Vientiane Capital, on March 31, 2026, a historic Concession Agreement (CA) signing ceremony for the Laos-Vietnam Railway Construction Project, Section 1 from Thakhek City, Khammouane Province to Muya (Laos-Vietnam Border), a distance of 147 kilometers, in a BOT model, was held at the Landmark Hotel.
The ceremony was attended by Mr. Saleumxay KOMMASITH, Deputy Prime Minister, Standing Deputy Prime Minister, Chairman of the Investment Promotion and Management Committee (IPMC) and Chairman of the National Steering Committee for the Lao-Vietnam Railway Construction Project; Mrs. Sounthone SAYACHAK, Vice President of the National Assembly, along with ministers, former senior leaders and relevant business sectors.
The signing of the Concession Agreement for the project was held on behalf of the Government of the Lao PDR by Mrs. Phonevanh OUTHAVONG, Deputy Minister, Vice President of the Investment Promotion and Management Committee, Standing Member, and on behalf of the private sector by Dr. Chanthone SITHIXAY, President of the Lao-Vietnam Railway Company Limited (LVRC).
The railway project is a 1,435-meter international standard track (similar to the Lao-China railway) and uses international technology, with a design speed of 150 km/h for passenger transport and 80 km/h for freight transport, and is intended to be used for domestic and regional passenger and freight transport.
The project is important and will benefit the economy of the Lao PDR as:
- Integration Strategy: A priority project under the National Socio-Economic Development Plan 2026-2030 to transform Laos from a landlocked country to a truly “Land-Locked to Land-Linked” hub;
- Bilateral Cooperation: A symbol of the strong cooperation between the governments of Laos and Vietnam in developing the East-West Economic Corridor;
- Transportation and Logistics: This project will help increase the capacity to transport goods and trade internationally through Vung Ang Port in Vietnam to be more convenient and faster, saving time from transportation and creating jobs and experience for Lao workers.
The entire Lao-Vietnam railway project starts from Vientiane Capital to Vung Ang Port, Vietnam, with a total distance of about 562 km, which is divided into 3 sections:
- Section 1A: from Thakhek City to Moua, Laos-Vietnam border, 147 km long;
- Section 1B from Moua, Quang Binh Province to Vung Ang Port, Ha Tinh Province, 103 km long;
- Section 2 from Vientiane Capital to Thakhek City, Khammouane Province, 312.8 km long.
The signing of this agreement is considered an important step that will lead to the start of concrete construction to create maximum benefits for the national economy in the future.
