The upgraded railway, expected to transport 8.3 million passengers and 17.5 million tons of cargo annually, will replace a century-old narrow-gauge line built during French colonial rule. This modernization will make the Vietnamese section compatible with Chinese railways, addressing current incompatibility issues.
The plan aligns with China's Belt and Road Initiative, with both countries recently signing agreements to prioritize rail connectivity. Chinese Premier Li Qiang's recent visit to Vietnam reinforced this commitment to expanded cooperation.
Separately, Vietnam is pursuing a $67 billion high-speed rail project linking Hanoi and Ho Chi Minh City, with parliamentary approval expected soon.