Vietnam approves additional $3.8b spending for China rail link

Vietnam's National Assembly on Monday (Aug 24) approved changes to a railway link to China that would require an additional US$3 billion (S$3.8 billion) in estimated spending.

The railway will run from the northern province of Lao Cai bordering China through the capital Hanoi to the major port city of Haiphong.

The total length of the main track and branch lines will now be 426 km, compared with 391 km in the previous plan.

The estimated overall cost has been raised to 289 trillion dong ($14 billion) from 203 trillion dong previously.

The system, in which trains can operate at speeds of up to 120 kph, will also run through other provinces including Phu Tho, Bac Ninh and Hung Yen, home to several industrial parks.

The government aims to complete construction by the end of 2030.

Vietnam said last year it would receive loans from the Chinese government for the project.

The system is one of three planned rail lines linking Vietnam with China.

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