Vietnam, June 2026 — South Korea's Hyundai Rotem has signed a technology transfer agreement with Vietnam's THACO Group to establish local metro train manufacturing capabilities. The partnership supports Ho Chi Minh City's long-term vision to develop a 1,024 km metro network comprising 27 lines while expanding Vietnam's domestic rail industry.
The collaboration follows Hyundai Rotem's rolling stock contract for Ho Chi Minh City Metro Line 2 and includes the supply of 162 metro cars, comprising six fully assembled train cars and 156 knock-down units for local assembly. THACO plans to construct a dedicated 320-hectare manufacturing facility, with construction expected to begin in July 2026 and production targeted to commence in April 2027.
For Vietnam's rail sector, the initiative represents a significant step towards establishing a domestic rolling stock manufacturing ecosystem. Local production is expected to improve supply chain resilience, develop engineering capabilities, and support future metro expansion projects while creating opportunities for technology transfer and localisation of rail components.
The agreement aligns with Vietnam's broader strategy to accelerate investment in rail infrastructure, including urban transit systems and the planned North–South high-speed railway. As metro construction gathers pace across major cities, domestic manufacturing capacity is expected to play an increasingly important role in supporting long-term fleet procurement and reducing project delivery costs.
Source: VnExpress International
Hyundai Rotem to Support Vietnam's Metro Train Manufacturing Ambitions
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As Southeast Asian cities expand their urban rail networks, developing domestic rolling stock manufacturing has become a strategic priority to strengthen local supply chains and reduce reliance on imports. Hyundai Rotem will partner with Vietnam's THACO Group to manufacture metro trains locally, supporting Ho Chi Minh City's planned 1,024 km urban rail network.
