HCMC – Vietnam’s FLC Group and Laos’ Petroleum Trading Lao Public Company (PetroTrade) yesterday, March 21, signed a memorandum of understanding on developing the Vientiane-Vung Ang railway project.
The signing took place in the Lao capital of Vientiane, with the ministers of Planning and Investment of the two countries witnessing.
FLC and PetroTrade will jointly prepare to construct a railway section from the Vung Ang seaport in the north-central province of Ha Tinh to the Cha Lo border gate in Quang Binh. This is an important section of the Vientiane-Vung Ang rail line, whose total investment is some US$5 million.
The project has a total length of around 555 kilometers, with a 452-kilometer section in Laos and the rest in Vietnam.
The two sides expected to break ground on the project in the fourth quarter of this year.
The railway project linking Laos and Vietnam is expected to enhance the goods transit capacity at the Vung Ang port, thereby bolstering trade between Vietnam and neighboring countries as well as strengthening regional and international connectivity.
When put into service, the railway will create opportunities for Vietnamese and Lao companies to cooperate in various fields such as tourism and services.
Speaking at the event, FLC also proposed the Lao Government and the relevant agencies create optimal conditions for it to invest in resort-golf, aviation and mining projects.