HANOI (Feb 13): Vietnam plans to take loans from the Chinese government to partly fund a US$8.3 billion (RM36.9 billion) project to build a new railway linking the two countries, the transport minister said on Thursday.

Vietnam has been seeking to upgrade its ageing railway systems, and has approached China for funding and technology.

"Vietnam's current railway system is outdated, and the country needs a new system to support its economic development," transport minister Nguyen Hong Minh told parliament.

The 391km (243-mile) railway will run from the border city of Lao Cai through capital city Hanoi to Haiphong that houses the largest seaport in northern Vietnam, Minh said.

The railway will have a gauge of 1,435 millimetres and will allow trains to operate at a speed of up to 160kph (99mph). It is designed to transport passengers and cargo.

Construction of the railway is expected to start this year and be completed by 2030, he said.

Parliament is scheduled to vote on the railway project next week during its ongoing meeting in Hanoi.

In November, lawmakers also approved a resolution supporting a US$67 billion, 1,541km (958-mile) high-speed rail that would link Hanoi with business hub Ho Chi Minh City, targeting the start of operations in 2035.

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