China and Vietnam have begun advancing plans to improve rail connectivity, following Chinese President Xi Jinping’s visit to Hanoi this week. According to an agreement reviewed by Reuters, the two countries will conduct feasibility studies for two proposed railway lines. This effort highlights a shared interest in strengthening infrastructure and trade ties, especially amid rising concerns over U.S. tariffs.
For years, China and Vietnam have discussed modernizing two colonial-era railways built by the French over a century ago. They have also proposed building a new coastal railway link to boost cross-border logistics. During the visit, President Xi urged Vietnam to enhance supply chain integration. He noted that many products assembled in northern Vietnam rely on components made in China before export.
Vietnam’s top leader, To Lam, called the railway projects the “highest priority” in infrastructure cooperation with China. He also encouraged Beijing to provide concessional loans to support development. A cooperation document dated April 14 confirms that China will fund feasibility studies for two of the railway lines. The studies will cost 9.95 million yuan, or roughly $1.36 million.
Officials plan to start the studies within 12 months after selecting a contractor, though they have not yet set a deadline for the selection. The agreement covers a rail line connecting China’s Guangxi region to Hanoi and another route linking Shenzhen with Haiphong. Currently, a railway from Nanning in Guangxi to Hanoi exists, but travelers and goods must change trains at the border. The mismatch in track gauges—Vietnam uses a narrow-gauge system from the colonial era—prevents seamless travel.
For decades, mistrust between the two communist nations has delayed infrastructure progress. The two sides fought a border war in the late 1970s and continue to clash over the South China Sea. Despite these tensions, economic needs appear to be outweighing political concerns. Both sides are now showing renewed interest in moving projects forward.
Earlier this year, Vietnam’s parliament announced that construction would begin in 2024 on a third rail line. This railway will link Vietnam’s northern coast to Kunming in China. Vietnamese officials estimate their portion of the project will cost $8.3 billion. They plan to finance part of it through Chinese loans. The new line will also follow a route dating back to the French colonial period.
So far, neither side has confirmed loan agreements during Xi’s visit, which is expected to end on Tuesday. However, the visit will include the launch of a “Vietnam-China Railway Cooperation” initiative. This step reflects growing momentum behind cross-border railway development, long viewed as critical but previously delayed by mutual distrust.
