Vietnamese govt agrees to development of Laos-Vietnam railway
Vietnam’s Ministry of Transport has given the green light to a joint venture between Vietnamese infrastructure developer Deo Ca Group JSC and Petroleum Trading Lao Public Company (PetroTrade) to build a railway linking the two countries, Vietnamese media reported.
The ministry accepted the joint venture’s proposal to build the Vung Ang-Tan Ap-Mụ Giạ railway in the form of a Public-Private Partnership (PPP), the Vietnam News reported, citing the General Director of Deo Ca Group JSC, Nguyen Quang Vinh.
The developers must conduct a pre-feasibility study and submit an assessment report as required by the Law on Investment, Law on Railway, other laws and planning schemes.
With a length of 103km, the Vung Ang-Tan Ap-Mụ Giạ railway is estimated to cost nearly VNĐ27.5 trillion (US$1.12 billion). It is part of the 554.7km Vientiane-Vung Ang railway linking the Lao capital with the Vung Ang seaport in Vietnam’s central Ha Tinh province. The Vientiane-Vung Ang railway will be built as a public-private partnership, with a total investment of VNĐ149.55 trillion (US$6.3 billion), according to the Vietnam News.
Last month, Petroleum Trading Lao Public Company signed an agreement with Yooshin Engineering Corporation and Korea National Railway to prepare a detailed design of the Vientiane-Vung Ang rail line linking Thakhaek district in Khammuan province to the Lao side of the Lao-Vietnamese border.
President of the Petroleum Trading Lao Public Company, Chanthone Sitthixay, said his company has completed key milestones such as the completion and approval of the economic and technical feasibility study and the environmental impact study.
Construction of the railway is expected to start at the end of next year, with the whole of the Vientiane-Vung Ang railway projected to be completed in eight years’ time.
The Vientiane-Vung Ang railway is part of the Lao Logistics Link (LLL) project being developed and operated as a public-private partnership between Laos and Vietnam. The LLL project, including the Vung Ang seaport, is considered a priority cooperation project between the two countries and will significantly bolster the Lao government’s efforts to transform landlocked Laos into a land-linked country.
To boost Laos’ land link efforts and provide access to the sea for the purposes of trade, the Vietnamese government agreed to increase Laos’ share in the Vung Ang port from 20 to 60 % at Laos’ request, making it the major shareholder.
In this regard, Prime Minister Sonexay Siphandone and his Vietnamese counterpart Pham Minh Chinh agreed on October 20, when attending the Association of Southeast Asian Nations (Asean)-Gulf Cooperation Council (GCC) Summit in Saudi Arabia, to push forward and remove obstacles for key cooperation projects such as Vung Ang ports Nos. 1, 2 and 3, as well as increased east-west road and rail connectivity.
