China's President Xi strengthens ties with Vietnam through rail grants and digital initiatives
China is set to offer grants to Vietnam for upgraded rail links and other infrastructure projects, including digital initiatives, during President Xi Jinping's visit to Hanoi. The grants could bring Vietnam closer to China as global powers vie for influence in the region. China's offer of non-refundable aid for the Kunming-Haiphong rail upgrade, which passes through Vietnam's rare earths mines, could be seen as a blow to Western backers who have offered loans to support Vietnam's transition away from coal. Additionally, China aims to strengthen digital interconnections with Vietnam, potentially including submarine cables and 5G infrastructure.