The Lao Ministry of Public Works and Transport, in collaboration with The Vietnamese Ministry of Transport, have agreed to implement the next step towards building a highway connecting the two countries’ capitals this year.
Laos and Vietnam will assemble a research team, work with the sponsors and seek more investments. A detailed plan will be established between the two ministries that will allow Laos to be more effective in expediting the transit of goods to and from Vietnam.
A feasibility study is set to be completed by the Korea International Co-operation Agency (KOICA), on a 500 km-long railway that links Vientiane to Vung Ang Industrial Zone in Vietnam.
The Laotian and Vietnamese ministries of transport will partner up with KOICA to conclude the study this year and submit their analysis to the governments involved.
The agreement to build the railway to connect Vientiane and Vung Ang Zone, and the highway that connects the two capitals, was signed on September 14, 2015.
It is part of the strategic agreement around their partnership on transport for 2016-2025, with a projected vision towards 2030.
The projects are expected to increase trade development for both Laos and Vietnam, and is the first step to re-imagining Laos as a regional freight hub.
Vietnam’s long coast and the central position of Laos in ASEAN will be utilized to advance the economies of both countries.
Both countries will benefit from the infrastructure and arrangement; Laos will have access to use Vietnam’s ports, and Vietnam will have access through Laos importing and exporting goods.
Story & Photo: Vietnamnet