Chinese firm seeks to join US$8.4-billion railway project in Vietnam
Vietnam has encouraged reputable Chinese companies to invest in its major railways.
THE HANOI TIMES — The China Power Construction Corporation (PowerChina) has expressed interest in partnering with four Vietnamese companies to implement the Lao Cai-Hanoi-Haiphong railway project that connects the area bordering China to Haiphong, the bustling port city in northern Vietnam.
The company pledged to ensure progress, quality, and effective cost control when Zhou Jiayi, PowerChina’s Asia-Pacific President, met Prime Minister Pham Minh Chinh in Hanoi on May 21.
He reaffirmed the group’s commitment to sharing technical and management expertise with Vietnamese partners in the project that costs an estimated investment of US$8.4 billion.
Prime Minister Pham Minh Chinh (right) and Zhou Jiayi, President of PowerChina Asia Pacific, at the meeting on May 21. Photo: VGP
Zhou Jiayi showed the firm's intention to expand cooperation in renewable energy and infrastructure development in Vietnam.
In mid-April, Vietnam and China signed an exchange letter regarding technical support for feasibility study of the project that got the National Assembly's approval for investment policy.
The 391-kilometer line is designed to stretch from the border rail junction in the northern mountain province of Lao Cai to Lach Huyen Port in Haiphong, passing through nine provinces and cities, including Lao Cai, Yen Bai, Phu Tho, Vinh Phuc, Hanoi, Bac Ninh, Hung Yen, Hai Duong, and Haiphong.
Prime Minister Pham Minh Chinh pushed for the project to begin construction simultaneously on December 19 of this year.
At the meeting, Chinh welcomed PowerChina’s proposal and expressed strong support for the group’s investment in Vietnam’s railway infrastructure.
He noted that China has been a key partner in many sectors and that several ongoing collaborative projects continue to yield positive results. Chinh encouraged reputable Chinese enterprises, such as PowerChina, to invest in developing Vietnam’s railways, focusing initially on the Lao Cai-Hanoi-Haiphong route.
He also called on PowerChina to transfer technology, develop high-quality human resources, and promote the use of modern management systems and operational solutions.
The prime minister added that Vietnam recently issued new resolutions to advance science, technology, innovation, digital transformation, and private sector development with favorable policies and incentives offered to foreign investors.
In addition to railways, Chinh requested that the Chinese group support Vietnamese companies in joining its global supply chain and share technology with firms such as Viettel and Petrovietnam. He expressed interest in cooperating on wind turbine and solar panel production.
He suggested that PowerChina partner with local companies, such as Lung Lo and Song Da, to survey and develop renewable energy projects, especially wind power projects, in northern Vietnam. The Chinese group could leverage its partnerships with Vietnamese enterprises to expand into Southeast Asia and beyond.
PowerChina, which operates in 130 countries across five sectors: hydropower, energy, urban infrastructure, mining, and digitalization, has been active in over 100 energy and infrastructure projects in Vietnam since early 2000s.
