The cooperation agreement of the Vietnam-Laos railway construction project was recently signed by Mr. Ho Minh Hoang, President of Deo Ca Group, and Mr. Chanthone Sitthixay, President of Petroleum Trading Lao (PTL) Holding Group (Laos) in Vientiane, Laos, on February 28, 2023.

“Our government’s purpose is to have long-term connection and cooperation with Vietnam enterprises,” stated PTL Holding President. Building sea-based transportation infrastructure is PTL's top priority as they work to expand their logistics and other service offerings.

With a maximum speed of 150 km/h and a gauge of 1,435 mm, the Vientiane – Vung Ang railway is set to be constructed across the territory of Vietnam and Laos and span 554.7 km. Using a Public-Private Partnership (PPP) approach, the project is expected to cost around 149,550 billion VND.

Once completed, this massive railroad will link up with the Laos–China railroad, opening up vast new trade possibilities between northern and southern China. Products that make it to the Vung Ang port will have a wide range of Asian destinations to choose from, including China, North East Thailand, Japan, and Korea.

An important link to the Laos–China railway network is expected to be established by the major railway line. There will be a plethora of new trade opportunities with southern and northern China thanks to this strategic linkage. Furthermore, a wide variety of Asian markets, such as China, Japan, the northeastern region of Thailand, and South Korea, are anticipated to receive commodities traded at the Vung Ang port.
Along its 103 kilometers of track in Vietnam, the railway from Mu Gia to Vung Ang stops at one main station and seven intermediate ones. With the (PPP) model in mind, the estimated total cost of this project is about 27,485 trillion Vietnamese dong.

The Chairman of Deo Ca Group has announced the following next steps after the partnership is formalized: "Subsequent to the joint venture signing ceremony, a joint statement detailing the nature of this collaboration will be promptly disseminated," in an attempt to speed up the flow from agreement to implementation. In addition, the Chairman went over the stages of procedure, saying that PTL Holding would be delivering a complete report to the Laotian government and that Deo Ca Group will do the same for the Vietnamese government.

The Mu Gia - Vung Ang railway project is important for both the Vietnamese and Laotian governments, according to Vietnamese Ambassador to Laos Mr. Nguyen Ba Hung, who has also emphasized the project's crucial importance. The high-level agreements reached between the states and the two groups reflect this priority, with a concentration on improving infrastructure and fostering economic growth. Although Ambassador Hung was aware of the difficulties present in the project, he was optimistic about the cooperation between Petroleum Trading and Deo Ca Group. "The Mu Gia - Vung Ang railway is an exceptionally important project, and it stands as a priority within the economic and infrastructure development plans endorsed by the governments of Vietnam and Laos," Ambassador Hung added. "Despite the complexities involved, I am optimistic that the synergy between Deo Ca Group and Petroleum Trading will lead to the successful realization of the project, justifying the confidence bestowed by the two nations' governments."