Việt Nam’s railway industry currently only handles repairs and replacement of old systems, has yet to produce electric locomotives, and has no export products. Photo courtesy of baochinhphu.vn

HÀ NỘI — Việt Nam Railways (VNR) has proposed the development of a railway industrial complex in Hà Nội to master domestic production technology for rolling stock and components, which would reduce reliance on imports.

VNR has also requested several special mechanisms to fast-track implementation and attract private-sector participation alongside public investment.

According to VNR, the sector currently operates 258 locomotives, 980 passenger coaches, and over 4,300 freight wagons. By the end of 2025, at least 114 locomotives, 168 passenger coaches, and 1,472 freight wagons will reach the end of their service life.

Meanwhile, Việt Nam’s Railway Network Plan to 2050 targets 25 lines totalling over 6,300km, including 18 new routes. Urban railways, high-speed lines and regional routes alone will require thousands of new locomotives, passenger cars and freight wagons.

The North–South high-speed railway will need around 1,100 electric multiple unit (EMU) carriages, while urban rail projects require nearly 1,500 carriages. Electrified and upgraded lines will demand hundreds of locomotives, thousands of passenger coaches, and over 7,000 freight wagons.

Despite this growing demand, domestic rail manufacturing remains limited.

“The industry mainly repairs and replaces old systems, has no export products and cannot yet build electric locomotives. Specialised freight wagon production is also very restricted,” said VNR Deputy General Director Hoàng Năng Khang.

Mastering rail technology

To address these challenges, VNR has submitted plans for a 250-hectare railway industrial complex in Hà Nội, with the goal of localising production of locomotives and carriages, manufacturing components, developing signalling and electrification software, and providing major overhauls for rolling stock.

The complex will feature manufacturing and assembly plants for rolling stock, equipment and spare parts, research and development (R&D) and innovation centres, maintenance and repair facilities, and a direct connection to the national rail network.

“Importing everything cannot be a long-term solution. This complex will enable us to transfer technology to build locomotives, carriages under 200kph and urban rail cars domestically,” Khang said.

Public investment will fund infrastructure, R&D centres and connecting lines, while private firms will be invited to invest in manufacturing and operations. The production plan targets an annual output of 10 locomotives (diesel, hybrid or clean energy such as LNG and hydrogen); 15 electric locomotives; 50 standard passenger coaches; 60 high-speed coaches with a design speed of 160kph; 300 freight wagons (1,435mm and 1,000mm gauge); and 200 urban rail cars.

The complex will include about 20 functional zones, from bogie (railroad truck) production and assembly lines for EMUs and high-speed trains, to logistics hubs, training centres, test tracks and worker accommodations.

Phased roadmap

Development of new urban and high-speed rail lines will proceed in stages.

From 2029 to 2031, Việt Nam will import some locomotives and 160kph passenger trains. During this phase, the country will also begin assembling electric and clean-energy locomotives, producing passenger coaches capable of 160kph speeds, assembling metro EMUs and manufacturing 120kph freight wagons for the Lào Cai–Hà Nội–Hải Phòng route.

Between 2031 and 2032, the plan calls for the assembly of locomotives and urban EMUs, along with the completion of production for 160kph passenger and freight stock.

From 2032 to 2035, Việt Nam aims to master the production of passenger and freight coaches under 160kmph, continue assembling electric locomotives and raise the localisation rate to 30 per cent.

For the North–South high-speed railway, the roadmap includes several key milestones.

After 2032, Việt Nam will start assembling high-speed EMU trains under technology transfer agreements.

By 2035, the country expects to master assembly technology and achieve 20 per cent localisation.

Between 2035 and 2040, the localisation rate will be increased to 50 per cent.

Finally, from 2040 to 2050, the target is to reach 80 per cent localisation and fully produce parts and materials domestically.

To ensure the project’s feasibility, VNR has proposed several special mechanisms, including allowing direct contractor selection for high-tech packages, applying investment norms and unit costs based on domestic and international projects and shortening the time for environmental assessment while carrying out land clearance in a single phase for the entire project.

According to VNR Deputy Director Dương Hồng Anh, the Railway Law 2025 that took effect on July 1 includes a dedicated section on developing the railway industry, providing key incentives.

“This creates a crucial legal foundation for implementing the industrial complex and attracting private-sector investment,” he said. — VNS