Government proposes VND86.1 trillion boost for Lao Cai-Hanoi-Hai Phong railway
The Government proposed increasing the preliminary investment for the Lao Cai-Hanoi-Hai Phong railway project by more than VND86,100 billion (US$3.28 billion), citing updated development plans, higher transport demand, and strategic policy changes.
On August 6, the Government proposed a significant VND86.1 trillion (US$3.28 billion) increase to the preliminary investment budget for the Lao Cai-Hanoi-Hai Phong railway project. Minister of Construction Tran Hong Minh presented the proposal at the first extraordinary session of the 16th National Assembly.
The adjustment stems from updated development plans, heightened transport demand, and policy changes. The proposal aligns with new strategic objectives and revised transport demand forecasts, which guided recent major strategies, including double-digit economic growth targets and a Vietnam-China joint declaration for enhancing international rail transport in 2026.
Several elements of the national master plan, rail network blueprint, and sectoral modifications have also been revised, influencing the railway's scope. Forecasts for transport demand have changed, leading to the addition of an 8.4-kilometer extension between Yen Vien and Gia Lam, a shift in the location of the northern passenger terminus, and the integration of two new branches linking the existing rail system to stations along the Lao Cai-Hanoi-Hai Phong corridor.
As a result, the project's preliminary investment is now projected at VND289.339 trillion (approximately US$11.4 billion), a substantial increase of VND86.108 trillion from the previously approved amount by the National Assembly. National Assembly Committee for Economic and Financial Affairs Chairman Phan Van Mai highlighted the significant nature of the revised investment estimate.
The Committee recommended further scrutiny of investment benchmarks, cost structures, and comparisons with analogous railway projects to clarify the rationale behind the new figure. The Committee also emphasized the need for improvements in transport demand forecasting, updates to socio-economic and financial efficiency metrics, and clearer assessments of capital recovery and loan repayment frameworks.
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