The Government of Laos and the Government of Vietnam have confirmed that construction of the first cross-border railway linking the two countries will begin in 2026, with commercial operations targeted for 2030. The project is being developed as a public–private partnership between Petroleum Trading Lao Public Company (PTL) and Vietnam’s Deo Ca Group JSC, with a total estimated investment of USD6.6 billion.
The railway will span 452 km within Laos and 119 km in Vietnam, connecting Vientiane with Vietnam’s Vung Ang Port in Ha Tinh province. The line will provide Laos with direct maritime access for the first time and is intended to support bulk cargo, container traffic and regional freight logistics. Preparatory works in Laos, including feasibility studies, detailed surveys, environmental assessments and financing arrangements, have reached about 90 per cent completion. Construction on the Vietnamese section is expected to begin in 2027 following final economic evaluations and design approval.
The project is positioned as a strategic logistics corridor under bilateral economic cooperation frameworks between Laos and Vietnam. In addition to rail connectivity, the agreement grants Laos priority access to Wharves 1, 2 and 3 at Vung Ang Port, which currently has a handling capacity exceeding six million tonnes per year following the commissioning of Wharf 3 in April 2025. Once operational, the railway is expected to lower transport costs, improve export competitiveness and strengthen regional supply chains across mainland Southeast Asia.