The country’s longest highway linking Hanoi with the northern border province of Lao Cai officially opened in September, shortening travel times to 3.5 hours from the previous 10 hours.

The 245km, four-lane highway cost $1.2 billion. It stretches through five provinces and cities including Hanoi, Vinh Phuc, Phu Tho, Yen Bai and Lao Cai, and connects directly to Noi Bai International Airport.

“The highway is a landmark for Vietnam, it provides more opportunities for economic development in the northwest region,” said Dinh La Thang, Minister of Transport.

The northwest mountainous region claims a strategic position, where such big projects like the Vietnam-China cooperation-based “Two Corridors – One Economic Belt”  are being implemented.

The region is bordered by Laos to the west and China to the north. Covered by a number of prominent mountains, the typography includes a 180 kilometre-long mountain range that cuts diagonally across the region from northwest to southeast. Several peaks along the mountain range top 3,000 metres, including Southeast Asia’s tallest peak, Mt. Fanxipan.

Thanks chiefly to the relatively cold climate in the northwest, the land is ideal for the cultivation of tea, medicinal and aromatic herbs, and fruits. The region is also rich in minerals, with large reserves of granite, limestone, coal, clay and various other minerals such as iron and gold.

Besides that, the northwest has great potential for tourism development thanks to its 30 ethnic groups, spectacular natural landscapes, and a diverse culture, with some tourism destinations including Sapa and Dong Van Karst Plateau Geopark.

Due to its low starting point and difficult economic conditions, infrastructure development in the northwest area is worse than other parts of the country. Therefore, potential and advantages of the region have not been comprehensively and strongly utilised.

Since 2008, many investors have pledged to invest billions of dollars, however because of the slow pace of infrastructure improvement in this region, the disbursement is modest over the year. However, economic experts have said that things may change now, as the region is better connected with others, thanks to the highway.