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The section was seriously damaged in the historic floods and storms last October.
The VND120 billion ($6 million) project will include the replacement of damaged tracks and an upgrade to Yen Due Station.
Speaking at the ground-breaking ceremony, general director of the corporation Nguyen Huu Bang said the section and Ru Tri dyke were swept away in the storm, disrupting the Thong Nhat passenger train service.
The Prime Minister has asked the corporation to upgrade infrastructure while ensuring technical standards were met. The work is expected to shorten travel times and improve safety.
It is also expected to facilitate transport in the region, easing the effects of floods near the Ngan Sau River over the next year.
The Ministry of Transport has also started a review of all bridges which are used by both trains and other vehicles.
Ministry statistics show that there are 10 such bridges in the country as well as over 300 kilometres of national highways that run alongside railway tracks with crossings.
There are on average 60 North-South trains per day, with up to 80 in peak periods.
Chief of ministry administration Nguyen Van Cong said that they had held an urgent meeting with the Vietnam Railway Administration regarding the matter.
Cong said it would take five years to separate the road and railway bridges under a development strategy.
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