Vietnam Moves $7.7B Rail Megaproject Toward Construction

Vietnam has begun early execution of a $7.7-billion rail megaproject linking its northern border with China to Hanoi and the Hai Phong port complicated, shifting one in every of Southeast Asia’s largest transport investments from legislative approval into preliminary development exercise.

The Lao Cai–Hanoi–Hai Phong railway was approved in February by Vietnam’s Nationwide Meeting, which licensed public funding in a brand new standard-gauge line designed to hold each freight and passengers. Authorities paperwork describe a hall working from the border rail in Lao Cai province by means of Hanoi to Lach Huyen station in Hai Phong.

The Nationwide Meeting set an goal of finishing the challenge by 2030 and directed the federal government to start making ready a feasibility report throughout 2025, whereas permitting sure preparatory and enabling actions to proceed in parallel.

Under the resolution, the road will use a 1,435-mm gauge and function at design speeds of as much as 160 kph on mainline segments outdoors Hanoi, with decreased speeds by means of city sections and on secondary strains. Vietnamese officers have mentioned the gauge alternative is meant to align the nation’s rail system with worldwide requirements and enhance interoperability with China’s community, significantly for freight visitors.

Implementation authority rests with the central authorities and the prime minister, with execution to be carried out by means of a specialised challenge administration board. Vietnam Railways is designated to imagine accountability for infrastructure administration and operations as soon as development is accomplished.

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Authorities statements issued earlier in December confirmed early execution has begun on a primary part of the challenge. 

Officers mentioned preliminary actions embrace work at a number of stations, whereas design work for added stations is underway and anticipated to advance in phases by means of 2026. Mainline observe development is predicted to start after finishing preparatory actions and acquiring feasibility-stage approvals.

Topographic and Geographical Challenges

From an engineering and supply standpoint, the authorized alignment factors to a fancy development program. 

The hall crosses 9 provinces, starting in mountainous border areas close to Lao Cai, passing by means of riverine and agricultural areas of the Pink River basin, threading dense city sections in and round Hanoi and terminating at coastal port amenities in Hai Phong. The decision authorizes various design speeds by section, reflecting the bodily and concrete constraints alongside the route.

The size of enabling work can also be substantial. The Nationwide Meeting estimated land wants at about 2,632 hectares and a displaced inhabitants of roughly 19,136 folks, assigning provincial folks’s committees accountability for land acquisition, resettlement and associated subprojects. 

Financing for the railway is structured as public funding and will draw on state price range allocations, authorities bonds and international concessional loans. The Nationwide Meeting explicitly licensed the mobilization of official growth help and international loans with out requiring separate approval procedures. 

Authorities statements earlier this yr indicated that Chinese language authorities loans are anticipated to kind a part of the financing, although detailed phrases haven’t been publicly disclosed.

To help development throughout various terrain, the decision contains particular necessities for sourcing materials. These provisions permit provincial authorities to switch mining licenses and capability for frequent development supplies wanted for the challenge, whereas adhering to environmental and security necessities.

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Whereas the Nationwide Meeting licensed versatile procurement mechanisms, together with the usage of EPC packages and direct contracting in particular circumstances, it additionally mandated enhanced oversight. The decision requires multi-agency participation in contractor value determinations and directs the State Audit Workplace to audit challenge implementation.

No contractors or designers have but been named, and no procurement schedule for important civil works or rail programs has been launched. Officers have mentioned the present focus stays on finishing feasibility work, detailed designs and enabling actions earlier than shifting into large-scale development.

Vietnamese authorities have described the railway as a cornerstone of the nation’s long-term transport and industrial technique, geared toward easing stress on highways, bettering export logistics and strengthening cross-border connectivity. 

As early work progresses and extra parts transfer towards procurement, the challenge is predicted to attract shut consideration from international rail contractors and designers evaluating one in every of Southeast Asia’s largest rail development applications shifting towards execution.