No money, no need: Experts question proposed rail line to China

Experts query the government’s ability to raise funds for a proposed VND100 trillion $4.3 billion railroad line to the China border and its requirement.
no money no need experts question proposed rail line to china

A train going from the port city of Hai Phong to northern Lao Cai Province. Photo by VnExpress/Giang Huy.

The proposed Lao Cai – Hanoi – Hai Phong Railway will run up to the Hekou County railway station in China’s Yunnan Province. In Vietnam, from the border province of Lao Cai, it will run 392 kilometers to the port city of Hai Phong through Hanoi.

Vietnam is nearing the debt ceiling enshrined in its laws and also has several other key rail projects that require huge sums of capital, a representative of the Vietnam Railway Transport and Economic Association (VRTEA) told the media.

The capital for this project would possibly come from the government’s coffers or international loans since railway projects are costly and do not attract private investment, he said.

In 2014 the Ministry of Transport had invited the private sector to invest in 16 rail projects, but only one managed to attract funding.

Nguyen Ngoc Dong, then Deputy Minister of Transport, explained this is because railroad projects are three or four times as expensive as roads but take a long time to recover their investment, making private investors wary.

The VRTEA expert said Vietnam has many other rail projects it needs to focus on and also earmarks money for subsidies for existing routes.

The transport ministry and the railway sector are already studying a new north-south high-speed railway that is expected to cost $58 billion, which has already sparked controversy over its lack of clarity regarding financial efficiency, as well as where the capital will come from, he said.

Meanwhile, the current north-south railway is in dire need of maintenance and upgrade, given that it is decrepit, he added. "The government needs to focus on completing existing projects instead of launching new ones; then none end up being completed."

Many multimillion-dollar railroad maintenance and upgrade projects are on hold for lack of capital. For instance, repairs to the 131-kilometer line from Hanoi to Ha Long, scheduled to be finished in 2011, are yet to be completed, he said.

Pham Chi Lan, economist and a former member of the prime minister’s research department, said the new project costs too much of taxpayers’ money. There already is a railroad route from Hai Phong to the China border, and the volume of goods that needs to be transported is not so great as to justify building a whole new line.

The $4.3 billion could instead be used to address the severe lack of transport infrastructure in the Mekong Delta and roads between the delta and Ho Chi Minh City since this is hampering the development of HCM City, Vietnam’s growth driver, she said.

There are sufficient roads between Hai Phong City and Lao Cai Province, precluding the need for the new rail route, she added.

The China Railway No.5 Engineering Group, the Chinese consultant for the project, is producing a final report. It has estimated that the route will cost VND100 trillion ($4.3 billion) and require 1,650 hectares of land.

The route will also have 73 large bridges with a total length of 130km, 25 tunnels totaling 25km and nine existing stations and 29 new ones.

It will carry an estimated 10 million tons of cargo a year with 15 trains running every day in each direction.

The existing railway route between Lao Cai Province on the border and Hai Phong has a maximum designed speed of 80 km, but it is of poor quality, according to the transport ministry.

Source: vnexpress

Related News

Imported automobiles show a declining trend in early December

Imported automobiles show a declining trend in early December

VCN - The volume of completely built-up (CBU) automobiles imported into Vietnam witnessed a sharp decline in the first half of December 2024, according to preliminary statistics released by the General Department of Vietnam Customs​
Accelerating official fruit and vegetable exports to China

Accelerating official fruit and vegetable exports to China

VCN - Vietnamese businesses must update and meet China's increasingly stringent food safety requirements.
Imports of textile and footwear materials soar amid robust industry growth

Imports of textile and footwear materials soar amid robust industry growth

VCN - Vietnam's appetite for raw materials in the textile and footwear sectors surged to new heights, with China firmly holding its position as the dominant supplier.
Vietnam’s exports to the U.S. near US$100 billion milestone

Vietnam’s exports to the U.S. near US$100 billion milestone

VCN - By the end of October, Vietnam's exports to the United States approached US$100 billion, reaffirming its position as Vietnam's largest export market.

Latest News

Việt Nam tightens fruit inspections after warning from China

Việt Nam tightens fruit inspections after warning from China

The Plant Protection Department has urged local authorities and relevant agencies to strengthen the inspection and monitoring of durian cultivation areas and export packing facilities following a warning from China.
Brand building key to elevate Vietnamese fruit and vegetable sector: experts

Brand building key to elevate Vietnamese fruit and vegetable sector: experts

Trade promotion, product introduction and brand promotion also need to be innovated to attract customers effectively.
Freight transport via China-Việt Nam cross-border trains posts rapid growth

Freight transport via China-Việt Nam cross-border trains posts rapid growth

The Nanning branch of China Railway Group Limited reported a sharp increase in freight transport on the China-Việt Nam cross-border railway last year, with trains departing from Guangxi carrying a total of 19,670 containers, marking a staggering annual increase of 1,153 per cent.
Vietnamese retail industry expects bright future ahead

Vietnamese retail industry expects bright future ahead

With a young and dynamic population, rising incomes and increasing urbanisation, the sector is emerging as one of the most promising engines for economic expansion in the coming years.

