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The 128.5-kilometer railway from Ho Chi Minh City to the border with Cambodia will form part of the Trans-Asia Railway linking Singapore and Kunming, China, the ministry said in a statement.
Vietnam expects to get official development assistance from China and other international donors to build the railway, it said.
A feasibility study on the project is being prepared by a Chinese consulting consortium and should be submitted to the Vietnam Railway Department later this month, the ministry said.
Construction is scheduled to begin in 2010.
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