(Yicai) Jan. 3 -- Construction work on the first standard-gauge railroad between China and Vietnam is expected to kick off by the end of this year and wrap up by 2030, a report cited the Southeast Asian country’s prime minister as saying.

Spanning nearly 400 kilometers, the Lao Cai-Hanoi-Haiphong railroad will connect with China’s rail network at Hekou in Yunnan province, Pham Minh Chinh said on an inspection tour of the project in northern Vietnam, Xinhua News Agency reported on Dec. 23. Total investment in the new line is about USD11.6 billion, he said.

Pham said that the standard railroad gauge is 1.43 meters in China and one meter in Vietnam. To ensure a seamless connection with the Chinese rail system, the new project will require close cooperation between the two countries in both design and construction, he noted.

Vietnam's favorable stance on China-Vietnam railroad cooperation underlines its recognition of China’s advanced high-speed rail technology, Zhou Shixin, director of Shanghai Institutes for International Studies' Southeast Asian Studies Center, told Yicai.

The China-built light rail project in Hanoi has garnered widespread acclaim since its opening, further enhancing China's reputation in railroad construction, Zhou also pointed out.

Trade between China and Vietnam using railroads has been growing rapidly, with both countries investing in improving the infrastructure and making it easier for companies to use the service. Besides the Lao Cai-Hanoi-Haiphong project, China and Vietnam plan to link arms on the Lang Son-Hanoi and Mong Cai-Ha Long-Haiphong standard gauge railroads.

The Vietnamese authorities also revealed late last year that work on the North-South high-speed rail project connecting Hanoi with Ho Chi Minh City is expected to begin in 2027, with the line fully open by 2035.

"The North-South high-speed railroad will significantly reduce travel times, boost tourism, business exchange, and labor mobility while effectively addressing logistics challenges posed by increasing foreign investment and manufacturing activities," said Le Cong Giang, a visiting fellow at Singapore's ISEAS-Yusof Ishak Institute.

Vietnam is actively exploring working with China on high-speed rail construction, leveraging the success Chinese firms have already achieved in Southeast Asia, according to analysts. The Jakarta-Bandung high-speed railroad, China’s first full export of high-speed rail technology, has been in running for more than a year, and the China-Laos rail link has driven rapid growth in freight trade since its launch in late 2021, they said.

Japan, South Korea, Germany, and Spain have also expressed interest in the North-South high-speed railroad project.

Editor: Martin Kadiev