Laos-Vietnam railway set to accelerate massive logistics boost following Concessional Green light

The Concession Agreement for the Design, Construction, Financing, Operation, and Maintenance of the 147- Kilometer Railway Project from Thakhek District, Khammouane Province to Mu Gia, the Laos-Vietnam Border, signed between the Government of the Lao PDR—represented by Mrs. Phonevanh Outhavong, Deputy Minister and Standing Vice Chairperson of the Investment Promotion and Management Committee and the Laos–Vietnam Railway Company Limited, represented by Dr. Chanthone Sitthixay, Chairman and Founder of the company.

The signing ceremony was held on March 31, 2026, at the Landmark Mekong Riverside Hotel, Vientiane Capital and was honorably chaired and witnessed by Mr. Saleumxay Kommasith, Deputy Prime Minister of the Lao PDR and Head of the National Steering Committee for the Laos–Vietnam Railway Project. The event was also attended by the current and former Governmental leaders, diplomatic corps, International Financial Institutions, Export Credit Agencies, top-tier international partner companies and relevant stakeholders from public and private sectors.
As the leading domestic company that engaged in a mega project-scale investment, the Laos–Vietnam Railway Company formed strategic international alliances with` with leading partners across the globe such as Yooshin Engineering Corporation and the Korea National Railway (KNR), the RUBI Group from Switzerland, and A2Z Construction from Vietnam, in order to elevate the project’s implementation to international standards.

The ceremony also marks a significant milestone in fulfilling the Government’s expectations through the forthcoming mobilization of commercial and multilateral financing from leading international financial institutions globally including those from Germany, Switzerland, Singapore, the US and the UK.
The project’s financing prospects are further strengthened by the potential support from Export Credit Agencies (ECAs) such as Euler Hermes from Germany, SERV from Switzerland, UKEF from the United Kingdom, Bpifrance from France, K-Sure from the Republic of Korea and EFA from Australia. Prospective co-financiers also honored the occasion with their presence, including the International Finance Corporation (IFC), ING, Department of the Treasury of the French Ministry of Finance, AfD, Group BPCE and the EDCF (part of the K-EXIM umbrella).

This remarkable milestone signifies a great achievement to realize Laos’ vision of transforming from a landlocked to “land-linked” country through connectivity investments with its neighbors as outlined in the 10th National Socio-Economic Development Plan (2026–2030). In 2021, it was officially mentioned as one of the projects under the Master Plan of the development of Railway Transport in Vietnam for the period 2021 – 2030 with a vision to 2050.
Traversing approximately 100-km within Vietnamese territory from Vung Ang Deep Sea Port, the Laos-Vietnam Railway Project will run a further 450 km to reach Vientiane Capital in Laos with a key terminus being the Vientiane Logistic Park and Thanaleng Dry Port International Border Checkpoint. Once complete, the project will offer a cost competitive & faster route to the sea and access to large Northeast Asian markets such as China, Japan, and Korea.
The LVRP is anticipated to provide a greener, faster, and cost-effective logistics option for trade within the GMS, North and South Asia, Europe, and the US. Upon completion, the project will bring positive impacts on Laos’ economy and localities’ well-being by providing equal access to safe transport and international trade via Vung Ang Deep Sea Port with an estimated wider economic benefit of over 80 billion US$ over the concession period.
On this occasion, Mr. Leklai Sivilay, Minister of Public Works and Transport extended his appreciation towards the Laos-Vietnam Railway Company Limited for its strong dedication to the project implementation. He highlighted the importance of the project and calls upon all levels of the Government authorities to collaboratively support the project to ensure that construction of the Railway goes ahead as planned and achieves the set milestones.
Dr. Chanthone conveyed his profound gratitude to the Government for the continued support and trust, and affirmed the company’s commitment to deliver the project to high technical standards, ensuring its success and the fulfilment of all targets.
The Laos–Vietnam Railway: A path of Friendship, The corridor of development.

By Advertorial Desk
 (Latest UpdateApril 3, 2026)