Domestic mechanical enterprises can manufacture locomotives and carriages.

Don't miss the opportunity

Vietnam’s high-speed railway project will become a key part of the country’s transport infrastructure development strategy. With the aim of connecting key economic regions, reducing travel time and increasing transport capacity, the project will not only help modernize the transport system but also promote the strong development of related industries.

The goal is to develop a railway industry that masters the production of carriages, locomotives and the railway industry-related ecosystem by 2030-2045...

Industry plays a key role in providing materials, equipment and technology to complete this project. In particular, the construction and manufacturing industry plays an important role in providing the necessary materials for railway construction, including concrete, steel, infrastructure components such as bridges, culverts and tunnels.

According to the Department of Industry (Ministry of Industry and Trade), currently, some domestic mechanical enterprises are completely capable of manufacturing locomotives, freight cars, passenger cars, etc. with a localization rate of up to 60%, if the order is of suitable scale. This is a significant number, showing that the railway industry does not lack potential, but lacks a systematic, persistent strategy with clear policy points.

With a mechanical ecosystem of more than 3,100 enterprises, 1.2 million employees, and a total industry revenue of over 1.7 million billion VND, Vietnam is completely capable of building a supply chain for components, equipment, and maintenance in the railway sector - instead of relying entirely on imports as it is today.

Sharing about this content, Mr. Nguyen Ngoc Thanh - Deputy Director of the Department of Industry said that, notably, many domestic mechanical products have met 15 - 40% of the demand for components in the automobile industry, a field requiring high technical standards, showing that the possibility of expanding to the railway sector is completely feasible if there is a suitable support mechanism.

This is an important premise for Vietnam to build a synchronous railway industry, from the production of locomotives, carriages, electrified signal systems, to maintenance and repair.

The policy corridor has been shaped

In recent times, the Party and the State have had many important policies to promote the development of the mechanical engineering industry in general and the railway industry in particular. Specifically, the Resolution of the 13th National Party Congress and Conclusion No. 49-KL/TW dated February 28, 2023 of the Politburo, the railway industry is identified as a priority investment sector.

In addition, there are Resolutions No. 172, 187, 188 of 2024-2025 of the National Assembly approving the investment policy for key railway routes, in which priority is given to the use of domestically produced railway industrial products.

The Draft Law on Development of Mechanical Engineering and Supporting Industries, which is being developed by the Ministry of Industry and Trade, will create a legal basis for policies to support mechanical engineering enterprises in investment, technology transfer, and improving competitiveness.

In the coming period, Vietnam will invest heavily in many key railway lines, including: North-South high-speed railway, Lao Cai-Hanoi-Hai Phong, Lang Son-Hanoi, Hai Phong-Ha Long-Mong Cai, and urban routes in Hanoi, Ho Chi Minh City...

This is a golden opportunity for Vietnam not only to import technology but also to master, produce and develop the national railway industry, aiming to be able to manufacture locomotives and carriages by 2030 - 2045 and build a synchronous and modern railway industrial ecosystem.

For the railway industry to really move forward, some economic experts believe that it is necessary to order domestic industry in railway projects using State capital, in addition, to establish industry standards, creating conditions for Vietnamese enterprises to develop standard products.

Completing the Railway Industry Development Project in June 2025

The Government Office issued Notice No. 157 dated April 5, 2025, concluding the conclusion of Prime Minister Pham Minh Chinh - Head of the Steering Committee at the First Meeting of the Steering Committee for important national railway projects and works.

The Prime Minister said that by 2030-2045, Vietnam must develop the railway industry: Master the production of carriages, locomotives and the ecosystem related to the railway industry.

This is a mode of transport with many advantages, harmonizing between modes of transport (air, waterway, maritime and road), transporting large volumes, fast, low cost, safe, environmentally friendly, with the ability to connect widely and cross-country... Therefore, the development of the railway system plays a key role in socio-economic development, connecting regions and promoting international integration, especially the North-South high-speed railway lines, urban railways, railways connecting to seaports, industrial parks, large cities and international intermodal railways.

The scale of investment in the railway system in the coming time is very large, including: High-speed railway project on the North - South axis; Lao Cai - Hanoi - Hai Phong railway, urban railways in Hanoi, Ho Chi Minh City, and routes Lang Son - Hanoi, Hai Phong - Ha Long - Mong Cai ...

Regarding railway industry development and human resource training, the Prime Minister requested the Ministry of Industry and Trade to preside over and coordinate with the Ministry of Construction and relevant ministries and agencies to develop a railway industry development project, submit it to the Government for promulgation, and complete it in June 2025.

On the side of the Ministry of Industry and Trade, Mr. Nguyen Ngoc Thanh said that the Department is actively advising on policies to maximize the internal strength of the mechanical industry, especially in the railway sector. The goal is to develop a competitive manufacturing industry that participates deeply in the global value chain.

In the investment project for the North-South high-speed railway project, according to calculations, the means and equipment of the project alone have reached 34.1 billion USD. If technology is transferred, this will be a very large and attractive market for businesses with strengths in locomotive production when for many years they have not had the opportunity to demonstrate themselves. And it is also an opportunity to spread and create momentum to promote the development of the mechanical engineering industry, which is considered the backbone of the economy.

Duy Anh

Source: https://congthuong.vn/doanh-nghiep-co-khi-trong-nuoc-co-the-che-tao-duoc-dau-may-toa-xe-382254.html