The provincial People's Committee has asked the Ministry of Construction and Vietnam Railways (VNR) to review and adjust freight charges for cargo transported between Lao Cai Station and Lao Cai Border Station.
While Vietnam Railways (VNR) is targeting growth in international freight, cargo volumes through the Lao Cai border crossing have fallen sharply. Throughput dropped about 20 per cent to 307,178 tonnes in 2025 and was down a further 50 per cent year-on-year in the first five months of 2026.
Provincial authorities said one of the main factors behind the decline was the high cost of short-haul rail transport within the border area.
Freight charges between Lao Cai Station and Lao Cai Border Station currently range from VND 90,000 to VND 101,000 per tonne, despite the route covering only about 2.5-3.5 km and serving mainly as a transfer point for international rail cargo.
By comparison, rail transport from Haiphong Port to Lao Cai, a distance of roughly 350-390 km, costs only around VND 15,000-16,000 per tonne more.
Authorities also noted that railway freight rates had not been adjusted despite declines in diesel fuel prices, a key component of transport costs.
The province said the current pricing structure was placing a heavy burden on exporters, logistics firms and transport operators, particularly those handling bulk commodities such as sulphur, fertiliser, agricultural products and ore.
Lao Cai has urged VNR and railway operators to review freight rates and surcharges, lower charges where appropriate and separately disclose pricing for the short border section.
The province also called for closer coordination among railway operators, logistics firms and exporters to boost use of the Lao Cai-Hekou rail corridor.