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Home Finance & Markets

Vietnam Starts Construction of Hoang Lien Tunnel and Major Lai Châu Projects

Staff Writer by Staff Writer
01/04/2026
in Finance & Markets, Geopolitics, Tourism
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Work has started on a cluster of major projects in Lai Châu province that officials say will transform regional transport, tourism and housing. The flagship scheme is the Hoang Lien road tunnel, a high-standard twin-bore mountain tunnel running across Lai Châu and neighbouring Lào Cai province. Construction is scheduled from 2023 to 2027 with an estimated investment of VND 3,300 billion from central and provincial budgets and other legal sources.

Hoang Lien tunnel to boost regional links

The full route stretches 8.8km, of which the tunnel section is about 2.6km. Two parallel bores will sit 30m apart, each 9.75m wide to carry two lanes of two-way motor traffic. Designers have combined Japanese technical standards with Vietnams national specifications to meet high safety and technical requirements. The tunnel will have reinforced concrete lining, a cement concrete carriageway and integrated systems for drainage, lighting, ventilation, fire fighting, CCTV and communications.

Beyond the bores, the project includes approach roads and viaducts, and 11 new bridges to negotiate complex mountain terrain. The connecting road and bridge sections are being built to mountain road class III standard with a design speed of 60km/h. Authorities describe the Hoang Lien tunnel as the highest-elevation road tunnel in Vietnam and one of the most modern mountain tunnels in the north-west region.

Officials say the tunnel will replace some 17km of winding, landslide-prone mountain road that is often closed in the rainy season and subject to ice and snow in winter. Once completed, it should accelerate travel times, improve safety, and stimulate tourism, trade and logistics between Lai Châu, Lào Cai and major economic centres such as Hà Nội, Haiphong and Quảng Ninh. The route will also strengthen links to Sa Pa and the broader north-west, and contribute to border security and defence readiness.

At the ground-breaking ceremony, Minister Trần Đức Thắng underlined the projects strategic importance for socio-economic development and regional integration. He urged investors, consultants and contractors to ensure timely delivery, quality, safety and legal compliance, while prioritising worker safety, environmental protection and the livelihoods of affected communities. The Ministry of Agriculture and Environment has pledged to coordinate closely with other ministries and the two provinces to manage resources and environmental monitoring to balance infrastructure development with ecosystem conservation.

Alongside the tunnel, Lai Châu inaugurated the Eden Garden Sơn Bình resort complex on more than 106 hectares. Backed by Northern Cement Business Joint Stock Company, the resort carries registered capital of VND 6,000 billion, with VND 600 billion in equity and VND 5,400 billion in loans. Planned amenities include resort accommodation, adventure and eco-tourism, ski facilities, cable cars, spiritual sites and retail and entertainment centres. The developer expects the full project to attract about 300,000 visitors a year once complete.

The province also scheduled the ground-breaking of the Đoàn Kết social housing project, a VND 905 billion scheme to provide affordable homes for low-income workers. Covering around 31,000m2, the development will deliver approximately 960 social housing units across three apartment towers of 15 to 20 storeys, plus around 40 commercial housing units, a two-storey kindergarten and supporting infrastructure. Construction is planned between 2025 and 2028 and is expected to provide housing for roughly 3,000 residents.

Taken together, the transport, tourism and housing initiatives signal a coordinated push by Lai Châu to improve connectivity, expand economic opportunity and raise living standards in the north-west region.


Key Takeaways:

  • Construction begins on the Hoang Lien tunnel, an 8.8km route with a 2.6km twin-bore tunnel designed to high Japanese and Vietnamese standards.
  • The project, with a total investment of VND 3,300 billion, will shorten travel, replace 17km of winding mountain road and strengthen links between Lai Châu, Lào Cai and major northern centres.
  • Lai Châu also launched a VND 6,000 billion Eden Garden resort project and a VND 905 billion social housing development to boost tourism and affordable housing.
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