Chinese tech heavyweight eyes railway projects in Vietnam

Chinese tech major PCI-Suntek Technology is looking to engage in the development, equipment supply, and operation of railway projects in Vietnam, said its chairman and CEO, Liu Wei.

The executive extended his interest during a meeting with Vietnamese Transport Minister Nguyen Van Thang in Hanoi on Wednesday.

The firm said that Vietnam is currently facing issues in railway development and investment that China previously encountered, he said, touting China’s advanced technologies in urban railway development.

Welcoming the proposal, Thang stressed that there is huge room for the firm and its Vietnamese counterparts to collaborate on railway development and operation.

Thang noted that Vietnam requires all investors and contractors to transfer technological expertise when they participate in local transport projects.

Vietnam aims to develop a rail network of 16 routes covering 4,802 kilometers by 2030, and 25 routes covering 6,354 km by 2050, the minister said.

The country is working on a plan to develop the North-South high-speed railway, with priority over the Hanoi-Vinh (central province of Nghe An) and the Ho Chi Minh City-Nha Trang town (central province of Khanh Hoa) sections.

In addition, a railway connecting Long Thanh Airport (Dong Nai province) to HCMC’s Thu Thiem district and the Bien Hoa-Vung Tau railway are drawing attention from foreign investors.

Vietnam has been in talks with China for cooperation in three railways linking the two nations, with two connecting to Guangxi province and one to Yunnan province.

In the Vietnam-China joint declarations of 2022 and 2023, both sides agreed to cooperate in developing the 388-km Lao Cai-Hanoi-Hai Phong railway at an estimated cost of $11 billion.

Regarding metro development, Hanoi and HCMC are set to develop a total 14 urban metro lines by 2035.

Last month, during his trip to China, Vietnamese Prime Minister Pham Minh Chinh received executives of Dalian Locomotive and Rolling Stock Co. Ltd., under China’s state-owned CRRC Corporation Limited (CRRC), and state-owned Power Construction Corporation of China (PowerChina), which both expressed their interest in railway projects in Vietnam.

Also in June, Transport Minister Thang hosted Japanese Ambassador to Vietnam Ito Naoki, who stated that Japan is willing to share experiences and support Vietnam in developing transportation projects, including the North-South high-speed railway.

At a meeting with South Korean President Yoon Suk Yeol in Seoul in July, PM Chinh requested the South Korean government to facilitate Vietnam to access a $2 billion loan through the Economic Development Promotion Fund, and to provide non-binding loan terms for the $2 billion Economic Development Cooperation Fund. These loans would help Vietnam develop strategic infrastructure, including the high-speed railway.