Under the agreement signed in Hanoi on Tuesday, Alstom will design and manufacture up to 83 Metropolis trains at its Valenciennes Petite-Forêt metro manufacturing site in France. Vingroup (HoSE: VIC), through its subsidiary Vinhomes (HoSE: VHM), will assemble up to 117 additional trains in Vietnam using components supplied by Alstom.

The deal also includes a technology license to support the local assembly of the additional trains.

The five-car trains will feature new-generation designs aimed at improving operational efficiency and passenger safety, Alstom said in an announcement on the same day.

The agreement was signed at Vingroup's headquarters in Hanoi in the presence of Alstom CEO Martin Sion and French Ambassador to Vietnam Didier Le Bret.

“This agreement is a major milestone for Alstom in one of the fastest-growing mobility markets in the world,” Sion said. He noted that the partnership would combine Alstom’s rail technology with Vingroup’s industrial capabilities and support the development of local rail expertise.

Vingroup vice chairman and CEO Nguyen Viet Quang said the collaboration would give Vietnam access to advanced rail technology while gradually developing domestic capabilities.

“Our partnership with Alstom will create an opportunity for Vietnam to access and progressively develop capabilities in advanced rail technologies,” Quang stressed.

The agreement is part of Vingroup’s strategy to develop infrastructure as a new strategic business pillar, he said. The firm aims to use international technology and expertise alongside domestic industrial capabilities to support the development of a local rail manufacturing ecosystem.

The partnership comes as Hanoi plans a major expansion of its urban rail network.

Under the city’s capital master plan with a 100-year vision, Hanoi aims to develop a 979-km urban rail network comprising 18 lines by 2045. The network is expected to become the backbone of public transport in the capital. Authorities also see urban rail as a way to ease traffic congestion, reduce pollution, and improve residents’ quality of life.

Alstom has operated in Vietnam for more than 30 years and has supplied railway signaling, telecommunications, and metro systems in the country.

The company has provided signaling and telecommunications modernization services for the first and second phases of the Hanoi-Vinh (Nghe An province) regional railway line. It has also supplied signaling and telecommunications systems for Ninh Binh station.

For the Hanoi Metro Line No.3, Alstom supplied and integrated the metro system, including 10 four-car Metropolis trains designed and manufactured in France. The project also includes the Urbalis 400 signaling system, power supply equipment, and depot systems.

The new agreement could deepen Alstom’s role in Vietnam as the country expands urban rail infrastructure while also increasing local participation in train assembly and related industrial activities.