The project is expected to be operational in 2014 to meet public demand and ease traffic congestion in the southwestern part of the capital city.  

Under the agreement, the Chinese company will be responsible for surveying, designing and providing equipment to the project. It will also produce 52 train carriages, build flyovers, and transfer related technologies within five years from the signing date of the contract.

The project has a total investment of US$552.86 million, of which 85 percent is borrowed from China and the rest comes from the Vietnam Railways, which is the project owner.

The urban railway route will link the Cat Linh-Giang Vo intersection in downtown Hanoi with Ha Dong bus station in the southwest of the city. It has a design length of more than 13km with 12 stations, employing electricity to pull trains of four carriages (in the first phase) and five carriages (in the second phase). The train can transport up to 28,500 passengers per hour.