[9] A collaborative project between Laos and China, the line's northern end is directly connected to the Chinese rail system at Mohan in Yunnan, through the Yuxi–Mohan railway, and has provisions in the south to link up with the Bangkok–Nong Khai high-speed railway in Thailand and possibly all the way to Singapore via HSR.

[15] A railway link from China through Laos would greatly reduce cargo transit times and transportation costs between the two countries.

A Lao politician of Chinese descent, Somsavat Lengsavad, was reportedly the driving force behind the project on the Laotian side.

In October 2010, plans were announced for a 530 kilometres (330 mi) standard gauge railway linking Vientiane to Xishuangbanna, in Yunnan province in China.

[20] The project initially stalled in the wake of the 2011 corruption scandal involving China's minister of railways, Liu Zhijun, but negotiations continued.

[16] By 2015, a revised plan was agreed upon, under which both countries would jointly finance and operate the railway with a build-operate-transfer arrangement.

Work crews started laying track in Laos in March 2020, five years after breaking ground.

[7] The first EMU was delivered to Vientiane on 16 October 2021, and the line opened on 3 December 2021, a day after the 46th anniversary of the Lao PDR.

[12][29] The Thai province of Nong Khai is also expected to gain more visitors through the railway, as well as fruit exports from Thailand to China benefiting from reduced transportation costs.

However, the Vientiane end of the line will eventually cross the Mekong River on a new bridge to meet up with the Bangkok–Nong Khai high-speed railway once it is completed, making the connection.

[52] In the first year of operation, the railway only allowed ticket purchases up to three days in advance and online sales were not available.