The deal was inked in the context of Vietnam accelerating plans for urban metro lines and the gigantic North–South high-speed railway. It was signed on Thursday by Hyundai Rotem CEO Lee Yong-bae and Thaco chairman Tran Ba Duong in Seoul.

Accordingly, Hyundai Rotem 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.

The move is expected to help Thaco build a domestic rail supply chain, cut project costs, and meet international standards.

Thaco plans to develop a rail industrial complex on a 786-hectare site within its automotive and supporting industries zone in Binh Chi ward, Ho Chi Minh City. The complex will include rolling stock production lines, a closed-loop test track, and one of Vietnam’s largest rail maintenance hubs.

The deal follows a series of engagements in June-August, including Thaco’s meetings with Hyundai Rotem executives in South Korea and a memorandum signed at the Vietnam–Korea Economic Forum witnessed by Party General Secretary To Lam.

Beyond manufacturing, Thaco has proposed investing more than VND1.56 quadrillion ($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.