Hyundai Rotem signs $332 million Rolling Stock Contract with Vietnam for Ho Chi Minh City Metro

Ho Chi Minh City, Vietnam (Metro Rail Today): South Korea’s Hyundai Rotem has officially entered the Vietnamese rail market after signing a USD 332 million (₹2,750+ crore approx.) contract with Thaco Group for the Ho Chi Minh City Metro Line 2 project, marking a significant milestone in Korea–Vietnam infrastructure collaboration.

The contract, signed on April 23, 2026, covers the supply of automated metro trainsets, with a strong focus on localisation and long-term industrial cooperation.

Under the agreement:

• Hyundai Rotem will supply automated metro trains for Line 2
• A portion of the rolling stock will be manufactured locally in Vietnam
• Production will take place at a dedicated facility to be established by Thaco Group

This localisation strategy is expected to:

• Strengthen Vietnam’s domestic railway manufacturing ecosystem
• Enable technology transfer and skill development
• Build a foundation for future joint rail projects

MoU for Signalling Systems Opens New Export Avenue

In addition to rolling stock supply, both companies have signed a Memorandum of Understanding (MoU) for the supply of signalling systems for the corridor.

If finalised, this would mark:

• Hyundai Rotem’s first export of an automated rail operation system
• A broader expansion into integrated rail solutions, beyond rolling stock

About Ho Chi Minh City Metro Line 2

Metro Line 2 is one of Vietnam’s most critical urban transit projects:

• Total Length: 64 km
• Stations: 36
• Implementation: 3 phases
• Target Completion: 2030

The project is being developed by Thaco Group, one of Vietnam’s largest conglomerates, and is expected to play a transformative role in easing congestion and improving mobility in Ho Chi Minh City.

Government-Backed Strategic Entry

Hyundai Rotem highlighted that the deal was enabled by strong government-level support under South Korea’s “pragmatic diplomacy” policy.

Key developments include:

• Bilateral cooperation commitments during the Korea–Vietnam summit in Hanoi
• Active involvement of South Korean transport authorities in promoting railway exports
• Strategic push to position Korean rail technology in global markets

South Korean President Lee Jae-myung stated:

“We hope this railway export contract will contribute to improving Vietnam’s railway infrastructure,” expressing confidence in Korean rail technology.

Long-Term Growth Strategy in Vietnam

Hyundai Rotem’s entry is not a one-off deal but part of a broader expansion strategy:

• Collaboration with 500+ Korean suppliers for global projects
• Focus on joint R&D, localisation, and funding support mechanisms
• Ongoing partnership with Thaco for urban and high-speed rail manufacturing in Vietnam

Notably, the two companies had already signed an agreement last year to localise production of urban and high-speed trains, indicating a long-term commitment.

Gateway to Vietnam’s $67.5 Billion High-Speed Rail Market

This contract is expected to position Hyundai Rotem strongly for future opportunities, particularly:

• The proposed North–South high-speed railway project
• Estimated investment: USD 67.5 billion
• One of the largest infrastructure projects in Vietnam’s history

Commenting on the development, Mrs. Mamta Shah, MD & CEO, Urban Infra Group, said:

“Hyundai Rotem’s entry into Vietnam underscores the growing importance of localisation and strategic partnerships in global rail projects. By combining technology transfer with domestic manufacturing, this model not only accelerates infrastructure delivery but also builds long-term industrial capacity—something emerging economies increasingly prioritise.”

Hyundai Rotem’s $332 million contract for Ho Chi Minh City Metro Line 2 marks a strategic breakthrough in Southeast Asia, blending technology export, localisation, and diplomatic alignment.

As Vietnam accelerates its urban transit and high-speed rail ambitions, this partnership could serve as a launchpad for deeper international collaboration, setting the stage for the next phase of railway development in the region.