Thaco Group and Hyundai Rotem recently signed a strategic cooperation agreement focused on localizing the production of rolling stock for urban electric trains and high-speed trains in Vietnam.
Under the agreement, Hyundai Rotem will transfer its most advanced railway industry technology, enabling Thaco to manufacture products domestically under a Vietnamese brand. The South Korean partner will also support the development of a synchronized integrated system, encompassing rolling stock, signaling information, and mechanical and electrical components.
Thaco states this initiative will enable the company to gradually master the entire technology chain, including production, operational management, maintenance, and repair, all aligned with international standards.
Tran Ba Duong's company will invest in establishing a railway industrial complex. This complex, spanning 786 hectares in Binh Co ward, TP HCM, will include a rolling stock production area, a closed testing track system, and a repair center.
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A train manufactured and delivered by Hyundai Rotem (South Korea) in 2020. *Photo: Hyundai Rotem Website*
The agreement between Thaco and Hyundai Rotem comes as Vietnam actively pursues a strategy for railway industry development. Thaco has also proposed numerous significant projects, collectively valued at tens of billions of US dollars.
Earlier this year, Prime Minister Pham Minh Chinh invited Thaco to participate in researching, transferring technology, and manufacturing carriages and locomotives for high-speed railways.
By May, Thaco submitted a proposal to invest in the North-South high-speed railway project, with a total estimated investment of approximately 61,35 billion USD. The company committed to self-financing 20% of the capital, equivalent to nearly 12,3 billion USD. The remaining funds would be secured through loans from domestic and international credit institutions. Thaco also requested a government guarantee and interest rate support for a 30-year period, with project-generated assets serving as collateral.
Tran Ba Duong's company also proposed exploring investment in the 47 km Ben Thanh - Thu Thiem - Long Thanh railway line. Should they not be selected as the investor, they committed to transferring all research findings to the city without requesting reimbursement for costs incurred.
Thaco plans to increase its charter capital from approximately 30.500 billion dong to 40.520 billion dong this month, achieved through stock dividends. The company stated this measure aims to acknowledge and safeguard shareholder interests, while also bolstering financial resources for the implementation of key investment projects.
Phuong Dong
