Vietnam plans to start upgrading its rail route from Hanoi capital to northern Lao Cai province bordering China in 2008 with total investment of 160 million U.S. dollars, local newspaper New Hanoi reported Friday.

After completion, scheduled in December 2011, the upgraded route will be able to annually serve 5 million passengers and 7.5 million tons of cargoes. The route lies in the transport corridor from China's Kunming city and Vietnam's northern Hai Phong city.

Of the investment, 60 million dollars is expected to come from loans of the Asian Development Bank, 80 million dollars from funds of the French government, and the rest from reciprocal capital of Vietnam, said the report.

Vietnam's railway sector transported over 7.6 million tons of cargoes and 9.8 million passengers in the first 10 months of this year, according to the country's General Statistics Office.

Source: Xinhua