Hanoi will have a railway industrial complex worth more than 17,500 billion, aiming to localize the North-South high-speed railway line.
The Hanoi People's Committee has officially sent a dispatch to the Prime Minister proposing investment in the National Railway Industrial Complex Project, with a total preliminary investment of up to 17,509 billion VND.
Objectives and scale of the national railway industrial complex project
According to a document from the Hanoi People's Committee, the project is expected to be located in Chuyen My and Ung Hoa communes with an area of about 250 hectares. The scale and official boundaries will be specifically determined in the next steps after approval from competent authorities.
The selected location in the South of the city reflects the strategic nature of the capital's development planning, facilitating connection with the national transport system and optimizing the supply chain in the railway sector.
Hanoi City also proposed the Prime Minister to allow updating and integrating the planning of this Complex into related planning. Specifically, including the Hanoi Capital Planning for the period 2021-2030, with a vision to 2050 and the Adjustment of the Capital's General Planning to 2045, with a vision to 2065.
This integration is carried out in accordance with Article 22 and Clause 5, Article 38 of the Railway Law issued on June 27, 2025 and effective from July 1, 2025, ensuring legality and consistency in development planning.
Vietnam Railways Corporation (VNR) has proposed to the competent authority to approve the investment policy of this project. According to the proposal, this will be a modern multi-functional complex consisting of many important components.
The complex includes a factory for manufacturing and assembling railway vehicles, equipment and spare parts; a research and development (R&D) center with advanced technology; a professional repair and maintenance center; an infrastructure system connected to the national railway and synchronous auxiliary works.
The total preliminary investment of the project is about 17,509 billion VND, allocated from many different sources of capital. Public investment capital is used for the construction of connecting railway lines, technical infrastructure, R&D centers and other State-supported items.
In addition, the State capital is added to the enterprise to serve the construction of the assembly plant and related items. The project also calls for investors to participate in business cooperation, creating a diverse and effective investment model.
Expected progress
If approved, the project is expected to complete investment preparation within 1 year, construction within 3 years to complete phase 1 in 2029.
In the period 2029-2031, the complex will assemble electric locomotives, clean energy locomotives, and produce passenger cars with speeds under 160km/h. At the same time, it will assemble EMU (distributed power unit) trains for urban railways and produce freight cars with speeds of 120km/h for the Lao Cai - Hanoi - Hai Phong route.
In the 2032-2035 period, the goal is to master the technology of manufacturing passenger and freight cars with speeds under 160km/h, and assemble electric locomotives with a localization rate of about 30%. The complex will also produce materials and spare parts for vehicle repair, infrastructure, and signal information.
Strategy for localization and technology transfer of the North-South high-speed railway
Vietnam Railways Corporation said the project's goal is to domestically produce and gradually localize hardware and software components for information, signals and power supply systems. This is an important step in mastering technology and reducing dependence on imports.
The project aims to master the operation, maintenance and gradually produce components and spare parts for high-speed railways. At the same time, the consortium will participate in technology transfer, machinery investment, and production of locomotives and carriages for national and urban railways.
For the North-South high-speed railway, the consortium will participate in assembling EMU trains under a procurement and technology transfer contract. By 2035, it aims to master assembly technology and increase the localization rate to 20%.
The goal in the period 2040-2050 is to fully master the technology and achieve a localization rate of 80% for EMU trains. At the same time, produce materials and spare parts for exploitation and operation of the North-South high-speed railway.
Financial performance forecasting
It is expected that from 2030 to 2050, the complex will bring in revenue of about VND 228,102 billion, average profit of VND 1,141 billion/year, and payback period of about 16 years.
Strategic vision
The Railway Industrial Complex Project is not only of economic significance but also of strategic importance in the development of Vietnam’s railway industry. This is an important breakthrough that helps our country gradually master advanced technology in the field of railway transport.
With large investment scale and long-term vision, the complex promises to become the leading production, research and development center of Vietnam's railway industry, contributing to improving the country's competitiveness and technological independence in the field of modern transportation.
