China offers loans, technology for Vietnam railways

China has offered to boost ties with Vietnam on railway infrastructure, from loans and technology to training and industrial capabilities, a joint statement issued by its foreign ministry showed on Friday. 

China said it would guide enterprises to participate in railway construction projects in its smaller neighbour, according to the statement after President Xi Jinping and his Vietnam counterpart To Lam met on Wednesday.

Both see the railway effort as a "new bright spot" in strategic ties, the statement added, echoing a call by the leaders for more transport and logistics links.

Vietnam is a partner in China's flagship Belt and Road Initiative for transport links between Asia and Europe, with many projects funded through loans and investments by its state-owned institutions.

Both countries should maintain high strategic clarity and prioritise political security, Xi told Lam, who is set to wrap up on Friday his first overseas trip since he was elected Vietnam's president last week.

Among the 32 cooperation documents they signed were deals for a railway feasibility study and efforts to boost related talent capacity, the official news agency Xinhua said.

They will also strengthen ties in fields such as aviation, security, technology, new energy and critical minerals, the statement added.

Vietnam's budget airline Vietjet signed a finance lease pact this week with China's SPDB Financial Leasing for 10 C909 narrow body aircraft from Shanghai-based COMAC. 

Reuters