On December 8, 2025, at the Laos Vietnam Investment Promotion Conference, a cross-border railway project with a total investment of approximately 6.6 billion US dollars and a planned total length of 571 kilometers identified a key timeline: the cross-border railway from Vientiane to Yong'an, Vietnam is scheduled to start construction in 2026, with the goal of achieving full line operation by 2030. This railway will provide the landlocked country Laos with a railway channel through the sea for the first time, and will be connected with the China Laos railway, which is expected to reshape the regional logistics pattern.

The "Land Locked Country" Breakthrough Project under PPP Mode

This project is a key infrastructure for Laos to break through geographical bottlenecks and achieve the transformation from a "landlocked country" to a "land linked country". The project is promoted through a cooperation model between the government and social capital, jointly developed by Laos Petroleum Trading Company and Vietnam Dashan Investment Co., Ltd. The total investment in railways is about 6.6 billion US dollars, with an average cost of about 11.55 million US dollars per kilometer. The total length of the line is about 571 kilometers, including about 452 kilometers within Laos, extending from Vientiane to the Laos Vietnam border; The section within Vietnam is about 119 kilometers long, with direct access to the Yong'an Deep Water Port in Ha Tinh Province from the border.

The preliminary work is basically ready, and the port facilities have been put into use

At present, substantial progress has been made in advancing the project. The Laotian side stated that about 90% of the preliminary work, including fundraising, feasibility study, and route survey, has been completed, laying the foundation for the start of construction in 2026. Vietnam is also conducting economic and technological assessments simultaneously. As the terminal and core supporting facility of the railway, Terminal 3 of Yong'an Port was officially put into use on April 28, 2025, and can accommodate large cargo ships, increasing its annual cargo throughput capacity to over 6 million tons. According to the agreement, Laos will be granted priority use rights for multiple terminals at the port, ensuring the reliability of future export channels.

Connecting China Laos Railway and Leveraging Regional Unicom Network

The strategic significance of this railway goes far beyond bilateral cooperation between the two countries. After its completion, it will be seamlessly connected with the China Laos Railway, forming an international logistics channel from Yunnan, China through Laos to the deep-water port in central Vietnam. In the future, this channel is expected to further connect with the railway networks of Thailand and Cambodia to the east, thereby promoting the gradual formation of the entire railway transportation system in the Indochina Peninsula. This will not only significantly reduce the overseas logistics costs of Laos' mineral and agricultural products, but also help strengthen its hub position in China ASEAN economic and trade exchanges.

As the preliminary work is nearing completion and the construction schedule is clear, the Vientiane Yong'an cross-border railway is accelerating from blueprint to reality. It is not only the "dream road" for Laos to achieve its national development strategy, but also an important infrastructure puzzle to promote regional connectivity and deepen the integration of ASEAN and China's economy. Its construction process will have a profound impact on the future economic geography of the Indochina Peninsula. Editor/Yang Beihua