Pakistan prioritizes CPEC transport links; Vietnam pursues cross-border digital ID
Pakistan is advancing the Main Line-1 railway upgrade and Karakoram Highway realignment under CPEC, aiming to improve freight and regional trade. Vietnam plans to connect its VNeID app with Singapore and Laos, with potential expansion to other ASEAN states. The developments are part of broader Indo-Pacific infrastructure and digital integration efforts.
Pakistan's Main Line-1 railway project spans 1,733 kilometers from Karachi to Peshawar, with a planned dualisation. The Karakoram Highway realignment is split into two phases covering roughly 241 kilometers, partly necessitated by the Diamer-Bhasha Dam construction. Financing for the highway is set at an 85:15 ratio between China and Pakistan, with the aim of lowering logistics costs and strengthening Pakistan's regional trade position.
Vietnam's VNeID integration with Singapore's Singpass and Laos' LAeID is slated for pilot testing at Noi Bai and Tan Son Nhat airports. A deadline of October 30 requires three Vietnamese ministries to coordinate with foreign counterparts. Separately, Vietnam holds over 400 investment projects in Laos worth $8 billion, making it the second-largest foreign investor there, trailing China's $15 billion.
The acceleration of these infrastructure and digital projects could reshape cross-border movement and trade efficiency in the Indo-Pacific. For Pakistan, improved rail and road links may lower freight costs and integrate its economy with China's, though financing and construction risks remain. Vietnam's digital ID linkage could streamline travel for millions of ASEAN citizens, but may raise data sovereignty and privacy concerns. Vietnam's growing investment in Laos could deepen economic interdependence, potentially altering regional power balances, though it may also create dependency risks for Laos.