Vietnam approves $3 billion budget increase for China rail link

Vietnam's National Assembly has approved a revised plan for a key railway connection to China, increasing the project's estimated budget by an additional $3 billion. The decision, announced on Monday, raises the total projected cost of the line to 289 trillion dong, equivalent to roughly $11.1 billion.

The railway will link the northern border province of Lao Cai with the capital, Hanoi, and extend to the major port city of Haiphong. Under the updated plan, the main track and branch lines will span 426 kilometers, up from the 391 kilometers outlined in the earlier proposal. The route will also pass through the provinces of Phu Tho, Bac Ninh, and Hung Yen, areas that host several industrial parks.

Designed for speeds of up to 120 kilometers per hour, the system is one of three planned rail links between Vietnam and China. The government has set a target to complete construction by the end of 2030. Vietnam announced last year that it would receive loans from the Chinese government to support the project's financing.