Siemens to supply high-speed trains, key railway systems to Vingroup's subsidiary VinSpeed

Siemens Mobility on Wednesday signed a comprehensive strategic cooperation and high-speed railway technology transfer agreement with VinSpeed, a unit of Vietnam’s Vingroup, to supply high-speed trains and key railway systems for planned rail projects in Vietnam.

Under the deal inked in Hanoi, Siemens Mobility will design, supply and integrate rolling stock as well as core railway systems, including signalling, communications and power supply, according to a Vingroup press release.

The German group will also provide maintenance support and transfer technology for VinSpeed’s high-speed rail projects.

The two sides also signed a framework agreement covering the supply of trains and related systems for the proposed Hanoi-Quang Ninh high-speed rail line in northern Vietnam and the Ben Thanh-Can Gio line in the southern region.

Siemens Mobility plans to supply its Velaro Novo trains, the company’s latest generation of high-speed rolling stock. The distributed-power electric multiple unit has a top speed of 350 km per hour and is designed with a wider car body to increase passenger capacity by at least 10% compared with previous generations, the company said.

Energy consumption is about 30% lower than older models, helping to cut emissions and operating costs, while the trains are designed to handle gradients and varied terrain, including mountainous, urban and coastal areas.

The Velaro Novo will be equipped with the European Train Control System (ETCS) Level 2 combined with automatic train operation (ATO) technology, enabling higher safety standards, optimized energy use, and increased service frequency.

Pham Thieu Hoa, CEO of VinSpeed, said the partnership marked a key step in the company’s strategy to develop modern transport infrastructure in Vietnam and deliver international-standard high-speed rail lines.

Michael Peter, CEO of Siemens Mobility, commented that the turnkey project combining advanced infrastructure technology and next-generation trains could transform rail travel for millions of passengers, while supporting long-term economic, tourism and industrial growth.

VinSpeed is part of Vingroup’s (HoSE: VIC) infrastructure pillar and aims to play a leading role in shaping the future of Vietnam’s railway industry.

VinSpeed on May 15 announced its registration to invest in Vietnam’s North-South high-speed railway project. The behemonth project will have an estimated investment of VND1,562 trillion ($60.24 billion), excluding costs related to compensation, relocation support, and resettlement for land clearance. It is scheduled for completion by 2030.

The company commits to mobilizing 20% of the total investment capital, equivalent to $12.27 billion. For the remaining 80%, excluding costs related to compensation, relocation support, and resettlement for land clearance, the company proposed borrowing from the state budget, through zero-interest loans, repayable over a 35-year period from the disbursement date.

Compared to the investment plan approved under the parliament's Resolution No. 172/2024/QH15, VinSpeed’s proposal would substantially reduce fiscal pressure on the national budget. This model gains further relevance considering the global trend of high-speed rail projects struggling with cost recovery and sustained profitability.