A long-range train arrives at Shijiazhuang, capital city of  North China's Hebei Province, on December 5, 2023, carrying 35 containers of goods and 800 tons of timber and other products from Hanoi, Vietnam. Photo:VCG

On December 2, a high-speed railway connecting Dongxing city in South China's Guangxi Zhuang Autonomous Region, bordering Vietnam, entered trial operation.

Expected to begin operating at the end of 2023, the Fangdong Railway links the two Guangxi cities of Fangchenggang and Dongxing, sets the basis for an increasing connectivity and trade between China and Vietnam.

And that connection is expected to become closer, after the two neighboring socialist nations recently upgraded their relationship to a new and high level, and vowed to step up cooperation in a broad range of areas including infrastructure. 

In the 16-page joint statement released on Wednesday, China and Vietnam agreed to take their ties to a new stage of "greater political mutual trust, more substantive security cooperation, deeper practical cooperation, firmer social foundation, closer multilateral coordination, and better management of differences."

Among which, the two countries agreed to ramp up their strategic connection, implementing the cooperation plan connecting Vietnam's "Two Corridors One Circle" framework with the Belt and Road Initiative (BRI).

Focus on cooperation

"Strengthened cooperation on rail connectivity is in the pursuit and interest of China and Vietnam, and their joint statement indicates the two sides have reached a consensus on one key issue - focusing on collaboration and avoiding third-party interference," Xu Liping, director of the Center for Southeast Asian Studies at the Chinese Academy of Social Sciences, told the Global Times on Thursday.

The joint statement mentioned several rail projects and initiatives, including accelerating the construction of standard-gauge railway Lao Cai - Hanoi - Hai Phong, and step up research on Dong Dang standard-gauge railway line, connecting Hanoi, Mong Cai, Ha Long and Hai Phong.

The two nations also agreed to accelerate construction of other border infrastructure projects, including the construction of a road bridge across the Red River in the Bat Xat (Vietnam) - Ba Sai (China) border area.

In November 2022, China and Vietnam announced joint efforts to speed up the Lao Cai-Hanoi-Hai Phong railway project, calling for timely conclusion of the review of the Lao Cai-Hanoi-Hai Phong standard-gauge railway, while start discussions on revising the bilateral railway agreement reached in 1992.

The move was seen by Chinese experts as an end to Vietnam's decades-long hesitation over whether it would be preferable to connect with China by using a standard-gauge railway system, which is different from the country's meter-gauge railway.

"Almost a year later, the new joint statement may indicate that some initial works such as exploration have been completed, and the budget funds are probably in place," Xu said.

Observers said the development comes as China's expertise in infrastructure projects was recognized in Vietnam with the successful launching of China-Laos Railway, as well as Vietnam's first urban light rail, which was built by the Sixth Engineering Bureau under CREC, has been in smooth operation for roughly two years.

As a landmark project integrating the BRI and the "Two Corridors and One Circle" plan, the rail line, starting from Cat Linh to Ha Dong in Hanoi -- capital of Vietnam, has backed up public transport for local residents, significantly contributing to Hanoi's development.

Since its inauguration and commercial operation in January 2022, the project has transported nearly 20 million passengers, a spokesperson from the Sixth Engineering Bureau CREC, told the Global Times on Wednesday.

The impact of the light rail project extends beyond reshaping the local transportation landscape, the spokesperson said, noting that the project has initiated the China-Vietnam "Worker School," helping employ over 300 local workers, including Vietnamese translators and engineers, in addition to training more than 6,000 technical personnel. 

Looking forward, the Vietnamese Ministry of Transport welcomes the Chinese company's participation in the construction of the North-South High-Speed Railway project in Vietnam.

Booming trade growth

As cargo trade between China and Vietnam has seen a rapid growth in recent years, the decision by the two neighbors to speed up construction of rail connections is set to significantly lift cross-border trade of goods, experts said.

China-Vietnam bilateral trade last month hit a monthly record of 161.92 billion yuan ($22.58 billion), up 12.5 percent year-on-year, Chinese customs data showed. 

According to China's General Administration of Customs, bilateral trade reached 1.45 trillion yuan in the first 11 months 2023, up 3.6 percent year-on-year. China-Vietnam trade accounts for 25 percent of China's trade with ASEAN.

Moreover, observers noted the efforts in bolstering connectivity between China and Vietnam will push the further development of a Trans-Asian Railway (TAR), with the China-Laos Railway, the first leg of the international rail network, demonstrating the potential of closer Asian rail connectivity.

The growing connectivity will also work in synergy with the Regional Comprehensive Economic Partnership (RCEP), the world's largest free trade pact. Now, Vietnamese fruit companies are leveraging the RCEP pact to export more locally-produced fruits to China. 

"With sound rail connectivity, we believe there will be significant improvements in the efficiency of agricultural produce trade," Deng Haoji, chief operating officer of Chongqing Hongjiu Fruit, told the Global Times on Wednesday. 

As a major durian importer, the Chinese company has several durian packaging factories in Vietnam. During the durian production season, the factory can ship 50-60 containers of Vietnamese durians each day to China.

Deng noted that a shift to fast rail freight could, on the one hand, speed up the transportation of goods, especially perishable items like agricultural products, reducing losses and increasing trade. On the other hand, the new railway transport will help lower the costs of land and sea shipping during peak seasons.

There exists an enormous growth potential for closer integration of the agricultural and industrial supply chains between China and Vietnam. China possesses expertise in agricultural technology, infrastructure construction, and market management, while Vietnam has demonstrated competitiveness in tropical agricultural produce and exports. Deepened collaboration between the two countries can address each other's shortcomings, enhancing the quality and efficiency of trade, Deng said.