Hanio, June 2026 — Vietnamese conglomerate THACO Group has signed a cooperation agreement with South Korean rolling stock manufacturer Hyundai Rotem to collaborate on railway vehicle manufacturing in Vietnam. International law firm Indochine Counsel advised THACO on the transaction, which supports the country's long-term plans to strengthen its domestic rail industry.
The partnership is expected to focus on technology transfer, local production capabilities and the manufacturing of railway rolling stock for Vietnam's future rail projects. By combining Hyundai Rotem's expertise in railway systems with THACO's industrial manufacturing capacity, the collaboration aims to establish a local supply chain capable of supporting both urban transit and national railway development.
The agreement aligns with Vietnam's broader railway modernisation agenda, which includes proposed investments in high-speed rail, metro systems and conventional railway upgrades. Expanding domestic manufacturing is expected to reduce reliance on imported rolling stock while creating opportunities for local suppliers, workforce development and long-term maintenance capabilities.
The transaction also reflects growing international cooperation within Southeast Asia's rail sector, where governments are increasingly pairing major infrastructure investments with industrial localisation strategies. Such partnerships can help accelerate technology adoption while supporting the development of competitive regional railway manufacturing ecosystems.
As Vietnam advances its ambitious railway expansion plans, collaborations between global rolling stock manufacturers and local industrial partners are likely to play an increasingly important role in building sustainable, self-reliant rail supply chains and supporting future transport infrastructure projects.
Source: Law.asia
THACO and Hyundai Rotem Advance Vietnam's Railway Manufacturing Ambitions
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Localising railway manufacturing is becoming a strategic priority as countries invest in expanding rail infrastructure and developing domestic industrial capabilities. Vietnam's THACO Group and South Korea's Hyundai Rotem have formalised a cooperation agreement to jointly develop railway rolling stock production and technology transfer.
