The Lao Cai - Hanoi - Hai Phong railway project added the Yen Vien - Gia Lam section and invested in the Hanoi - Hai Phong double track... increasing the total investment by more than 86,000 billion VND.
The Government has just proposed to the National Assembly to adjust the total investment of the Lao Cai - Hanoi - Hai Phong railway from 203,200 to 289,300 billion VND, an increase of 86,100 billion VND compared to the preliminary total investment approved by the National Assembly in 2025.
According to the Railway Project Management Board (Ministry of Construction), one of the reasons for increasing the total project investment is the addition of the 8.4 km long Yen Vien - Gia Lam section and moving the northern passenger terminal from Yen Vien to Gia Lam.
According to the orientation of the Hanoi Capital Master Plan with a 100-year vision, Gia Lam is the northern passenger terminal, while Yen Thuong is the freight terminal. The new construction of the Yen Vien - Gia Lam railway section aims to connect with the national railway and urban railway lines of Hanoi, and at the same time create conditions for the development of Gia Lam station area according to the TOD model.
This content alone increases the project by about 21,605 billion VND, including 7,759 billion VND in construction costs and 13,846 billion VND in site clearance.
Invest in double road Hanoi - Hai Phong instead of single road
In addition to the above objective reasons, the Hanoi - Hai Phong section was changed from a divergent investment plan to a double-track investment right from the beginning, causing capital to increase by 22,814 billion VND compared to the investment policy.
According to a representative of the Railway Project Management Board, according to transport demand forecasts, about 10 years after the line is put into operation, transport capacity may require investment in a second line. According to the old plan, the project will build one road first, then invest in the second road by 2045. However, this approach incurs many costs and risks because the second line must be constructed while the first line is in operation.
Investing in double roads from the beginning helps reduce land use needs by about 115 hectares, equivalent to reducing site clearance costs by VND 4,800 billion, while saving VND 12,587 billion compared to the total cost of completing double roads according to the phased plan. In addition, this option does not require investing in 2 additional technical stations, a 1,000 mm gauge railway in the Hanoi area and replacing two single bridges with one double bridge.
The synchronous investment also helps increase train speed from about 95 to 120 km/h, reduces travel time by about 14 minutes and is calculated to bring economic benefits of about 50 billion VND per year.
Another factor is that geological surveys show that this area has weak soil. If the second road is constructed after the first road has been in operation, the risk of subsidence affecting the currently exploited route will be higher. In addition, some projects may overlap with the expressway connecting Hanoi - Gia Binh airport and the newly decided investment policy of the Hanoi - Quang Ninh railway.
Land clearance increased sharply even though land area decreased
According to the adjusted plan, the total area of land occupied by the project is reduced by about 556 hectares, from 2,632 hectares to 2,075 hectares, but site clearance costs increase by about 34,849 billion VND. Compared to the previous pre-feasibility report, localities have accurately determined the scope of land recovery, detailed counting and updated compensation, support and resettlement policies according to land regulations and the latest unit prices in 2026.
This increase includes VND 13,846 billion in site clearance costs due to the addition of the Yen Vien - Gia Lam railway section.
Thus, a decrease in land area does not mean a decrease in site clearance costs, because the land unit price and compensation policy have a major impact on the total cost.
Equipment and design solutions increased more than 20,000 billion VND
The project was later adjusted to increase by VND 15,326 billion due to additional vehicles and equipment, updating the number of vehicles according to transport needs and adjusting prices and exchange rates for imported equipment. Of these, the exchange rate difference increased by about 1,825 billion VND, while the investment rate difference was 2,303 billion VND.
In addition, adjusting some construction design solutions increased about VND 5,360 billion. The adjustments are aimed at increasing durability, stability and safety of exploitation, ensuring flood drainage, adapting to climate change, limiting residential area fragmentation and being consistent with the new planning of localities after the merger.
Accordingly, some deeply dug roadbed sections are expected to be replaced by tunnels; The causeway or route passing through the urban area is replaced by a bridge. The total cost of this adjustment item is about VND 5,360 billion.
According to the Railway Project Management Board, although the total investment increased sharply, the increase due to subjective reasons is still lower than the provision of about VND 30,773 billion calculated in the approved investment policy.
The Lao Cai - Hanoi - Hai Phong railway project, approved by the National Assembly in 2025, is about 417 km long, of which the main line is 389 km long and the branch line is 27.9 km long. According to the new plan, the length of the main route is reduced to 362 km, and the branch route increases to 62 km.
The project's starting point is at the border rail connection (Lao Cai province), the ending point is at Lach Huyen station (Hai Phong). The route is designed with a standard gauge of 1,435 mm, applying rail technology and electrification. The design speed is 160 km/h for passenger trains and 120 km/h for freight trains. The project starts in 2025 and strives to be completed in 2030.
