Vietnam’s railway drive raises risk of mismanagement, debt traps, analysts say

A railway worker guides a train in Hanoi, Vietnam, on Feb. 13, 2025. Vietnam's National Assembly on Feb. 19 approved the use of Chinese loans to build an $8 billion rail link from its largest northern port city to the border with China.

Analysts are pointing to management and funding issues for Vietnam’s planned north-south, high-speed rail initiative and express concerns over potential “debt traps” and growing Chinese influence as Beijing funds a railway connecting the two countries.