Laos-Vietnam railway set to accelerate massive logistics boost following Concessional Green light

A Concession Agreement for the Design, Construction, Financing, Operation, and Maintenance of the 147-Kilometre Railway Project from Thakhaek district in Khammouane province to Mu Gia on the Laos-Vietnam Border has been signed between the Lao government - represented by Deputy Minister and Standing Vice Chairperson of the Investment Promotion and Management Committee, Mrs Phonevanh Outhavong, and the Laos–Vietnam Railway Company Limited, represented by Chairman and Founder of the company, Dr Chanthone Sitthixay,
The signing ceremony was held on March 31 in Vientiane, honorably chaired and witnessed by Mr Saleumxay Kommasith, Deputy Prime Minister of Laos and Head of the National Steering Committee for the Laos-Vietnam Railway Project.

The event was also attended by current and former government leaders, members of the diplomatic corps, International Financial Institutions, Export Credit Agencies, top-tier international partner companies, and stakeholders from the public and private sectors.
As the leading domestic company engaged in a mega project-scale investment, the Laos-Vietnam Railway Company formed strategic international alliances with leading partners across the globe such as the Yooshin Engineering Corporation and Korea National Railway (KNR), the RUBI Group from Switzerland, and A2Z Construction from Vietnam, in order to elevate the project’s implementation to international standards.

The ceremony also marks a significant milestone in fulfilling the government’s expectations through the upcoming mobilisation of multilateral financing from leading international financial institutions, from Germany, the United Kingdom, the Emerging Africa & Asia Infrastructure Fund (EAAIF), and UBS in Switzerland, and the US.
The project’s financing prospect was further strengthened by potential supports from Export Credit Agencies (ECAs) such as Euler Hermes in Germany, SERV in Switzerland, UKEF in the United Kingdom, Bpifrance in France, EFA from Australia and K-Sure in the Republic of Korea. Prospective co-financiers also honored the occasion with their presence, including the International Finance Corporation (IFC), ING, Department of Treasury of the French Minister of Finance, AfD, BPCE, and the EDCF (part of the K-Exim umbrella.
This remarkable milestone signifies a great achievement on the path to realising Laos’ vision of transforming from a landlocked to a “land-linked” country through connectivity investments with its neighbours, as outlined in the 10th National Socio-Economic Development Plan for 2026-2030.
In 2021, it was officially cited as one of the projects in the Master Plan for the development of railway transport in Vietnam for the period 2021-2030 with a vision to 2050.

Traversing approximately 100 kilometres within Vietnamese territory from the Vung Ang Deep Sea Port, the Laos-Vietnam Railway Project will run a further 450km to reach Vientiane Capital in Laos with a key terminus being the Vientiane Logistics Park and the Thanaleng Dry Port International Border Checkpoint.
Once complete, the project will offer a cost competitive and faster route to the sea and access to large Northeast Asian markets such as China, Japan and Korea.
The LVRP is anticipated to provide a greener, faster, and cost-effective logistics option for trade within the GMS, North and South Asia, Europe, and the United States.
Upon completion, the project will bring positive impacts to Laos’ economy and localities’ well-being by providing equal access to safe transport and international trade via the Vung Ang Deep Sea Port with an estimated wider economic benefit of at least US$80 billion over the concession period.
Minister of Public Works and Transport, Mr Leklai Sivilay, extended his appreciation to the Laos-Vietnam Railway Company Limited for its strong dedication to project implementation.
He highlighted the importance of the project and called upon all levels of Government authorities to collaboratively support the project to ensure that construction of the railway goes ahead as planned and achieves the set milestones.
Dr Chanthone conveyed his profound gratitude to the Government for its continued support and trust, and affirmed the company’s commitment to deliver the project to high technical standards, ensuring its success and the fulfilment of all targets.
The Laos-Vietnam Railway: A path of Friendship, The corridor of development.

By Advertorial Desk
 (Latest UpdateApril 3, 2026)