The railway is part of the Laos–China Railway which is in turn part of the broader
Laos–China Economic Corridor.
Planning Laos is the only
landlocked country in
Southeast Asia, which burdens it with a disadvantage in trade. During
French rule, the French failed to develop a plan to build railways in Laos, with only the
Don Det–Don Khon railway being completed. A railway link from China through Laos would greatly reduce cargo transit times and transportation costs between the two countries. Construction was expected to begin in 2011, for completion in 2014. There are plans to extend this railway south, from Vientiane across the Thai border to
Bangkok. The project initially stalled in the wake of the 2011 corruption scandal involving
China's minister of railways,
Liu Zhijun, but negotiations continued. In November 2012, the Laotian press reported that the money for the construction of the railway would be borrowed from the
Export–Import Bank of China, and construction would be started in 2013 and completed in 2018. Construction work worth US$1.2 billion was awarded to the
China Railway Group in September 2015. and in September 2019 progress was reported as 80% completed.
Unexploded bombs that have been dropped during the
Vietnam War would also be removed along the route. , Chinese state media reported that the US$6 billion project was 90% complete. Work crews started laying track in Laos in March 2020, five years after breaking ground. With all of the hundreds of tunnels, bridges and viaducts completed, cargo service was scheduled to start from December 2021. In April 2021, the northernmost section in
Luang Namtha Province was 97% complete. Track laying of the last section in
Oudomxay Province would be completed in May, leaving the project well on track for a 2021 opening. Track-laying was officially completed on 12 October 2021. The Thai province of
Nong Khai is also expected to gain more visitors through the railway, as well as fruit exports from Thailand to China benefiting from reduced transportation costs. As of 2024, it is the most significant Belt and Road Initiative project in Laos. ==Future expansion==