Brian Jeffrey
Vietnamese Companies Join Forces in Rail Development
Major Vietnamese firms, Thaco and Hoa Phat, are set to venture into urban rail and rail infrastructure, heeding Prime Minister Pham Minh Chinh’s call for private sector involvement in significant national projects.
Thaco, primarily involved in the automotive and industrial sector, aims to produce metro trains and steel structures. On the other hand, Hoa Phat, the leading steel manufacturer in the country, is considering a $400 million investment in a facility dedicated to manufacturing railway tracks, aligning with Vietnam’s broader rail expansion ambitions.
During a meeting with the Prime Minister, Tran Ba Duong, Chairman of Thaco, shared the company’s ambition to produce metro train cars and steel components destined for railway initiatives.
“Leveraging our engineering skills and global partnerships, we plan to enhance local production efficiency, which will lower costs while upholding quality. Our initiative will also create links with small and medium Vietnamese businesses within the supply chain,” Duong explained.
This September, Thaco will launch a 700-hectare industrial park in Binh Duong, which showcases its commitment to enhancing Vietnam’s manufacturing capabilities.
In addition to transportation projects, Thaco is also engaged in developing a large organic farming project spanning Cambodia, Laos, and Vietnam’s Central Highlands, emphasizing the importance of strategic irrigation planning for sustainable agriculture.
Thaco is also enhancing its logistics framework, having established a 5,000-ton container port that connects southern Laos and northern Cambodia with Vietnam’s Central Highlands and global markets. Furthermore, they have invested in 1,000 TEU container ships, directly facilitating transport from Chu Lai Port to Shanghai, thereby providing a competitive logistics solution for central Vietnam.
Tran Dinh Long, Chairman of Hoa Phat Group, pointed out the upcoming extensive public investment initiatives from 2025 to 2030, which will include new metro systems for Hanoi and Ho Chi Minh City and the Lao Cai-Hanoi-Hai Phong railway.
“This represents a significant prospects. Hoa Phat is poised to invest VND 10 trillion ($400 million) in a railway track production plant to support these developments, provided we have government assurance of market demand for these products,” Long commented.
Moreover, Hoa Phat aims to deliver 10 million tons of superior quality steel for railway infrastructure at prices that are more competitive than imports.
Vietnam’s Energy and Tech Investments Under Spotlight
Nguyen Viet Quang, CEO of Vingroup, detailed the company’s embrace of electric vehicles (EVs), renewable energy, and digital innovation.
VinFast is crafting a holistic EV ecosystem, featuring battery manufacturing, charging infrastructure, and smart energy solutions. Additionally, Vingroup is embarking on advancements in robotics and AI through its new subsidiaries, VinRobotics and VinOcean.
Quang highlighted the pressing need for policy enhancements to better attract investment in Vietnam’s energy sector and to ensure adequate supply and lower electricity rates.
“Vingroup is dedicated to leading innovation and sustainability efforts. With robust governmental backing, private sectors can significantly contribute to Vietnam’s transition towards greener and more digital initiatives,” Quang expressed.
Meanwhile, Le Van Kiem, Chairman of KN Holdings, emphasized the urgency of finalizing Vietnam’s revised Power Development Plan (PDP8) and promoting expedited renewable energy integration.
He also called on the government to establish clear guidelines regarding energy storage systems to guarantee stable incorporation of solar and wind energy.
Nguyen Le
