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Việt Nam and China Push $8.4 Billion Standard-Gauge Railway Expansion

Huỳnh Lam by Huỳnh Lam
16 April 2026
Reading Time: 3 mins read
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Việt Nam and China Push $8.4 Billion Standard-Gauge Railway Expansion

Tô Lâm and his wife, Ngô Phương Ly, pose for a photo with Xi Jinping and his wife, Peng Liyuan. Photo: Xinhua.

During morning talks on April 15, President Tô Lâm and Chinese President Xi Jinping emphasized that railway cooperation linking their two nations will be treated as the highest bilateral priority. 

Through three major railway projects in the northern border region, Việt Nam is positioning itself to become an important node in the regional and global logistics networks tied to China’s “Belt and Road” Initiative.

Latest Developments: In their discussions, Xi Jinping proposed further harmonizing the “Belt and Road” Initiative with the “Two Corridors, One Belt” framework by fast-tracking three standard-gauge railway projects. 

  • The Vietnamese delegation urged China to open its market “to the maximum” for Vietnamese goods to achieve a more balanced trade relationship. 
  • On the same day, the two countries signed an agricultural protocol that allowed the export of Vietnamese limes and pomelos to China.

The Details: The infrastructure push centers on three standard-gauge railway lines: Lào Cai – Hà Nội – Hải Phòng, Đồng Đăng – Hà Nội, and Móng Cái – Hạ Long – Hải Phòng. Currently, a massive logistical bottleneck exists at the border because Việt Nam’s railway system primarily relies on a 1,000 mm gauge, whereas China utilizes the standard 1,435 mm gauge, forcing cargo transshipment. Upgrading to a standard gauge would enable direct train operations, drastically reducing transport time and logistics costs.

The Backstory: The “Two Corridors, One Belt” framework was established in 2004 to bridge trade and infrastructure between northern Việt Nam and southern China. In 2013, Beijing launched the “Belt and Road” Initiative to develop trade networks across Asia and Europe, aiming to expand its global economic and political influence.

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Why It Matters: Although Việt Nam formally supported the initiative in 2015, the government historically maintained a cautious distance due to public apprehensions regarding Chinese construction quality, national security risks, and ongoing sovereignty disputes in the Biển Đông.

  • This cautious stance began to shift toward proactive engagement following General Secretary Nguyễn Phú Trọng’s visit to China in 2022. His visit focused on railway connectivity between the two countries.
  • By April 2025, during Xi Jinping’s state visit to Việt Nam, the nations formally expanded cooperation on these standard-gauge lines. This includes the massive Lào Cai – Hà Nội – Hải Phòng project, which is valued at 203.231 trillion đồng (nearly $8.4 billion USD) and directly links the vital port city of Hải Phòng to the Chinese border.
  • While welcomed by numerous developing nations, the Belt and Road Initiative faces sharp criticism from countries like the United States and Japan, who argue that the infrastructure program is a political tool designed to trap participating nations in unmanageable debt.

Huỳnh Lam wrote this article in Vietnamese and published it in Luật Khoa Magazine on April 16, 2026. The Vietnamese Magazine has the copyrights of the English translation.

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Huỳnh Lam

Huỳnh Lam

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