phong Station; 120 kilometres per hour in the Hanoi urban area, and 80 kilometres per hour for the remaining sections. Additionally, the existing railway line (1,000-millimetre gauge) is expected to continue handling domestic passenger transport, short-distance tourism routes, and specific freight types directly connected to the rail network.
In terms of economic and social impact, Deputy Minister of Construction Nguyen Danh Huy said that the Lao Cai - Hanoi - Hai Phong Railway project will help reduce transportation costs, increase the competitiveness of goods, restructure the transport market in a more reasonable manner, and lower environmental pollution, towards enhancing national competitiveness and ensuring sustainable development.
Vu Dai Duong, Vice Chairman of the Lao Cai Tourism Association, highlighted that Hanoi - Lao Cai traffic has already improved in recent years. However, the new high-speed railway (160 kilometres per hour) will make travel even more convenient, significantly shortening the distance between Lao Cai and the Red River Delta provinces. This will attract more tourists to Lao Cai and surrounding regions while strengthening the province’s position as a key economic hub and a gateway for trade between Vietnam and neighbouring countries.
Luu Trung Kien, Vice Chairman of the Van Yen District People's Committee (Yen Bai Province), noted that Van Yen will have the longest railway segment in Yen Bai (52 out of 77 kilometres in the province). Once completed, the project will transform the district’s landscape and improve the livelihoods of ethnic minority communities in the area.
Thanks to possessing many key seaports, Hai Phong is positioned to become a major economic hub. Le Trung Kien, Standing Member of the City Party Committee and Head of Hai Phong Economic Zone Authority, emphasised that the recent government approval of the Hai Phong Coastal Economic Zone further strengthens the city's role in trade and industry.
Ensuring timely and cost-effective execution
To meet the groundbreaking deadline in the late 2025 set by the Government, the Ministry of Construction acknowledges the significant challenges and pressure involved. According to Deputy Minister Nguyen Danh Huy, similar projects worldwide typically require 36-42 months of preparation before construction can begin. To prevent budget overruns and delays, a number of measures will be implemented, including hiring capable international consultants to prepare bidding documents and legal advisory during contract negotiations. To achieve the goals set out in the project, the coordinated effort from central to local authorities are needed.
In fact, to successfully implement and soon complete the project on schedule, the Government will adopt 15 out of 19 special policies previously approved for the North-South high-speed railway, along with four new policy adjustments.
The National Assembly Standing Committee has confirmed that for this high-priority project, the Government will ensure balanced budget allocation within medium-term public investment plans while maintaining macroeconomic stability and national debt safety.
Specifically, for the 2021-2025 mid-term period, the Government has allocated 128 billion VND within its public investment plan. The required funding for subsequent phases includes 177.282 trillion VND for 2026-2030 period, and 25.821 trillion VND for 2031-2035 term. The project's financing will come from domestic capital, foreign capital, and other legal sources. Regarding land use, the preliminary total land requirement is approximately 2,632 hectares, including about 716 hectares of rice cultivation land, 709 hectares of which sees two or more rice crops per year; about 878 hectares of forestry land; and about 1,038 hectares of other types of land as regulated by land law, with a total resettled population of approximately 19,136 people.
While supporting the plan, National Assembly Chairman Tran Thanh Man stressed the need for minimising impact on residential areas and forest land; thorough planning for land acquisition, compensation, and resettlement; strategic station placement for optimal connectivity; updating unit price standards; modern technology integration; and environmental protection. The efforts aim to prevent delays that could lead to cost overruns or outdated technology, thereby avoiding waste of national investment resources.
