Additional $3.3bn proposed for northern Vietnam railway project

Vietnamese Minister of Construction Tran Hong Minh on Wednesday submitted to the National Assembly a draft resolution to revise the investment policy for the Lao Cai-Hanoi-Hai Phong railway project.

Under the proposal, the project's preliminary total investment would rise to VND289.3 trillion ($11 billion), up VND86.1 trillion ($3.3 billion) from the level approved by lawmakers in 2025.

The increase in investment reflects updates to the project's scope, scale, construction volumes, unit costs, exchange rates, and related policies.

The government said the adjustment was necessary after revisions to national, railway network, and sectoral development plans, as well as the addition of several major projects along the railway corridor.

Changing transport demand forecasts have also prompted a series of modifications, including an additional 8.4-km section linking Yen Vien and Gia Lam, the relocation of the northern passenger hub station, and two branch lines connecting the existing railway network to stations along the route.

Another major change involves upgrading the section between Bac Hong Station and Nam Hai Phong Station from a phased single-track plan to a fully double-track railway.

The proposal also calls for diesel locomotives to be used on branch lines serving seaports instead of electric traction systems. These lines are expected to switch to clean-energy locomotives by 2045.

Reviewing the proposal, the National Assembly's Economic and Financial Committee described the increase in investment as substantial. 

 The committee warned that completing the double-track section during the 2026-2030 period would significantly raise both project costs and public funding requirements, while the government is also financing a number of other major national infrastructure projects. 

 It called for further assessment of the project's impact on the state's public investment resources before lawmakers decide on the final investment plan.