The Ministry of Transport has approved a joint venture between the Deo Ca Group Joint Stock Company from Vietnam and the Petroleum Trading Lao Public Company from Laos building the Vung Ang - Tan Ap - Mu Gia railway project under the public-private partnership (PPP) method.

The joint venture had earlier submitted a proposal to the ministry seeking approval of a feasibility study for the railway link between Laos and Vietnam.

The Vung Ang - Tan Ap - Mu Gia section stretches 201 km through north-central Vietnam to just over the Lao border and has total investment capital of an estimated VND27.48 trillion (over $1.12 billion).

It forms part of the Vung Ang - Vientiane railway project under the national railway system planning for the 2021-2030 period with a vision to 2050, approved by the Prime Minister for investment and construction before 2030.

The Vung Ang - Vientiane link is 554 km long, with investment of VND149.5 trillion ($6.1 billion) and eight train stations.

In Ha Tinh province, Vung Ang possesses a large seaport that can provide services for Laos’ trade activities.