Outdated infrastructure, difficult to compete in the region

After 5 years of construction, the Laos-China high-speed railway from the border town of Boten bordering Yunnan (China) to the Lao capital Vientiane came into operation at the end of 2021. According to published data, in 2022 the railway connecting Laos and China transported 8.5 million passengers and 11.2 million tons of cargo, cross-border transportation to more than 10 countries, participating in international transport with great success. Meanwhile, in 2022, Vietnam's railway transported 4.52 million passengers and 5.7 million tons of cargo.

Thailand is also accelerating the construction of a railway connecting Laos and China, which will help transport goods across the border between Thailand and China 24 hours faster than before, at a cost of 25%. It is expected that more than 300,000 tons of agricultural products, rubber and cross-border goods from Thailand will be transported to China by rail each year. The country aims to support the development of railways as the main mode of transport between Thailand, Laos and China.

Countries in the region are also investing heavily in railway infrastructure. For example, in Laos, in addition to the high-speed 1,435 m double-gauge railway, there is also an electrified single-track railway for freight transport. From this, it can be seen that the story of international intermodal train competition is very complicated and will become more difficult in the future.

Mr. Hoang Gia Khanh, Deputy General Director in charge of operations, Vietnam Railway Corporation

Experts say that China's opening of a direct railway line to Laos and Thailand will increase competitive pressure on Vietnam 's agricultural exports. China is still the largest market for Vietnam 's agricultural imports, but if it fails to take advantage of international rail transport and continues to use roads as it does now, the opportunity to compete with Thai and Lao goods will face many difficulties.

The question is where will Vietnam's railway be in the international transport "race" compared to other countries in the region in the coming time?

Hạ tầng lạc hậu, khó cạnh tranh khu vực - Ảnh 2. — The North-South Railway is still operating on 1,000 mm gauge track infrastructure built a hundred years ago.

Mr. Hoang Gia Khanh, Deputy General Director in charge of operations of Vietnam Railway Corporation, said that the most important issue is still the connection problem, but the connection is facing many difficulties due to limitations in railway infrastructure. Vietnam Railway is currently connected to China Railway via 2 routes Dong Dang - Bang Tuong and Lao Cai - Son Yeu/Ha Khau Bac.

However, currently, only the Dong Dang - Bang Tuong route is a direct connection, while the Lao Cai - Son Yeu/Ha Khau Bac route has not yet organized the transportation of goods to Europe due to the difference in railway gauge (1 m and 1,435 m). In other words, only the railway route passing through Dong Dang (Lang Son) uses 1,435 m gauge, which is also the common gauge used in the world and the region.

17 billion USD needed to invest in 2 connecting railway lines

According to the report of the Ministry of Transport , according to the Railway Network Planning approved by the Prime Minister, the two railway lines connecting seaports, Lao Cai - Hanoi - Hai Phong and Bien Hoa - Vung Tau, are expected to be invested before 2030 to transport passengers and goods. Regarding the Bien Hoa - Vung Tau railway line (connecting Cai Mep - Thi Vai port area), the Ministry of Transport is implementing the preparation of a pre-feasibility study report for the project, with a length of about 128 km, double track, 1,435 m gauge, passenger and goods transport, with a total investment of about 6.2 billion USD.

The Lao Cai - Hanoi - Hai Phong railway (connecting Lach Huyen wharf area) has basically completed detailed planning, length of about 380 km, double track, 1,435 m gauge, passenger and cargo transport, total investment of about 10 - 11 billion USD.

In fact, the investment in new modern double-gauge railways, despite planning, is still very sluggish. Located on the East-West economic corridor connecting Kunming (China) with Hai Phong ( Vietnam ), the Lao Cai - Hanoi - Hai Phong railway plays an important role in transporting goods between Yunnan and Sichuan provinces (China) with the northern provinces of Vietnam to Lach Huyen seaport (Hai Phong). China has completed the construction of the standard gauge railway (1,435 m) Kunming - Hekou North and put it into operation at the same time as the existing 1 m gauge railway Kunming - Hekou.

Meanwhile, the Lao Cai - Hanoi - Hai Phong route, although approved in the Railway Development Planning Strategy to 2020 - 2030, has not been implemented after many years. In the latest report, the Ministry of Transport said that due to the large total investment, the Prime Minister has issued a National List of projects calling for foreign investment in the period 2021 - 2025 to mobilize investment resources, including the Bien Hoa - Vung Tau and Lao Cai - Hanoi - Hai Phong railways. "Reducing the market share of road transport connecting to seaports is one of the important solutions contributing to reducing logistics costs, in which the two railway routes connecting seaports, Lao Cai - Hanoi - Hai Phong and Bien Hoa - Vung Tau, need to be invested in soon and strive to start construction before 2030," a representative of the Ministry of Transport affirmed.

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