Investment for Lào Cai-Hà Nội-Hải Phòng railway project raised to US$11.05 billion

Investment for Lào Cai-Hà Nội-Hải Phòng railway project raised to US$11.05 billion

The project will stretch about 363km from the cross-border rail connection in Lào Cai to Nam Hải Phòng Station, with another 63km of branch lines.

National Assembly deputies vote to approve the resolution adjusting the investment policy for the Lào Cai-Hà Nội-Hải Phòng railway project. — VNA/VNS Photo

The National Assembly has approved the Government's proposal to raise the preliminary investment for the Lào Cai-Hà Nội-Hải Phòng railway project to nearly VNĐ289.34 trillion (US$11.05 billion), up around VNĐ86.14 trillion from the original estimate.

The adjustment was approved on August 24 at the first extraordinary session of the 16th National Assembly, following the Government's proposal to revise the project's investment policy.

The railway was initially approved in February 2025 with an estimated investment of VNĐ203.2 trillion. The higher figure reflects more detailed calculations at the feasibility study stage, updated construction costs, material prices and compensation and resettlement policies through 2026.

Construction and equipment costs account for the largest increase, rising by VNĐ51.21 trillion, while compensation, support and resettlement costs rise by around VNĐ34.85 trillion. Project management, consultancy and other costs increase by around VNĐ163 billion, while contingency costs fall by VNĐ114 billion. Construction is targeted for substantial completion by 2030.

The project will stretch about 363km from the cross-border rail connection in Lào Cai to Nam Hải Phòng Station, with another 63km of branch lines. The route will run through six provinces and cities – Lào Cai, Phú Thọ, Hà Nội, Bắc Ninh, Hưng Yên and Hải Phòng.

The railway will use a 1,435mm standard gauge and carry both passengers and freight. Designed speeds will reach 160km per hour on the Lào Cai-Nam Hải Phòng section, 120km per hour through the Hà Nội metropolitan area and 80km per hour on other sections.

Double tracks will be built from Bắc Hồng Station to Nam Hải Phòng and from Yên Viên to Gia Lâm, while other sections will be a single track.

Electric traction will power the main line and the Yên Viên-Gia Lâm branch. Branches serving seaports will initially use diesel traction, with a planned transition to clean-energy locomotives.

In its resolution, the National Assembly also requires the Hải Phòng municipal People's Committee to mobilise funding and ensure efficient investment in the branch linking Nam Hải Phòng and Nam Đồ Sơn, in coordination with development of the Nam Đồ Sơn port area.

Minister of Construction Trần Hồng Minh said the project is exceptionally large and technologically complex, marking the first railway project of this scale and technological requirements in Việt Nam. He stressed that updated policies and new factors had prompted the Government to seek adjustments to ensure the project's objectives are met.

The National Assembly received 62 comments from lawmakers on the proposed adjustments. They focused on the rationale and effectiveness of the changes, implementation progress, transparency and safety, as well as the feasibility and balance of funding sources.

The Government incorporated lawmakers' recommendations before the revised investment-policy resolution was submitted for approval. 

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