VIENTIANE: The government will undertake a feasibility study on the construction of a railway between Vientiane and Pakse city, while also planning to build a rail link between Laos and Vietnam.
The two projects are part of government efforts to strengthen regional connectivity and stimulate economic growth.
The plans were outlined by Minister of Public Works and Transport Leklay Sivilay at the 12th National Congress of the Lao People’s Revolutionary Party on Wednesday (Jan 7).
Leklay said construction of the Laos-Vietnam railway is expected to begin sometime early this year. It will run from Khammuan province to the Vietnamese border.
Railway expansion is a key component of the government’s strategy to resolve the country’s economic and financial challenges, while also supporting overall socio-economic development.
He pointed to the success of the Laos-China railway in improving the efficiency of logistics and its contribution to the growth of trade and tourism.
Over the next five years, the government plans to expand the rail network by linking up the Laos-China railway with the Lao-Thai railway, further integrating Laos into the regional transport network.
Since the Laos-China railway came into service in December 2021, it has carried more than 12 million passengers within Laos and over 16 million tonnes of freight.
The Vientiane-Kunming route has carried more than 62 million passengers, while 72 million tonnes of freight has been transported between the two cities, significantly reducing transport costs and travel time.
Rail services have contributed to economic growth in general and tourism in particular, easing travel for many of the 12.5 million foreign visitors to Laos and generating more than US$2.6 billion in foreign exchange earnings.
Leklay said railway development is not solely about transportation, but is a driver of economic modernisation, service-sector expansion and tourism growth, strengthening Laos’ position on the regional and international stages. - Vientiane Times/ANN
