Vietnam: The country government has tasked the national operator VNR with delivering the project. A 250 ha site in the outskirts of Hanoi has been allocated for this purpose.
The $700 mln complex will feature 17 functional zones covering the entire production chain. These include a 15 ha locomotive assembly area, plus workshops for production of bodies, freight wagons, metro trains, high-speed rolling stock and various components. The site will also house R&D, testing and training centres.
The project will be delivered in phases. Phase one (2029–31) will focus on locomotive assembly and refurbishment, plus passenger coach and freight wagon production. Phase two (2032–35) will raise localisation to 30% and expand the product range to include electric locomotives, spare parts, infrastructure elements, signalling and telecoms systems. High-speed train assembly with technology transfer and 20% localisation is also under consideration, with ambitions to reach 80% by 2050.
The detailed financial model is yet to be finalised. Broadly, state budget funds will cover main infrastructure, while commercial firms will lease sites and production facilities at preferential rates.
Vietnam’s railway development plan calls for extensive new line construction, including high-speed routes, and a major ramp-up in domestic rolling stock output. VNR has previously estimated requirements for 2030–40 at 261 locomotives, 1,000 passenger coaches, 7,000 freight wagons, 1,500 metro cars and 1,100 high-speed trainsets.
This makes the country attractive to global players. Late last year, South Korean firm Hyundai Rotem signed a deal with local group THACO to build a locomotive, metro and high-speed train plant. Other firms, including Russia’s TMH, are also eyeing the market.
