China and Laos signed an intergovernmental railway cooperation agreement in Beijing on Friday night, planning to introduce a modern rail line in Laos in 2020. 

The two countries have agreed to use Chinese technology and equipment to build a 418-km line that will connect Kunming, capital of southwestern China's Yunnan province, with the Lao capital city of Vientiane, according to the agreement. 

The line will start in Kunming and travel southward to Jinghong and Mohan until entering Laos through the Lao border city of Boten. It will then travel past Luang Prabang and Vang Vieng before arriving in Vientiane. It will transport passengers as well as cargo. 

The railway's average speed is set at 160 kph and 60 percent of the line will be bridges and tunnels. China will be responsible for 70 percent of the 40-billion-yuan ($6.27 billion) investment, while Laos will be responsible for the remainder. 

The project will significantly boost the socioeconomic development of Laos, improve the nation's transportation and generate a lot of jobs for local people. Of course, it will also inject new momentum into the economy of China's southwestern regions, such as the construction machinery industry,  stone crushing industry, etc.