The project line is a section of the Eastern Economic Corridor of the Greater Mekong Subregion (GMS) Economic Cooperation Program. It opened in the early 1900s and runs for about 285 kilometers (km) northwest from Hanoi to Lao Cai City on the border with Yunnan province in the People’s Republic of China (PRC).
Underdeveloped infrastructure and poor domestic and international connectivity prevented Indonesia from achieving its growth potential. Furthermore, the pace of economic growth and job creation was insufficient to reverse the declining poverty reduction rate and widening rural-urban disparity as well as close the socioeconomic gap between the western and eastern regions.
After rapidly increasing for 3 decades, Thailand’s growth had slowed in the years prior to project appraisal in 2009. Reinvigorating growth by strengthening competitiveness thus became the centerpiece of the government’s economic policy.
With the aim to improve regional connectivity, cut transport costs, and increase competitiveness, the Central Asia Regional Economic Cooperation (CAREC) Program has been developing 6 transport corridors since 1997.