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Vietnam Eyes Growth and Balance Through Landmark Cross-Border Rail Links With China

BusinessVietnam Eyes Growth and Balance Through Landmark Cross-Border Rail Links With China

HANOI – A new chapter in Vietnam-China relations is unfolding as the two countries move forward with plans to expand cross-border railway connections, promising stronger trade and tourism ties. The initiative gained momentum following Chinese President Xi Jinping’s visit to Hanoi last month, where both sides agreed to align their track systems and deepen cooperation.

At Hanoi Railway Station, 67-year-old Ma Ronghong and his tour group prepared to board a train bearing a red-and-white banner that read “Vietnam-China Friendship Train.”

“Good neighbors are better than distant relatives,” said Ma, a retiree from Chengdu, China. He’s visiting Vietnam for the first time on a 12-day journey by train and bus that began in Nanning, Guangxi province.

Currently, travelers and cargo must switch trains at the border due to Vietnam’s use of an older railway gauge that is incompatible with China’s high-speed network.

“Vietnam’s transport infrastructure isn’t as advanced as China’s,” Ma said. “But if they improve this last stretch, it will be a win-win for everyone.”

Such improvements may soon be on the horizon. Both countries have renewed efforts to link their railways, aiming to streamline travel and boost commerce.

“This will make the journey more comfortable,” said tour guide Zhou Jianwei. “Once the railways are connected, visiting Vietnam will be much easier and more enjoyable.”

Zhou’s agency began offering train tours to Vietnam a year ago. Since then, demand has grown rapidly, and tours now run five times a month—up from once monthly. Priced under $400, they offer an affordable alternative to air travel for multi-city trips.

“A direct train link would eliminate the hassle of train changes and customs checks,” Zhou said. “Everything would be smoother and simpler.”

Upgrading Connections

China and Vietnam are advancing three major rail projects. During President Xi’s recent visit, the countries agreed to standardize their railway gauges and conduct feasibility studies for two new lines. A third line—a 403-kilometer passenger and freight route—is scheduled to break ground in 2025.

That line will connect Kunming in southern China to Vietnam’s Lao Cai border crossing, continuing through Hanoi and ending at Hai Phong, a key international port. With 18 stations and speeds up to 160 km/h, the project is expected to modernize Vietnam’s colonial-era rail system.

The $8 billion project, to be partially funded by Chinese loans, could drastically cut travel and shipping times.

“If there’s a train, I’d definitely choose it over driving,” said 28-year-old freelancer Vi Dinh Tian. “It’s a good way to explore public transport options.”

“It’s also great for trade,” said 37-year-old driver Le Minh Quan. “Hai Phong has a major port, and a direct line would save time by bypassing Hanoi.”

Vietnam’s new president, To Lam, has called the rail links a “top priority” in infrastructure cooperation with China and urged Beijing to offer concessional financing.

According to Dr. Nguyen Khac Giang, a visiting fellow at the ISEAS–Yusof Ishak Institute, the strategy is part of Vietnam’s effort to grow economically while reducing reliance on any single foreign partner, including the United States.

“Rail projects like these will boost economic and trade ties with China,” Dr. Nguyen told Channel News Asia. He added that China is eager to deepen regional relationships amid ongoing trade tensions with the U.S.

Measured Approach

However, Dr. Nguyen emphasized that current agreements are limited to cross-border routes and do not include Vietnam’s more ambitious north-south high-speed rail project, which would cut travel time between Hanoi and Ho Chi Minh City to about six hours.

“Because these are border links, it makes sense for China to be the primary partner in funding and technical support,” he said.

By focusing cooperation on northern regions, Vietnam can mitigate potential risks associated with Chinese investment. If issues arise, their impact would be geographically contained.

“The north-south railway is a strategic project,” Dr. Nguyen said. “It spans the entire country, so it needs to be evaluated carefully with security and national interests in mind.”


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