On December 4, THACO and Hyundai Rotem signed an agreement to localise rolling stock production for urban and high-speed rail in Vietnam, marking the start of a strategic partnership between the South Korean and Vietnamese companies. The deal comes as Vietnam accelerates its railway development strategy and plans to expand its national rail network.

Under the agreement, Hyundai Rotem will transfer the most advanced technologies in the railway industry to THACO. This allows the latter to produce urban trains and high-speed trains locally under the THACO brand.

The two sides jointly develop an integrated system comprising rolling stock, signalling and communications, and mechanical and electrical components. Leveraging the collaboration, THACO can gradually master the entire technology chain, from manufacturing to operation management, maintenance, and repair and maintenance.

In addition, the Vietnamese company will invest in a 786-hectare railway industry complex in Ho Chi Minh City, comprising a rolling stock manufacturing zone, a closed-loop test track system, and a repair centre.

THACO is proposing to invest in the North–South high-speed railway, with the company planning to invest $61.35 billion, including 20 per cent ($12.27 billion) in equity, and the rest raised from Vietnamese and foreign credit institutions.

Phase 1, lasting five years, will see the construction of two high-demand sections: Ho Chi Minh City–Nha Trang and Hanoi–Ha Tinh. The two would become operational immediately upon completion. Phase 2 would bridge the Ha Tinh–Nha Trang section.