The Lao Cai - Hanoi - Hai Phong railway project is expected to generate approximately 90,000 jobs during construction and around 2,500 permanent jobs during operation.

This afternoon, the National Assembly Standing Committee will discuss the investment policy for the Lao Cai - Hanoi - Hai Phong railway project.

The Vietnamese government has submitted a proposal requesting parliamentary approval for the project, which aims to develop a modern, high-standard railway to meet domestic and international transportation needs, particularly in trade with China.

A strategic transportation corridor

The railway is envisioned as a key economic driver, enhancing connectivity and trade along the Lao Cai - Hanoi - Hai Phong economic corridor. The project is designed to boost economic growth, improve logistics efficiency, and strengthen national defense and security.

The 390.9 km main line, along with 27.9 km of branch lines, will begin at Lao Cai Station, near the border with China, and terminate at Lach Huyen Port in Hai Phong. The railway will traverse nine provinces and cities and require an estimated $8.37 billion in investment.

According to the Ministry of Transport, the project will provide a $4.56 billion construction market, generating around 90,000 jobs during the construction phase and 2,500 permanent jobs once operational. If combined with future high-speed and urban railway projects, the railway sector could create millions of new jobs across Vietnam.

In addition to job creation, the railway will help develop Vietnam’s domestic railway industry, supporting local manufacturers and supply chains. The Ministry of Transport is advocating for policies prioritizing local contractors and suppliers, ensuring that Vietnamese enterprises play a central role in construction, maintenance, and technology transfer.

Given the scale and technological complexity of the project - similar to the North-South high-speed railway - the Ministry of Transport has proposed 15 special policy exemptions for parliamentary approval, with an additional four policy amendments to facilitate progress.

One key proposal includes mandatory technology transfer from international contractors to Vietnamese firms, ensuring knowledge transfer, workforce training, and local industry participation.

These policies align with global best practices in railway infrastructure development, enabling Vietnam to gradually master railway technology and integrate into global supply chains.

N. Huyen