PANO – The Ministry of Transport and the Korea International Cooperation Agency (KOICA) signed a Record of Discussion (RD) to conduct a Feasibility study on a railway link (about 500km) from Vung Ang port, Vietnam to Vientiane, Laos on October 6th.

KOICA plans to support US$3 million in ODA grant for three years from 2015 to conduct the Feasibility Study, establish a master plan and provide capacity building in railway sector for the two countries.

In an effort to contribute to the ASEAN's integration and prosperity, Korean government has supported to conduct a Feasibility study on construction of a railway linking Lao and Vietnam.

At the signing ceremony

On October 6th 2015, the agency responsible for ODA KOICA (President Mr. Kim Young-mok) and Vietnam’s Ministry of Transport signed the Record of Discussion on the Project for Feasibility Study on the construction of a railway linking from Vietiane in LAO PDR to Vung Ang in Vietnam via Thakhet and Mugia.

The signing ceremony was also witnessed by Vietnam’s Vice Minister of Transport Nguyen Ngoc Dong and KOICA Vietnam Country Director Chang Jae-yun. With technology assistance from Korea as a railway-developed country, the project can support Lao – a land-locked and least developed country – in the railway infrastructure toward the ocean.

The project is also expected not only to help improve living quality of the people in Vietnam and Laos, but also revitalize their bilateral trade and industrial economic development.

After establishing 1967, the ASEAN’s member countries, with population of approximately 630 million people and ranking the 7th in the world’s biggest economic blocs, is speeding up its integration.

By promoting the transport network construction including railway, it has shown a substantial logistic integration effort preparing for the establishment of the ASEAN Economic Community (AEC) at the end of 2015.

Given this situation, “Korean government is ready to share actively with Vietnam high technology in railway. After the Feasibility Study, and then a substantial financing approved, it requires the two governments’ strong will, commitment and appropriate support to actualize the construction”, told Country Director of KOICA Vietnam Chang Jae-yun in the signing ceremony.

Viet Anh