Hyundai Rotem signs $330 million railway contract in Vietnam
South Korea’s Hyundai Rotem announced on April 23 that the corporation has secured its first railway contract in Vietnam, which is valued at about 491 billion won ($330 million).
The affiliate of Hyundai Motor Group said that it has signed a contract with Vietnam’s THACO Group to supply driverless train systems for Ho Chi Minh City’s Metro Line 2 project.
The contract represents the first entry of Korean-made rolling stock into Vietnam, according to Hyundai Rotem.
The agreement is expected to pave the way for expanded bilateral cooperation, potentially extending to high-speed rail projects in the future.
Following a summit in Hanoi, President Lee Jae Myung expressed confidence in Korea’s railway technology.
President Lee expressed his hope that the project would contribute to improving Vietnam’s rail infrastructure and lead to broader cooperation in large-scale transport developments.
Land, Infrastructure, and Transport Minister Kim Yun-duk also discussed infrastructure collaboration with Vietnamese counterparts during bilateral talks earlier this week.
Under the agreement, Hyundai Rotem will supply fully automated trainsets for Metro Line 2.
The Ho Chi Minh Metro Line 2 project is a key component of Vietnam’s urban transport strategy, with a total length of 64 kilometers and 36 stations.
Scheduled for completion in phases by 2030, the line is expected to significantly ease commuter congestion and improve urban mobility in the country’s largest city, Hyundai Rotem stated.
Hyundai Rotem said it has been working closely with THACO to localize production, including plans to manufacture some train components at THACO’s planned rail vehicle factory in Vietnam.
“We have laid a meaningful foundation for expanding our presence in Vietnam’s railway market and strengthening local partnerships,” a Hyundai Rotem representative said.
“We aim to contribute to the long-term development of Vietnam’s rail industry while creating new opportunities for the Korean rail sector.”
Exports of trains
Hyundai Rotem has steadily expanded its footprint in the global rail market, supplying rolling stock and turnkey systems across Europe, the Middle East, Asia, and the Americas.
The company has delivered metro trains, trams and high-speed rail vehicles to countries such as Türkiye, Poland, and Brazil, while also participating in large-scale railway projects in Egypt and Australia.
For example, the partnership with Uzbekistan serves as a historic breakthrough, marking the first time South Korea has successfully exported its indigenous high-speed rail technology.
Under this agreement with Uzbekistan Railways, Hyundai Rotem is supplying six trainsets based on the EMU-250 model, capable of reaching speeds up to 250km/h.
The project gained significant momentum in late 2025 when the company demonstrated its manufacturing agility by rolling out the first units three months ahead of schedule.
Simultaneously, Hyundai Rotem has solidified its foothold in the African continent through a massive rolling stock contract with Morocco’s national railway office, ONCF.
This project involves the supply of 440 railway cars, encompassing both high-speed and commuter variants, making it one of the largest single-order volumes in the company’s history.
With the Vietnam deal marking its entry into a new Southeast Asian market, Hyundai Rotem is expected to further leverage its global track record to target additional large-scale projects, according to market watchers.
“The rail division’s profitability is entering a recovery phase. The export unit price per car has substantially increased,” Kiwoom Securities analyst Lee Han-kyul said.
“By breaking through the stagnant domestic price ceiling with high-value-added export projects, the rail business is transforming into a steady profit-generating engine alongside the defense sector.”
The share price of Hyundai Rotem rose 0.21 percent on the Seoul bourse on April 23.
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출처 : The Korea News Plus(https://www.newsarticleinsiders.com)