China pledges financing for Vietnam's rail links

20/04/2026 04:00 AST

Beijing pledged financing and support for Vietnamese railway projects, both countries said on Friday, as Hanoi's top leader To Lam wrapped up a four-day state visit to China. The two governments have agreed to "accelerate infrastructure connectivity in railways, roads, and border gate facilities", said a joint statement from the countries' foreign ministries. "China stands ready to cooperate with Vietnam in railway financing, technology, training, and industrial capacity, and will encourage capable enterprises to participate in railway construction," the statement issued by Hanoi said.

Lam is on his first foreign trip since becoming president last week, assuming a dual role as head of state and of the ruling Communist Party, similar to the one occupied by Chinese counterpart Xi Jinping. The two leaders met Wednesday in Beijing's Great Hall of the People and signed several cooperation agreements, state media reported. Despite rival territorial claims in the South China Sea, Beijing and Hanoi have sought to deepen already close economic ties to guard against global trade upheaval caused by US President Donald Trump's tariffs.

China is Vietnam's largest overall trading partner, with imports of Chinese goods surging more than 20 percent last year to $198 billion. Hanoi is planning a pair of railway lines to China as part of the Two Corridors, One Belt initiative, which connects to Beijing's Belt and Road global infrastructure program. Friday's statement said railway cooperation between the two communist-ruled nations would become a "new highlight" of their strategic partnership.

Vietnam's transport infrastructure has struggled to keep pace with a surge in foreign investment, both from China and from other countries seeking to avoid US tariffs targeting Beijing. Upgrading road and rail networks has taken on new urgency under Lam, who as party leader since 2024 has instituted aggressive growth-oriented reforms and channeled vast resources into mega-infrastructure projects. Vietnam has long pursued a "bamboo diplomacy" approach, striving to stay on good terms with both China and the United States - the largest buyer of its goods.

AFP