HANOI -- Vietnam's National Assembly on Wednesday approved investment for the Lao Cai-Hanoi-Hai Phong railway project, Vietnam News Agency reported.

According to the proposal by the Vietnamese government, the main railway line will stretch approximately 390.9 km, with three branch lines totaling about 27.9 km.

The railway will pass through seven provinces and two cities, namely Lao Cai, Yen Bai, Phu Tho, Vinh Phuc, Hanoi, Bac Ninh, Hung Yen, Hai Duong and Hai Phong.

It will be designed to have a speed of 80 km to 160 km per hour.

The project aims to construct a modern, integrated rail line to meet both domestic and international transportation demands, particularly between Vietnam and China.

The railway is expected to be a key driver for sustainable socio-economic development along the Lao Cai-Hanoi-Hai Phong economic corridor.

Vietnamese Minister of Transport Tran Hong Minh said the project would be constructed in the form of public investment, with an initial investment of over 203.2 trillion Vietnamese dong (about $8.369 billion).

The proposed funds would be sourced from the national budget, domestic capital, foreign capital and other legal investment, Vietnam News Agency reported.