On 9/9, deputy prime minister Ho Duc Phoc met with Tran Ba Duong, chairman of Truong Hai Auto Corporation (Thaco), and Lee Yong-bae, CEO of Hyundai Rotem.

During the meeting, Thaco chairman Tran Ba Duong stated the corporation's intention to invest in urban railway systems. He also discussed the potential for collaboration between Thaco and Hyundai Rotem in this area.

According to Hyundai Rotem CEO Lee Yong-bae, Vietnam has significant potential for high-speed rail development and exceptional growth in the coming years.

"Hyundai Rotem wishes to participate in the development of Vietnam's high-speed rail system through technology transfer for high-speed train production and cost-effective operation, along with solutions for human resource training, localization, maintenance, and upkeep during operation," he said.

Hyundai Rotem and Thaco also addressed deputy prime minister Ho Duc Phoc's questions regarding Hyundai Rotem's actual production results in high-speed rail, train design speed, operating costs, component and spare part production for operational reliability, and control signal systems.

Deputy prime minister Ho Duc Phoc meeting with Truong Hai Auto Corporation (Thaco) chairman Tran Ba Duong and Hyundai Rotem CEO Lee Yong-bae. Photo: VGP

Deputy prime minister Ho Duc Phoc meeting with Truong Hai Auto Corporation (Thaco) chairman Tran Ba Duong and Hyundai Rotem CEO Lee Yong-bae. Photo: VGP

Thaco, one of Vietnam's largest private corporations, operates in diverse sectors, including automobiles, agriculture, mechanics, and supporting industries. Last year, the corporation contributed over 23,700 billion VND to the state budget and employed over 60,000 workers. They also hold about a third of the domestic automobile market share, with sales of 92,000 vehicles in 2024.

In a meeting with prime minister Pham Minh Chinh earlier this year, Tran Ba Duong stated that Thaco would focus on participating in urban railway development, particularly train cars and steel components. The prime minister also suggested that the corporation participate in research, technology transfer, and production of train cars and locomotives for high-speed rail. Three months later, Thaco submitted a proposal to the prime minister, suggesting a direct investment of approximately 61.35 billion USD to construct the North-South high-speed railway.

Hyundai Rotem, a major South Korean mechanical engineering company founded in 1977 and part of the Hyundai Group, operates in the railway sector, including the production of high-speed trains, locomotives, carriages, signaling systems, and maintenance services. They are also a pioneer in hydrogen-powered train technology.

Deputy prime minister Ho Duc Phoc expressed his appreciation for the collaboration and technology transfer proposal from Hyundai Rotem to Vietnamese enterprises during the industrialization of the railway sector. He emphasized the need for a synchronized approach to high-speed rail systems, from initial design to rail production, signaling systems, locomotives, carriages, maintenance, upkeep, and operating costs, for effective operation.

Vietnam has numerous high-speed rail and urban railway lines planned for development in the near future. The government has assigned the Ministry of Construction to manage and advise the government in this area. Therefore, the deputy prime minister suggested that the companies work with the Ministry of Construction to present their comprehensive and synchronized design ideas for consideration and reporting to the relevant authorities for decision-making.

He acknowledged the presence and effective operation of major South Korean corporations and businesses in Vietnam. The Vietnamese government consistently supports businesses in increasing investment, production, and long-term, effective business cooperation in Vietnam to promote bilateral cooperation.

Phuong Dung