Hyundai Rotem Secures $332M Contract to Equip Ho Chi Minh City’s 64km Metro Line

Hyundai Rotem Vietnam rail market entry has begun through a contract. The contract is with Vietnam’s Thaco Group. It covers the Ho Chi Minh City Metro Line 2 project. This is reported by the railway transport news portal Railway Supply.

According to Hyundai Rotem’s official blog, the agreement was signed on April 23. It also values the contract at about USD 332 million, equivalent to 491 billion won.

Under the deal, Hyundai Rotem will supply automated metro trains for the line. Also, some vehicles are expected to be produced at a THACO-built facility in Vietnam. The arrangement is intended to support the country’s railway industry. It is also intended to strengthen medium- and long-term cooperation between the companies.

In addition, Hyundai Rotem and Thaco Group signed a memorandum of understanding. It covers the supply of signaling systems for the same line. That agreement opens the possibility of the first export of an automated rail operation system.

Don’t miss…Siemens Ships Third Federally Funded Amtrak Airo Trainset for Testing Today

Separately, Thaco Group is responsible for building Line 2. It is one of Vietnam’s major conglomerates.

As International Railway Journal reported, the line is one of Vietnam’s major railway infrastructure projects. At the same time, it is expected to be completed in 2030. It will extend for 64 km and include 36 stations. Construction is planned in three phases.

“Entering the Vietnamese rail market allows us to expand our business and build a solid foundation for local cooperation. We aim to become a long-term partner in the development of the Vietnamese rail industry and identify new business opportunities, while also contributing to the development of the Korean rail industry,” said a Hyundai Rotem representative.

Hyundai Rotem Vietnam rail market entry backed by South Korean support

Hyundai Rotem notes that extensive government support mainly made the contract possible. The company links that support to South Korea’s “pragmatic diplomacy” policy. Meanwhile, stronger cooperation commitments came from South Korean and Vietnamese leaders. They helped open the way for the first export of Korean electric trains to Vietnam. They also supported possible future cooperation, including in high-speed trains.

After the Korea–Vietnam summit in Hanoi, South Korean President Lee Jae-myung stated his view. He said he “hopes this railway export contract will contribute to improving Vietnam’s railway infrastructure”. He also emphasized his confidence in Korean railway technology.

South Korean Transport Minister Kim Yoon-duk also discussed transport infrastructure cooperation. The discussion included the railway sector. In addition, South Korean authorities have actively supported entry into the Vietnamese market. That support included visits and exchanges of expertise on urban transport.

Thaco cooperation and future railway projects

The move into Vietnam is also expected to create opportunities for South Korea’s railway industry. Separately, Hyundai Rotem works with more than 500 domestic suppliers to enter foreign markets. The company also carries out joint development strategies. These include support funds and research and development projects.

The strengthened cooperation with Thaco is expected to help Hyundai Rotem expand. That expansion is into the local market. Last year, the two companies signed a localization agreement. It covered urban and high-speed train production in Vietnam. The agreement continued the development of their cooperation.

Still, Hyundai Rotem presents this contract as an important starting point for expansion. That expansion is into Vietnam’s railway market. It could also support participation in future major projects. These include the North–South high-speed railway. That project is valued at USD 67.5 billion, or 100 trillion won. It is described as the largest infrastructure project in Vietnam’s history.

News on railway transport, industry, and railway technologies from Railway Supply that you might have missed: