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China offers loans, technology for Vietnam railways

China offers loans, technology for Vietnam railways

China-Vietnam railway ties were in focus on Friday as President To Lam concluded his visit. Beijing offered loans, technology and training for Vietnam’s rail infrastructure development. The visit also included high-speed train journeys across China’s north and southwest. This is reported by the railway transport news portal Railway Supply.

China offers loans, technology for Vietnam railways
China offers loans, technology for Vietnam railways

China-Vietnam railway ties and rail cooperation

Lam was on his first overseas trip since being elected Vietnam’s president last week. During the visit, Xi Jinping told Lam to remain clear on strategy. He also said the two neighbouring countries should prioritise political security. Beijing also said it would guide enterprises into railway construction projects in Vietnam. That placed project work alongside loans, technology and training. The foreign ministry statement described that effort as a “new bright ⁠spot” in ⁠strategic ties.

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Meanwhile, the wording echoed Xi and Lam’s Wednesday calls for stronger transport and logistics links. “Infrastructure, and rail in particular, is emerging as one of China’s clearest priorities in Vietnam,” said Nguyen Khac Giang, a visiting fellow at Singapore’s ISEAS Yusof Ishak Institute.

High-speed rail in China and the 32 pacts

For example, Chinese state media published photographs of Lam on a 10-hour high-speed rail trip. The journey ran from Beijing to Nanning in Guangxi. Nanning is near the Vietnamese border. Lam returned to Hanoi a day later. Earlier, on Tuesday, he also travelled by high-speed train to Xiongan. Xiongan is the city project in Hebei province.

Also, Vietnam is a partner in China’s Belt and Road Initiative. It covers transport links between Asia and Europe. Many projects are funded through loans and investments from Chinese state-owned institutions. Xinhua said the 32 agreements signed this week included a railway feasibility study. They also included measures to strengthen related talent capacity. “The real test of the ‌pacts will be in implementation, where political will has been clearly demonstrated,” Giang added.

Wider cooperation beyond rail

At the same time, relations between the two countries are warming. Vietnam is moving toward a governance model that increasingly mirrors China’s. Lam’s recent consolidation ⁠of power also resembles that of its leadership.

In addition, the joint statement said their law enforcement and security agencies would deepen cooperation. The focus was terrorism and transnational crime. They would also exchange information and details on efforts to counter interference and separatism. Still, both sides said they would expand ties in aviation. They also cited 5G, big data, new energy and critical minerals.

Separately, Vietnam’s budget airline Vietjet signed a finance lease agreement this week. It was with China’s SPDB Financial Leasing. The deal covers 10 C909 narrow-body aircraft made by Shanghai-based COMAC.

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