Hyundai Rotem Makes First Entry into Vietnamese Railway Market with 491 Billion Won Metro Contract

Securing Ho Chi Minh Metro Line 2 Project
Supplying Unmanned Electric Trains to THACO Group
Localizing Vietnamese Railways with Over 500 Korean Partner Companies

Hyundai Rotem has secured its first order in the Vietnamese railway market. It is being evaluated as establishing a foothold for entering the Vietnamese high-speed rail market together with over 500 domestic partner companies.

Yong Bae Lee (right), President and CEO of Hyundai Rotem, and Tran Ba Duong, Chairman of THACO Group, are posing for a commemorative photo at the contract signing ceremony for the Ho Chi Minh Metro Line 2 project held on the 23rd (local time) in Hanoi, Vietnam. Hyundai Rotem

On April 23 (local time), Hyundai Rotem announced that it had signed a contract worth 491 billion won with THACO Group for the Ho Chi Minh Metro Line 2 project in Vietnam.

THACO Group is one of Vietnam's leading conglomerates and is responsible for the construction of Ho Chi Minh Metro Line 2. Through this contract, Hyundai Rotem will supply unmanned electric trains for the metro line to THACO Group.

This achievement is seen as the result of comprehensive support under President Lee Jaemyung's "practical diplomacy" approach. Thanks to the promise of deepened cooperation between the leaders of both countries, domestically produced electric trains are entering Vietnam for the first time.

During a joint press announcement held after the Korea-Vietnam summit in Hanoi, President Lee Jaemyung emphasized, "I hope this Korean railway export contract will contribute to the improvement of Vietnam's railway infrastructure. I look forward to expanded cooperation between the two countries in the large-scale transportation and logistics infrastructure projects that Vietnam is pursuing."

Yoondeok Kim, Minister of Land, Infrastructure and Transport, also held bilateral talks with Vietnam on April 21 (local time), during which he held in-depth discussions on cooperation for transportation infrastructure development projects, including railways.

Additionally, Hyundai Rotem and THACO Group signed a memorandum of understanding (MOU) on the same day to supply signaling systems for Ho Chi Minh Metro Line 2, raising expectations for Hyundai Rotem's first overseas supply of unmanned driving signaling systems.

Ho Chi Minh Metro Line 2 is a key railway infrastructure project in Vietnam, targeting completion by 2030. The line will span a total length of 64 km and include 36 stations. Construction began in January and the project will be carried out sequentially in three phases.

This contract is also expected to create new opportunities for the domestic railway industry ecosystem. Hyundai Rotem is actively pioneering overseas markets together with the more than 500 domestic partner companies participating in this project and is implementing practical co-growth strategies, such as operating a co-growth fund and providing technical support, including joint R&D.

Strengthening cooperation with THACO Group is expected to accelerate Hyundai Rotem's entry into the local market. Last year, Hyundai Rotem signed an agreement with THACO Group to localize urban and high-speed rail vehicles, thereby contributing to the advancement of railway technology in Vietnam and consistently maintaining its cooperative relationship.

With this contract serving as a bridgehead for expanding into the Vietnamese railway market, positive effects are also expected for targeting large-scale projects such as the North-South High-Speed Rail project, which is anticipated to be commissioned in the future. The North-South High-Speed Rail project is estimated to be the largest infrastructure construction project in Vietnam's history, with a total project scale of around 100 trillion won.

A Hyundai Rotem official stated, "By entering the Vietnamese railway market for the first time, we have broadened our business base and established a meaningful foundation for local cooperation. In the long term, we aim to become a partner contributing to the growth of Vietnam's railway industry, to seek new business opportunities, and to build a solid foundation for the advancement of Korea's railway industry as well."

This content was produced with the assistance of AI translation services.