Vietnam: In late March, the country’s Prime Minister Phạm Minh Chính declared a course for the rail industry sovereignty. He stated that within the years 2030–2045, Vietnam would master domestic manufacturing of locomotives, passenger coaches, EMUs and train components, and the whole nation ought to push beyond its limits to achieve that goal.
Following the first meeting of the specially created Steering Committee for Nationally Important Railway Projects, Phạm Minh Chính has assigned the Ministry of Industry and Trade to develop the relevant plan and submit it to the government by June.
The national operator VNR has recently announced that Vietnam’s rolling stock demands renewal. Taking into account development of infrastructure between 2030 and 2050, the country is expected to need 261 locomotives, 1,000 passenger coaches, 7,000 freight cars and 1,500 urban rail cars.
Besides, a total of 1,100 cars for high-speed trains are needed in light of last year’s approval of the construction of the first HSR line. The rolling stock supplier has not been yet determined, but the local auto manufacturer Thaco is claiming its readiness to participate in the manufacture of HSR trains.
It is worth noting that Vietnam has domestic production of rail vehicles. Last week, VNR Deputy General Director Hoang Nang Khang noted that freight cars and passenger coaches are assembled at the national operator’s facilities with localisation levels of 70% and 80%, respectively. Besides, Gia Lam Train, a local private railway company, specialises in the manufacture and overhaul of passenger coaches and also locomotive renovations.
Meanwhile, Vietnam still has to import locomotives, though the country has its own production of frames, fuel tanks, air duct systems and other components. Vietnamese companies have also mastered manufacturing of bogies, car bodies, interior elements, and doors for EMUs. According to Hoang Nang Khang, assembly of EMUs can be also organised domestically with 30% localisation.
The country’s overall goal after 2030 is to master production of 80% of train components and establish new facilities for rolling stock manufacturing. Thus, Vietnam plans to produce locomotives and passenger coaches for speeds of 200 km/h and EMUs for 120 km/h.
Considering the financial mechanisms for achieving the announced goals, VNR suggests combining government investments, preferential loans, and also tax incentives, such as exempting the enterprises from taxes on imported equipment, components and materials.
In January 2025, Kirill Lipa, TMH General Director, participated in the official visit to Vietnam as a member of the delegation headed by Mikhail Mishustin, Russian Prime Minister. As Interfax cites Mr Lipa’s statement in Hanoi, TMH is exploring the Vietnamese market for potential deals and is interested in growing its presence in the country. Meanwhile, some global players have already entered the rail market of Vietnam, with Alstom delivering metro trains for Hanoi and Hitachi Rail producing the same type of vehicles for Ho Chi Minh City.
