Construction of double circuit 500kV Lao Cai-Vinh Yen power transmission line kicked off on March 16 in northern Vinh Phuc province.

Prime Minister Pham Minh Chinh attended the groundbreaking ceremony.

The project spans 229.5 km across four provinces of Lao Cai, Yen Bai, Phu Tho, and Vinh Phuc, consisting of 468 foundation positions for electricity poles, and connecting the 500kV Lao Cai substation to the 500kV Vinh Yen substation.

Total investment capital is estimated at over VND7.4 trillion ($287 million).

Addressing the groundbreaking ceremony, Prime Minister Pham Minh Chinh instructed the investor and relevant agencies to strive to complete the project within six months.

Once completed, the transmission line will help ensure stable operation of the national power system, increase power supply for northern Vietnam and power import capacity.

The Government estimated that one percent GDP growth would require 1.5 percent growth in power generation. With the Government's GDP growth goal of at least 8 percent this year, power generation needs to grow by 12-13 percent.

The above growth scenario prompts the need to raise power generation capacity by an addition of around 2,200- 2,500MW and to further strengthen transmission capacity.