Hyundai Rotem has entered the Vietnamese rail market by signing a contract with the Vietnamese Thaco Group for the Ho Chi Minh City Metro Line 2 project.
The contract, signed on April 23, is worth approximately USD 332 million (491 billion won).
Under this contract, Hyundai Rotem will supply automated metro trains. Some of the vehicles will be manufactured in Vietnam at a plant built by THACO, thereby contributing to the development of the local railway industry and the expansion of cooperation in the medium and long term.
The two companies also signed a memorandum of understanding for the supply of signaling systems for this line, opening the possibility of the first export of an automated rail operation system.
The Thaco Group, one of Vietnam’s leading conglomerates, is responsible for the construction of Line 2 of the Ho Chi Minh City Metro.
Ho Chi Minh City Metro Line 2 is a major railway infrastructure project in Vietnam, with an estimated completion date of 2030. The line will have a total length of 64 km and 36 stations, to be built 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.
Entry into the Vietnamese railway market, supported by the South Korean government
The contract signed for the Ho Chi Minh City Metro Line 2 project was made possible primarily thanks to extensive government support, as part of the “pragmatic diplomacy” policy, Hyundai Rotem notes. The strengthened cooperation commitments between the leaders of the two countries paved the way not only for the first export of Korean electric trains to Vietnam but also for potential future collaborations, including in the field of high-speed trains.
South Korean President Lee Jae-myung stated after the Korea–Vietnam summit held in Hanoi that he “hopes this railway export contract will contribute to improving Vietnam’s railway infrastructure” and emphasized his confidence in Korean railway technology.
South Korean Transport Minister Kim Yoon-duk, in turn, discussed cooperation in the development of transport infrastructure, including in the railway sector. Additionally, South Korean authorities have actively supported market entry into Vietnam, including through visits and exchanges of expertise on urban transport.
Hyundai Rotem’s entry into the Vietnamese market will also create new opportunities for the Korean railway industry. The company collaborates with over 500 local suppliers to penetrate foreign markets and implements joint development strategies, including support funds and research and development projects.
The strengthened cooperation with Thaco is expected to accelerate Hyundai Rotem’s expansion in the local market. Last year, the two companies signed an agreement on the localization of urban and high-speed train production in Vietnam, continuing to develop their partnership.
This contract represents an important starting point for expansion into the Vietnamese railway market and could facilitate participation in future major projects, such as the North–South high-speed railway, estimated at USD 67.5 billion (100 trillion won), the largest infrastructure project in Vietnam’s history.
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