Hyundai Rotem eyes Vietnam's North-South high-speed railway project

South Korea’s Hyundai Rotem is seeking to expand its footprint in Vietnam’s rail sector, including potential participation in the country’s planned North-South high-speed railway.

At a meeting in Hanoi on Thursday, standing Deputy Prime Minister Pham Gia Tuc received Hyundai Rotem chairman and CEO Lee Yong-bae, who was part of a business delegation accompanying South Korean President Lee Jae Myung on a state visit to Vietnam on April 21–24.

Lee highlighted the company’s experience in Vietnam, particularly its involvement in urban railway projects in Ho Chi Minh City, including technology transfer and operational support.

He said Hyundai Rotem is keen to take part in upcoming metro developments as well as the North-South high-speed rail project, offering capabilities ranging from rolling stock manufacturing and system integration to workforce training, and gradual localization of production and maintenance.

Deputy PM Tuc welcomed the proposal, encouraging Hyundai Rotem and other South Korean firms to explore deeper cooperation with Vietnamese partners and local authorities in the rail sector.

He also suggested the company consider expanding into other areas where it has expertise, including shipbuilding, green energy, and dual-use technologies.

Vietnam is expected to open up further investment opportunities as it revises and finalizes national and sectoral development plans, Tuc said, adding that these updates would provide a clearer framework for foreign investors to participate in large-scale infrastructure projects.

Last December, Vietnamese conglomerate Thaco signed a strategic cooperation agreement with Hyundai Rotem to localize the production of locomotives and carriages for urban metro and high-speed railway projects.

The South Korean enterprise will transfer core technologies and support Thaco in manufacturing locomotives and carriages for urban metro and high-speed railway projects under a Vietnamese brand.

The partnership extends beyond vehicle assembly, covering a full technology ecosystem including rolling stock, signal control, electro-mechanical (E&M) systems, maintenance, operations management, and repair services.

In a previous proposal to the government, Thaco plans to invest more than VND1,560 trillion ($59.18 billion) in the planned North-South high-speed railway. The company said it is prepared to hold at least 51% equity, including a direct contribution of about VND312 trillion ($11.84 billion). The remaining capital would be financed via domestic and foreign loans with government guarantees and long-term interest support.