Prime Minister asks Thaco to research and produce high-speed railway trains

Prime Minister Pham Minh Chinh inspects Thaco Group on February 8.

Thaco is one of the largest private enterprises in Vietnam, operating in many fields such as automobiles, agriculture, mechanics and supporting industries. Last year, the group contributed more than 23,700 billion VND to the state budget, creating jobs for more than 60,000 workers. They also account for about a third of the domestic automobile market share, with sales of 92,000 in 2024.

At a working session with Thaco on the morning of February 8 in Quang Nam, Prime Minister Pham Minh Chinh assessed that the group has high-quality products, a high localization rate, and more suitable prices. They also increase the application of digitalization and automation, focus on research and development, promote innovation, and industrialization.

Therefore, the Prime Minister proposed that this private corporation participate in research, technology transfer, and production of train cars and locomotives for high-speed railways.

The North-South high-speed railway project was approved by the National Assembly at the end of November 2024. The 1,541 km long route, starting at Ngoc Hoi station (Hanoi), ending at Thu Thiem station (Ho Chi Minh City), passes through 20 provinces and cities.

The entire line is newly invested with a double gauge of 1,435 mm, a design speed of 350 km/h, a load capacity of 22.5 tons/axle; there are 23 passenger stations, 5 freight stations. The project is applied in the form of public investment, with a total preliminary investment of 1,713 trillion VND (67 billion USD). The National Assembly requested that a feasibility study report be prepared from 2025, striving to complete the project by 2035.

Vietnam plans to build a high-speed railway using state funds and with few constraints on foreign technology transfer, Deputy Minister of Transport Nguyen Danh Huy said last October.

According to the leader of the Ministry of Transport, foreign contractors who want to participate must meet the prerequisite of using domestically produced goods and services, creating conditions for domestic enterprises to participate with a construction value of up to 34 billion USD. Currently, the transport sector has a team of self-sufficient contractors who can build roads, bridges, tunnels, and cable-stayed bridges to participate in the project.

The Ministry of Transport assessed that with the current domestic capacity and level, if technology is transferred and there are some appropriate policy mechanisms, Vietnam can master the entire construction, operation, maintenance industry and gradually localize the production of some components and spare parts.

According to experts, the Government can appoint leading enterprises in the fields of railways, infrastructure construction, mechanical engineering, information technology, etc. to participate in the high-speed railway project. The enterprises will produce components, equipment, and develop railway support industries.

However, the operator also needs to soon issue policies to encourage, provide incentives, and support large enterprises and economic groups in the country to participate in investment, research, and production in the fields of mechanics, automation software, artificial intelligence, and railway signaling information.

Previously, some domestic corporations expressed their desire to participate in the high-speed railway project. For example, at a conference between the Prime Minister and private enterprises last year, Hoa Phat Chairman Tran Dinh Long affirmed that the enterprise had the capacity to produce steel for the project's rails.

Similarly, Deo Ca Group once sent a letter to the Prime Minister requesting that Vietnamese enterprises create favorable conditions for participating in this mega-project. They proposed that domestic enterprises be allowed to participate in items such as bridges and tunnels. As for components such as locomotives, carriages, and signal information systems, domestic enterprises will be assigned to joint ventures with foreign enterprises to implement them.

VN (according to VnExpress)

Source: https://baohaiduong.vn/thu-tuong-de-nghi-thaco-nghien-cuu-san-xuat-tau-duong-sat-toc-do-cao-404838.html