North–South high-speed railway: Hyundai Rotem and THACO competing for the contract
The North–South high-speed railway in Vietnam is becoming a key battleground for domestic conglomerates and international partners. Against this backdrop, Hyundai Rotem and Truong Hai Group Corporation (THACO) are building a strategic partnership focused on localising the production of rolling stock and technologies under a Vietnamese brand.
Hyundai Rotem and THACO partnership on rolling stock localisation
South Korean company Hyundai Rotem has signed a strategic cooperation agreement with the private Vietnamese automotive conglomerate THACO. The document provides for technology transfer and the launch of local production of high-speed trains, metro cars and locomotives in Vietnam under a local brand. As noted by VietnamPlus, Hyundai Rotem’s interest in Vietnam’s high-speed rail projects is linked to long-term partnership and comprehensive technology transfer.
Under this agreement, Hyundai Rotem undertakes to provide THACO with the necessary expertise and solutions so that the company, which has already proposed that the Vietnamese government entrust it with the construction of the country’s first national high-speed main line, can deploy full-scale production. In addition to the rolling stock itself, the plans include localisation of signalling systems, electromechanical subsystems, as well as the organisation of maintenance, repair and operational management of the future infrastructure.
North–South high-speed railway and competition between VinSpeed and THACO
In November 2024, Vietnam’s parliament approved construction of the country’s first North–South high-speed railway line, with a design speed of 350 km/h, a length of 1,541 km and an estimated cost of 1,700 trillion dong (around $67 billion). This project, which marks the starting point for the development of a high-speed passenger rail market in Vietnam, is also analysed by Railway Supply, which closely follows the national high-speed rail programme.
Back in May, VinSpeed — a company established by the Vingroup conglomerate to organise high-speed rail services — proposed that the authorities entrust it with implementation of the project. VinSpeed estimated the project at 1,560 trillion dong ($59.2 billion excluding preparatory works financed by the state) and announced its readiness to invest 20% of this amount from its own funds. The size of the investment and the proposed participation structure were also reported by Việt Nam News, which highlighted the scale and ambition of this private initiative for the North–South line.
In June, THACO came forward with a competing proposal, seeing its role not only as an investor but also as an industrial partner. In April, the company had already stepped up preparations for the creation of an industrial complex covering 786 hectares, located about 40 km north of the Vietnamese capital. The site is expected to produce passenger and freight wagons, locomotives and railway infrastructure components, providing deep localisation for the North–South high-speed railway and other projects. Construction of the complex was scheduled to start in September, but as of now there has been no official information about the actual start of work.
The Vietnamese government has not yet announced which private investor will be selected to implement the North–South high-speed railway project. The authorities stress that the final decision will be based on the real capabilities, experience and willingness of the companies to provide not only financing but also sustainable operation of the infrastructure, rather than on declarative promises.
Railway.supply – December 10, 2025