Illustrative photo (Photo: VNA) Hanoi (VNA) – A joint venture between Vietnamese infrastructure developer Deo Ca Group JSC and Petroleum Trading Lao Public Company (PetroTrade) has been allowed to develop a railway project linking the two countries.
General Director of the Deo Ca Group JSC Nguyen Quang Vinh has announced that the Ministry of Transport accepted the joint venture’s proposal on developing Vung Ang – Tan Ap – Mu Gia railway project under the form of Public-Private Partnership (PPP).
The joint venture as the project investor is required to conduct a pre-feasibility study and submit an assessment report as regulated in the Law on Investment, Law on Railway, relevant laws and planning schemes.
The Vung Ang - Tan Ap - Mu Gia railway project is part of the Vientiane - Vung Ang railway, which was included in the national railway network development planning in the 2021 – 2030 period, with a vision until 2050. It has a length of 103km and is estimated to cost nearly 27.5 trillion VND (1.12 billion USD).
It is an important project, part of the overall Vietnam - Laos railway project, and one of the priorities of the Governments of Vietnam and Laos.
The Vientiane - Vung Ang railway has a total length of 554.7 km from Vung Ang port in Vietnam’s central coastal province of Ha Tinh to Vientiane, the capital and largest city of Laos.
The project will be built under the public-private partnership, with a total investment of 149.55 trillion VND (6.3 billion USD).
Vung Ang port - the railway’s ending point will play an important role in promoting the the two countries' economic ties through trade exchange and maritime transport, targeting the markets of Northeast Thailand, China, the Republic of Korea and Japan.
According to the representative from the Deo Ca Group JSC, after highways, investing in railway infrastructure has been identified as the new direction of the business in the next 5-10 years./.
