During a recent reception in Hanoi on May 21, Vietnamese Prime Minister Pham Minh Chinh met with Zhou Jiayi, President of PowerChina Asia Pacific, to discuss exciting prospects for collaboration on the Hai Phong – Hanoi – Lao Cai railway line. This key transport corridor aims to connect with China’s bustling cities of Kunming and Chongqing, opening avenues to European markets and beyond.
Vietnam’s strategic focus on transport, energy, and digital transformation infrastructure bolsters this initiative, especially in enhancing rail connectivity with China. PM Chinh enthusiastically welcomed PowerChina’s collaboration with local partners, emphasizing the importance of expanding business ventures in Vietnam’s railway sector. He acknowledged China’s longstanding partnership with Vietnam, highlighting that many joint projects have yielded substantial benefits.
To further invigorate railway infrastructure, Vietnam is keen on inviting reputable Chinese corporations to invest, starting with the Lao Cai – Hanoi – Hai Phong line. The Prime Minister encouraged PowerChina to forge close ties with Vietnam, aiming to develop the railway industry through technology transfer, workforce training, and operational support.
He also spotlighted recent resolutions aimed at propelling science, technology, innovation, and private sector development, which create a conducive investment climate. Beyond infrastructure, PM Chinh urged PowerChina to incorporate Vietnamese companies into its global supply chain and share clean energy technologies with local giants like Viettel and the Vietnam National Industry – Energy Group for wind turbine and solar panel projects. “The more the merrier!” he seemed to imply about the integration of local firms into broader projects.
Looking to the future, the Prime Minister conveyed his hope that PowerChina would use Vietnam as a launchpad to solidify its presence in Southeast Asia and beyond. Reiterating Vietnam’s commitment to aligning interests and sharing risks, he assured that the Vietnamese government stands ready to support and protect the rights of foreign investors, including PowerChina, to guarantee effective and law-abiding projects that yield mutual benefits.
Zhou Jiayi shared PowerChina’s excitement about Vietnam’s rail initiatives, drawing upon the company’s experience in constructing over 2,000 kilometers of railways across China, Laos, and Indonesia. He suggested that government backing could facilitate cooperation with four Vietnamese firms on the Lao Cai-Hanoi-Hai Phong line, promising timely, quality, and cost-efficient construction, alongside the sharing of technical expertise.
As the world’s seventh-largest energy contractor, PowerChina operates in more than 130 countries, with 2024 revenue projected to surpass $100 billion, making its mark among the top 500 companies globally. With a dynamic portfolio spanning hydropower, irrigation, urban infrastructure, and digitalization, PowerChina has been actively contributing to Vietnam’s energy and infrastructure landscape since the early 2000s, participating in over 100 projects, including seaports.
In 2024, PowerChina signed a memorandum of understanding with four Vietnamese firms—FECON JSC, Lung Lo Construction Corporation, Song Da Corporation JSC, and Thang Long Joint Stock Corporation—to create the CVRail Consortium, all geared toward nationally significant railway ventures. The consortium’s projected revenue for 2024 stands around VND22 trillion, or approximately $880 million. Imagine what they could achieve if everyone brought their A-game!
What railway project is Vietnam focusing on with PowerChina?
Vietnam is concentrating on the Hai Phong – Hanoi – Lao Cai railway line, designed to connect with China’s Kunming and Chongqing.
What benefits does Vietnam expect from PowerChina’s involvement?
Vietnam anticipates enhanced railway infrastructure, technology transfer, workforce training, and operational support, fostering economic growth and connectivity.
What is the CVRail Consortium?
The CVRail Consortium is a partnership formed by PowerChina and four Vietnamese firms, aimed at advancing significant railway projects in Vietnam, with projected revenues of approximately $880 million for 2024.
