Siemens wants to join high-speed railway development in Vietnam: exec

German technology giant Siemens AG wants to participate in infrastructure development projects in Vietnam, especially high-speed railways.

Peter Koerte, a managing board member of Siemens, made the statement at a meeting with Prime Minister Pham Minh Chinh on Wednesday in Tianjin city, China.

Chinh is attending the 16th Annual Pioneers Meeting of the World Economic Forum and working in China.

Siemens is a global technology heavyweight in the fields of industry, infrastructure, transportation, and healthcare. It is focusing on pioneering in industrial AI, with 2024 revenue of 75.9 billion euros and about 312,000 employees worldwide, according to Koerte, also chief technology officer and chief strategy officer.

Siemens was officially established in Vietnam in 1993 and currently has three offices in Hanoi, Danang and Ho Chi Minh City and a manufacturing plant in Binh Duong province.

Prime Minister Chinh said he highly values the effective investment activities of Siemens globally and in Vietnam and welcomes its wish to expand, especially in infrastructure development - a top priority of the country.

According to the cabinet leader, Vietnam identifies infrastructure as one of the breakthroughs in the country's development. It allows diverse investment models, including public-private partnership, for large-scale, national key infrastructure projects, especially in transportation, energy and digital infrastructure.

He added that the country has reformed its institutions. "Many open mechanisms and policies have created conditions for businesses to invest with a wider scope and more open mechanisms."

Chinh welcomed Siemens's interest in Vietnam's high-speed railway project, noting that in addition to this project, the country is investing in development of railway lines connecting with China to Central Asia and Europe.

He suggested Siemens work with ministries, state agencies, and Vietnam Railways Corporation to discuss participation possibility.

The Vietnamese Government on April 23 issued a resolution that details a roadmap for implementing the North-South high-speed railway project, requesting all necessary conditions be completed for construction commencement no later than December 31, 2026, one year earlier than initially planned.

The North-South high-speed railway project, estimated to cost $67.34 billion, will have a designed speed of 350 km/hour. The 1,541 km electrified railway route will have 23 passenger and five cargo stations connected to key cargo hubs. It will begin at the Ngoc Hoi station in Hanoi and pass through 20 provinces and cities before ending at the Thu Thiem station in Ho Chi Minh City.

Private conglomerate Thaco Group last month proposed to invest in the project, following a similar proposal from heavyweight Vingroup.

Most recently, an alliance between Mekolor, a relatively unknown Vietnamese company, and American entity Great USA showed an intention to participate in this national project.

The alliance said it will arrange and demonstrate sufficient cash resources to ensure the smooth implementation of the project with $100 billion from investment funds under the Great Core Fund and Mekolor Capital - part of the Mekolor-Great USA ecosystem.

The government on Wednesday proposed the National Assembly, the country's legislature, allow private investors to develop the gigantic project.

Previously, the Politburo, the country's supreme decision-making body, okayed public investment for this behemoth project. However, after it issued Resolution No. 68 on private economy development, several private conglomerates have proposed to directly invest in this project.