Chinese firms eye investment in Vietnam rail projects

By Hoai Thu   June 27, 2024 | 01:44 am PT
Chinese firms eye investment in Vietnam rail projects
People look at a train in Hanoi. Photo by VnExpress/Giang Huy
Leading Chinese companies are looking to invest in Vietnam’s rail and road infrastructure as the two governments’ encouraging policies pave the way for stronger partnership.

China Railway Rolling Stock Corporation wans to partner with Vietnamese companies to build a high-speed railway connecting the northern and southern regions along with other connecting rails, the company chairman Sun Rongkun said at a conference on Vietnam–China infrastructure development partnership in Beijing Thursday.

The two countries can begin to form a manufacturing chain of rail equipment in the country to help strengthen Vietnam’s rail industry, he said. "We are ready for partnership in rail and energy. We want to provide consultancy to Vietnam to build a modern rail system."

Wei Xin Ju, deputy CEO in charge of communications at Huawei, said that his company wants to participate in the digitization of Vietnam’s transportation system.

Huawei has provided wireless communications system and other digital devices to many Asian rail projects.

Vietnam’s Minister of Transport Nguyen Van Thang said that Vietnam has large demand for capital to fund transportation development from now until 2045.

The country needs VND600 trillion ($23.5 billion) to develop 9,000 kilometers of expressway and VND4.8 quadrillion to develop a cross-country rail network and urban rails in Hanoi and Ho Chi Minh City.

It needs VND100 trillion for port development and VND20 trillion for aviation upgrades.

"These large sums can pose challenges for the Vietnamese government but they are opportunities for Chinese and Vietnamese companies to partner".

Prime Minister Pham Minh Chinh said that Vietnam wants to build three rail projects connecting its northern localities with China.

They will also help connect Vietnam with Central Asia and Europe and link China with other ASEAN countries, he added.

Chinh encouraged Chinese companies to invest in these projects through public-private partnerships.

He suggested that China provide incentive loans to Vietnam and help with technology transfer and human resources training.

Chinese Vice Premier Zhang Guoqing said that China considers infrastructure development a priority and affirmed that the country is promoting global transportation cooperation and considers Vietnam as an important partner.

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