China Railway Signal & Communication has signed a memorandum of understanding (MoU) with state-owned Vietnam Railways Corp for railway development in the Southeast Asian country, the government said on Wednesday.

Vietnam has turned to China for funding and technology for its massive railway development projects, including three railway lines linking the capital Hanoi with China and a high-speed railway from Hanoi to the southern economic hub of Ho Chi Minh City.

The agreement between the two companies will pave the way for cooperation in railway planning, construction, training and operation, the government said in a statement.

Deputy Prime Minister Tran Hong Ha said on Tuesday that Vietnam wanted to speed up the construction of three new railways linking the two countries.

On 17 December, Vietnamese Deputy Prime Minister Tran Hong Ha met with Lou Qiliang, Chairman of China Railway Signal & Communication in Hanoi.

Tran Hong Ha highlighted the projects of the China-Vietnam Cross-border Standard Railway, the Hanoi and Ho Chi Minh City Urban Railway System and invited China Railway Signal & Communication to provide technology transfer and strengthen railway cooperation between the two sides.

Lou Qiliang said that China Railway Signal & Communication is interested in building new railway lines in Vietnam, improving the signalling system along the sections of the Vietnam North-South Railway, and providing safe, high-quality and technologically advanced railway solutions.