Vietnam Launches Its First Domestic Rail Production Facility

Vietnam has taken a major step toward technological independence by starting construction of its first facility for producing railway rails, including those for high-speed lines. This is reported by the railway transport news portal Railway Supply.

Hoa Phat Group (HPG) signed an agreement with UK-based Primetals Technologies for the design and supply of equipment. The new rolling line will have an annual capacity of 500,000 tons.

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Product deliveries are expected to begin in the third quarter of 2026, while full operations are scheduled to start in the fourth quarter of the same year.

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According to HPG Chairman Tran Dinh Long, total investment in the project will reach $556 million. The company is aligning the project with the government’s national transportation strategy.

HPG plans to actively participate in all key infrastructure initiatives across the country. This will help build a stable production chain within the national economy.

During Chinese President Xi Jinping’s visit to Vietnam in early April, it was announced that construction would begin on the 460 km Lao Cai – Hanoi – Haiphong railway line by late 2025.

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After 2030, two additional cross-border rail lines with China are planned, totaling 343 km in length. In December last year, Vietnam’s parliament approved a high-speed rail project spanning 1,541 km between Hanoi and Ho Chi Minh City.

The Hoa Phat project will strengthen Vietnam’s position in the Southeast Asian rail sector by reducing import dependency and opening up opportunities for export.

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