PowerChina keen on railway, renewable energy projects in Vietnam: exec

China Power Construction Group (PowerChina) is keen to join railway projects in Vietnam, including the Lao Cai-Hanoi-Hai Phong route, says its Asia-Pacific executive.

At a meeting with Prime Minister Pham Minh Chinh on Wednesday, Zhou Jiayi, president of PowerChina Asia-Pacific, said the company wants to cooperate with four Vietnamese partners on railway projects in the country, including the Lao Cai-Hanoi-Hai Phong.

The world's seventh largest construction contractor also wants to further cooperate and invest in renewable energy and other infrastructure sectors.

Zhou Jiayi said the wholly state-owned heavyweight is committed to ensuring project progress, quality, and cost control, and sharing management and technical experience with Vietnamese partners.

The investment policy for the Lao Cai-Hanoi-Hai Phong railway project, with total investment capital of VND203,231 billion ($7.89 billion), was approved by the National Assembly, the country's legislature, in February.

On April 14, Vietnam and China signed an exchange of letters on technical assistance for a feasibility study of this project.

The route starts at a cross-border rail connection point in Lao Cai province and ends at the Lach Huyen station in Hai Phong city. It is nearly 391 km long, passing through nine provinces and cities: Lao Cai, Yen Bai, Phu Tho, Vinh Phuc, Hanoi, Bac Ninh, Hung Yen, Hai Duong and Hai Phong.

In response, Prime Minister Chinh said he wants to see PowerChina's cooperation with Vietnamese partners in the fields of clean energy and strategic infrastructure, especially standard gauge railways and urban railways, including the Hai Phong-Hanoi-Lao Cai route to connect with China's Kunming-Chongqing and to European countries.

He noted that China has cooperated and supported Vietnam in many fields, with many projects being efficient.

"Vietnam encourages reputable and large Chinese corporations to participate in Vietnam's railway development, first of all the Lao Cai-Hanoi-Hai Phong route," the Prime Minister said.

The country recently issued several resolutions with an aim to create breakthrough developments in science-technology, innovation, digital transformation, and the private economy, via many preferential and open mechanisms and policies, he added.

The government leader suggested PowerChina support Vietnamese enterprises to participate in the group's global supply chain and transfer technology to companies like Viettel and Petrovietnam, especially in manufacturing wind turbines and solar panels.

He also suggested PowerChina cooperate with Vietnamese enterprises such as Lung Lo and Song Da to survey and develop energy projects, especially wind power in the northern provinces of Vietnam.

The Prime Minister said that PowerChina could, through Vietnamese enterprises, expand its market to other countries in Southeast Asia and other regions.

PowerChina currently operates in more than 130 countries, in five main areas: water conservancy-hydropower, energy, urban infrastructure, mining, and digitalization. Last year, the group's revenue reached more than $100 billion, ranking 108th among 500 largest companies in the world.

It has been present in Vietnam since the 2000s, participating in the construction of more than 100 energy projects and many infrastructure and seaport projects.

In 2024, PowerChina signed an MoU with Fecon Joint Stock Company, Lung Lo Construction Corporation, Song Da Corporation, and Thang Long Corporation to establish the CVRail consortium to jointly research and participate in key national railway projects.