Infrastructure as Strategy: How Vietnam Rewires Indochina through Ports and Roads

fulcrum.sg Published 13 Feb 2026 Hoang Thi Ha

Vietnam is often portrayed as losing influence in Laos and Cambodia to China. But the construction of key infrastructure gives Hanoi some measure of agency.

Vietnam is often portrayed as steadily losing its traditional influence in neighbouring Laos and Cambodia to China. Such assessments overlook an emerging dimension of Hanoi’s statecraft: by building critical infrastructure along its southwestern coast and granting Laos maritime access, Hanoi is transforming its coastline into strategic leverage to counter regional power shifts and consolidate its geopolitical footprint.

Laos – the only country having “special relations” with Vietnam, rooted in shared revolutionary history and deep political trust – has long relied on overland routes to Thailand and the Chinese-built Kunming-Vientiane high-speed train. This has improved connectivity across its mountainous terrain and boosted trade with China, but saddled Vientiane with heavy debts.

Vietnam offers a cheaper alternative: providing direct maritime access to help Laos overcome its landlocked geography. Since 2001, Vung Ang Port in Ha Tinh province — the nearest major port to the Vietnam-Laos border — has been developed with three berths, granting Laos not just access but substantive control. Through the Lao-Viet International Port Company, the Lao government has expanded its stake from 20 per cent to 60 per cent, securing management rights and development priority over the port.

With a designed throughput exceeding 6.5 million tonnes per year, Vung Ang is becoming an important maritime outlet for Laos, handling its minerals exports and other bulk commodities, as well as cargo from northeastern Thailand. The 585km Vientiane-Vung Ang corridor is approximately 200km shorter than the route via Bangkok to Thailand’s Laem Chabang port, saving transport time and logistics costs. Both countries are discussing upgrades to rail and road connectivity along this axis, including the proposed Vientiane-Vung Ang railway and Vientiane-Hanoi expressway.

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Vietnam’s push for ‘chip-to-ship’ conglomerates raises red flags

Reuters.com November 5, 20252:32 PM GMT+7

[1/3]A logo on a Vinfast electric car and Vietnam’s national flag sticker at the ’80 Years Journey of Independence – Freedom – Happiness’ expo ahead of the country’s Independence Day celebration, at the National Exhibition Center in Hanoi, Vietnam, August 31, 2025. REUTERS/Athit Perawongmetha/File Photo Purchase Licensing Rights, opens new tab

  • Summary
  • Hanoi backs national champions with ‘preferential’ policies
  • Vingroup encouraged to bid for $70 billion railway, sources say
  • Central bank, finance ministry, Fitch flag financial risks
  • Investors remain cautious, fear favouritism

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Mega-regional infrastructure initiatives – Asia’s new noodle bowl?

Published on Monday, 26 October 2015

ADB has financed part of the Almaty-Bishkek highway.
ADB has financed part of the Almaty-Bishkek highway.

One of the striking lessons from Asia’s success over the past few decades is that it makes economic sense to invest in regional infrastructure to link two or more countries to support outward-oriented development strategies.

Cross-border projects such as the Almaty-Bishkek regional road in Central Asia, the India-Bangladesh Electrical Grid Interconnection project, and the Tonga-Fiji Submarine Cable have enhanced Asia’s economic development by stimulating flows of goods, services, investment, people and technology. They have also fostered regional peace and cooperation. Negative effects such as environmental degradation, displaced people, crime and trafficking from such projects have been largely mitigated through safeguards and public policies. Tiếp tục đọc “Mega-regional infrastructure initiatives – Asia’s new noodle bowl?”