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The Vietnamese government announced in April 2024 that it aims to start construction of two high-speed railway (HSR) lines in cooperation with China by 2030.

Traversing some of Vietnam’s key manufacturing hubs and FDI destinations, these lines should eventually become part of an expanded cross-country railway network, [and] will be important assets for Vietnam’s economy […]

The new HSR lines will link up with the recently built lines extending China’s railway network to the Vietnamese border, facilitating imports of Chinese industrial goods and materials […]

But there are caveats to Vietnam’s HSR project. High-speed railway projects often fall behind their original deadlines and run over projected costs, raising questions about their cost–benefit ratio and financial sustainability. If the project faces delays, cost overruns or burdensome debt, it may not achieve its goals and will likely adversely affect the credibility of the Vietnamese government. Establishing terms that minimise these risks could prove crucial for defining the project’s long-term impact.

Hanoi’s relationship with China is burdened by territorial disputes in the South China Sea and Vietnam’s increasing closeness with the United States and Japan in defence and strategic relations. Making Beijing a stakeholder in a capital developmental project which aims to bring economic and strategic gains to both sides will help counterbalance security and strategic tensions and manage related risks.