Laos’ National Assembly has given in-principle approval to the first phase of a 562-kilometre standard-gauge railway connecting Vientiane with Vung Ang deep-water port on the Vietnamese coast, in a move that would give the landlocked nation its first direct access to the sea.
The USD6.6bn project is expected to open in 2030 and forms a central pillar of the government’s 2026–2030 National Socio-Economic Development Plan.
The railway will be built in three phases. Phase 1A covers 147 kilometres from Thakhaek on the Mekong River east to Mu Gia on the Laos–Vietnam border. Phase 1B would extend the line from the border to Vung Ang Port in Vietnam, while Phase 2 would run north from Thakhaek and then west along the Mekong to reach Vientiane, connecting with the existing Laos–China railway.
The project is being developed under a build-operate-transfer model and is seen as a strategic step to help transform Laos from a landlocked country into one better connected to regional and global markets via the East–West Economic Corridor.
The project is being implemented as a public-private partnership between Petroleum Trading Lao Public Company (PTL) and Vietnam’s Deo Ca Group JSC. PTL Director-General and Founder Chanthone Sitthixay said around 90% of pre-construction work, including funding arrangements, route surveys, detailed designs and environmental studies, has been finalised, with construction on the Lao section set to begin in 2026.
Vietnam is finalising economic assessments and initial design work, and intends to start construction on its section in 2027. Both sides aim to complete the line simultaneously to meet the 2030 opening target.
Passenger trains are expected to operate at speeds of up to 150 km/h. Once completed, the route will connect directly with the existing Laos–China railway, creating a continuous corridor from southern China through Laos to the Vietnamese coast.
“As of now, the Lao side has completed 90% of the fundraising, surveying, studies, design, and environmental impact assessment work, and will begin construction in 2026,” Chanthone said.