HCMC – Local infrastructure developer Deo Ca Group JSC has signed a joint venture agreement with Laos’ Petroleum Trading Lao (Petro Trade) Public Company to develop a Vietnam-Laos railway project.

The railway line spans 554.7 kilometers, linking Vung Ang Port in the coastal province of Ha Tinh to Vientiane, the capital and largest city of Laos.

The project will be built under the public-private partnership, with a total investment of VND149,550 billion.

As part of the deal, Deo Ca Group and Petro Trade will construct a 103-kilometer section of the railway between Vung Ang Port and Mu Gia Pass in Quang Binh Province costing VND27,485 billion.

The section will have one terminal and seven stations. It is designed for a top speed of 150 kilometers per hour.

Once put into operation, the project is expected to enhance freight forwarding services between Vietnam and regional countries, notably from Vung Ang Port to the economic centers in the north of Laos and the southern part of China.