More News

Complying with regulations of each market for smooth fruit and vegetable exports

Complying with regulations of each market for smooth fruit and vegetable exports

VCN - According to Mr. Dang Phuc Nguyen (photo), General Secretary of the Vietnam Fruit and Vegetable Association (Vinafruit), with the development momentum and increasing consumption demand from the Chinese market, the Vietnamese fruit and vegetable industry is setting new records and is expected to reach an export turnover of US $10 billion by 2030. With great potential and advantages in developing agricultural products, Vietnam has been affirming its position as one of the world's leading agricultural exporters.
Fruit and vegetable industry aims for $10 billion in exports by 2030

Fruit and vegetable industry aims for $10 billion in exports by 2030

Based on impressive export results in recent years, Việt Nam’s fruit and vegetable industry has set a target of achieving US$10 billion in export value by 2030, according to the Việt Nam Fruit and Vegetables Association.
GDP grows by over 7 per cent, exceeds target for 2024

GDP grows by over 7 per cent, exceeds target for 2024

The growth rate is relatively impressive for the 2011-24 period, only lower than the rates of 2018, 2019 and 2022.
Vietnamese pepper: decline in volume, surge in value

Vietnamese pepper: decline in volume, surge in value

In December 2024, Việt Nam exported 15,265 tonnes of pepper of all types, including 12,771 tonnes of black pepper and 2,494 tonnes of white pepper, generating a total turnover of $100.6 million.
Việt Nam maintains position as RoK’s third largest trading partner

Việt Nam maintains position as RoK’s third largest trading partner

Việt Nam continued solidifying its position as the Republic of Korea (RoK)’s third-largest trading partner in 2024, trailing only China and the US, marking the third consecutive year of the significant trade relationship.
Greater efforts to be made for stronger cooperation with European-American market

Greater efforts to be made for stronger cooperation with European-American market

The European-American Market Department (MoIT) will monitor regional developments and explore opportunities to strengthen Việt Nam’s economic and trade ties.
Leather, footwear industry aims to gain export growth of 10% in 2025

Leather, footwear industry aims to gain export growth of 10% in 2025

The footwear sector will still focus on exporting to available and easy-access markets such as Africa and Asia to increase revenue.
Grasping the green transformation trend - A survival opportunity for Vietnamese Enterprises

Grasping the green transformation trend - A survival opportunity for Vietnamese Enterprises

VCN - Green transformation not only helps enterprises minimize the risk of being eliminated from important export markets, but also creates opportunities to build sustainable brands, enhance product value and reach high-end customer segments globally.
Việt Nam to complete database of five domestic manufacturing industries in 2026

Việt Nam to complete database of five domestic manufacturing industries in 2026

The project to build a comprehensive database of domestic industries aims to enhance the capacity and efficiency of trade remedy investigations. It also serves as a strategic tool to protect domestic production.
Read More

Your care

Latest Most read
Việt Nam tightens fruit inspections after warning from China

Việt Nam tightens fruit inspections after warning from China

The Plant Protection Department has urged local authorities and relevant agencies to strengthen the inspection and monitoring of durian cultivation areas and export packing facilities following a warning from China.
Brand building key to elevate Vietnamese fruit and vegetable sector: experts

Brand building key to elevate Vietnamese fruit and vegetable sector: experts

Trade promotion, product introduction and brand promotion also need to be innovated to attract customers effectively.
Freight transport via China-Việt Nam cross-border trains posts rapid growth

Freight transport via China-Việt Nam cross-border trains posts rapid growth

The Nanning branch of China Railway Group Limited reported a sharp increase in freight transport on the China-Việt Nam cross-border railway last year, with trains departing from Guangxi carrying a total of 19,670 containers, marking a staggering annual increase of 1,153 per cent.
Vietnamese retail industry expects bright future ahead

Vietnamese retail industry expects bright future ahead

With a young and dynamic population, rising incomes and increasing urbanisation, the sector is emerging as one of the most promising engines for economic expansion in the coming years.
Complying with regulations of each market for smooth fruit and vegetable exports

Complying with regulations of each market for smooth fruit and vegetable exports

VCN - According to Mr. Dang Phuc Nguyen (photo), General Secretary of the Vietnam Fruit and Vegetable Association (Vinafruit), with the development momentum and increasing consumption demand from the Chinese market, the Vietnamese fruit and vegetable indu
Mobile Version