Hanoi: China and Vietnam have agreed to move forward on long-discussed railway projects during Chinese President Xi Jinping’s official visit to Hanoi, with the two sides signing a deal to begin feasibility studies for two major rail lines.
According to a cooperation document cited by Reuters, the feasibility assessments—valued at approximately 9.95 million yuan ($1.36 million)—will evaluate plans for a railway connecting Guangxi in southern China to Vietnam’s capital, Hanoi, as well as a second line linking the port cities of Shenzhen and Haiphong.
Vietnamese leader To Lam emphasized the urgency of the projects, calling the proposed railways a top priority for bilateral infrastructure collaboration and urging Beijing to offer favorable loan terms.
Though China and Vietnam have often struggled to advance cross-border railway plans—due in part to historical tensions and mistrust—the current push reflects a mutual economic interest, especially as concerns grow over potential U.S. tariffs. Xi has encouraged stronger supply chain integration, noting that many Chinese-made components are assembled in Vietnam before export.
Currently, a rail line exists between Guangxi’s capital Nanning and Hanoi, but operational inefficiencies persist due to incompatible railway gauges—a legacy of Vietnam’s French colonial past.
Meanwhile, a third planned rail route, connecting Vietnam’s northern coastline to Kunming in China’s Yunnan province, is expected to break ground this year. Vietnam's parliament estimates the project will cost $8.3 billion on its side, with partial financing anticipated from China, though no loan details were announced during Xi’s visit.
The cooperation agreement sets a 12-month timeline for the studies to be conducted once a contractor is chosen, though no specific date has been provided for when that selection will occur. Xi’s trip is set to conclude on Tuesday with the formal launch of the "Vietnam-China Railway Cooperation" initiative.
