Vietnam's to export 80% of timber exports to China with $67 billion bullet train

Posted on December 11, 2024   |  

Vietnam’s parliament has approved a $67 billion high-speed railway project to reduce the train journey from Hanoi to Ho Chi Minh City from 35 hours to 5.5 hours.

Construction will begin in 2027 after 18 years of planning, requiring the removal of 120,000 residents and parts of protected forests and rice fields.

The project will help Vietnam catch up to neighboring Laos in terms of rail infrastructure.

Local businesses are currently exporting over $14 billion in wood and wood products annually, with $1.49 billion going to China.

Vietnam exports raw wood and over 20 wood products to China, with wood chips making up a significant portion (80%) of the total.

The 1,500-km railway will pass through 23 stations across 20 provinces and cities in Vietnam.

The payback period for public investment in the project is estimated at 33.6 years, with Vietnam financing no more than 30% of the budget domestically or through foreign aid.