Hyundai Rotem has successfully secured its inaugural railway contract in Vietnam, marking a significant entry into one of Southeast Asia’s rapidly expanding infrastructure markets. This strategic move establishes a crucial foothold for the company in the region.
The South Korean railway system manufacturer announced on Thursday the signing of a landmark 491 billion won (approximately $360 million) deal with THACO Group. Under this agreement, Hyundai Rotem will supply state-of-the-art driverless trains for Ho Chi Minh City’s ambitious Metro Line 2 project.
This pivotal contract represents the first export of Korean metro rolling stock to Vietnam, underscoring a major step forward in expanding South Korea’s rail exports. It also highlights deepening economic cooperation between the two nations in critical infrastructure development.
During a recent summit held in Hanoi, President Lee Jae Myung emphasized that this project would significantly contribute to enhancing Vietnam’s urban transport infrastructure. He further noted its potential to strengthen bilateral cooperation in large-scale logistics and infrastructure initiatives.
The Ho Chi Minh City Metro Line 2 is slated for completion in 2030 and will be constructed in multiple phases, eventually spanning 64 kilometers and featuring 36 stations. This extensive network will play a vital role in modernizing the city’s public transportation system.
Beyond the supply of fully automated trains, Hyundai Rotem has also entered into a memorandum of understanding (MOU) with THACO Group to potentially provide advanced signaling systems. This could mark the company’s first overseas deployment of its cutting-edge driverless train control technology, showcasing its innovation in rail solutions.
Committed to local collaboration and development, Hyundai Rotem confirmed its pursuit of localization initiatives with THACO. These plans include the potential production of key components at a dedicated rail vehicle manufacturing plant in Vietnam, aligning with the Vietnamese government’s objectives to foster a robust domestic rail industry.
The Ho Chi Minh City Metro Line 2 project is anticipated to create substantial opportunities for approximately 500 South Korean partner firms. This widespread participation is expected to offer diverse Korean industries valuable avenues for engaging in major overseas infrastructure markets.
Hyundai Rotem views its strategic entry into Vietnam as a crucial stepping stone towards securing even larger future projects within the country. This includes the highly anticipated North-South high-speed railway, an colossal undertaking estimated to be worth around 100 trillion won.
A company official commented, “Securing our first project in Vietnam provides a meaningful base, not only to expand our regional presence but also to solidify our local partnerships for sustainable growth in the Vietnamese railway sector.”
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