Lee Yong-bae (right), president and CEO of Hyundai Rotem, and THACO Group Chair Tran Ba Duong pose for a photo at the signing ceremony for the Ho Chi Minh City Metro Line 2 project in Hanoi, Vietnam, Wednesday. (Hyundai Rotem)
Lee Yong-bae (right), president and CEO of Hyundai Rotem, and THACO Group Chair Tran Ba Duong pose for a photo at the signing ceremony for the Ho Chi Minh City Metro Line 2 project in Hanoi, Vietnam, Wednesday. (Hyundai Rotem)

Hyundai Rotem has secured its first railway contract in Vietnam, establishing a foothold in one of Southeast Asia’s fastest-growing infrastructure markets.

The company said Thursday it signed a 491 billion won ($360 million) deal with THACO Group to supply driverless trains for Ho Chi Minh City’s Metro Line 2.

The deal marks the first export of Korean metro rolling stock to Vietnam and is seen as a key step in expanding Korea’s rail exports under broader economic cooperation between the two countries.

During a summit in Hanoi, President Lee Jae Myung said the project would contribute to Vietnam’s transport infrastructure and help deepen bilateral cooperation in large-scale logistics and infrastructure development.

Scheduled for completion in 2030, Metro Line 2 will be built in phases across 64 kilometers with 36 stations.

Under the agreement, Hyundai Rotem will supply fully automated trains. The company also signed a memorandum of understanding with THACO to provide signaling systems, potentially marking its first overseas deployment of driverless train control technology.

Hyundai Rotem said it has pursued localization with THACO, including plans to produce some components at a rail vehicle plant in Vietnam, in line with the government’s push to develop a domestic rail industry.

The project is expected to involve around 500 South Korean partner firms, offering opportunities for broader industry participation in overseas markets.

The Vietnam entry is also seen as a stepping stone to larger projects, including the planned North-South high-speed railway, estimated at around 100 trillion won.

“Securing our first project in Vietnam provides a meaningful base to expand our presence and strengthen local partnerships,” a company official said.


hyejin2@heraldcorp.com