Vietnam’s $8B China Rail Link Gets Green Light
Marian Schultz
▶February 19, 2025
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The Rundown: Vietnam has approved an $8 billion railway connecting its northern port city Hai Phong to China’s Yunnan province. The 390km route will run through key manufacturing zones and is part of Vietnam’s “Two Corridors, One Belt” initiative.
The Context:
- The railway will improve trade efficiency between the two communist-ruled nations, supporting global giants like Samsung and Foxconn that rely on Chinese components.
- China is providing financial support for the project through loans.
- Vietnam’s infrastructure has long struggled to keep pace with its growing economy, with an overburdened road network and underdeveloped rail system.
- The project follows a pledge by Vietnam and China to deepen ties during President Xi Jinping’s visit last year.
Why it Matters: As Vietnam cements itself as a top alternative to China for global manufacturing, better transport infrastructure is crucial to attracting more foreign investment. This railway strengthens Vietnam-China trade links while positioning Vietnam as a critical player in the global supply chain.
