I came across this article today. If it really materializes into technology transfer as the news stated, I can be certain that Viet Nam will award South Korea the contract for the HSR (if we decide to build). Technology transfer is the "stalemate" that has prevented Japan and Viet Nam from moving forward with this project for almost 20 years. Personally, I think there is a 20-30% chance this tech transfer agreement punches through, since Hyundai has a history of pulling out of tech transfer agreement with Vietnam. Back around 2010's, Huyndai signed the agreement with this same company THACO to transfer tech to produce the automotive diesel engine, but they eventually pulled out at ....extra time.
https://theinvestor.vn/thaco-deepen...-railway-manufacturing-in-vietnam-d19321.html
View attachment 201879
Thaco deepens ties with Hyundai Rotem to localize railway manufacturing in Vietnam
By Hai Yen
Mon, June 15, 2026 | 4:01 pm GMT+7
Vietnamese conglomerate Thaco and South Korea’s Hyundai Rotem have signed a detailed technology transfer and localization agreement for railway rolling stock production.
The agreement, signed last Thursday, advances a broader bilateral cooperation roadmap that includes technology transfer, workforce training, local component manufacturing, and the production of locomotives and railcars in Vietnam.
The partnership is expected to help Thaco gradually master railway manufacturing technologies, increase localization rates, and support the government’s strategy to develop a modern rail industry.
The latest agreement follows a series of milestones between the two companies. Last August, Thaco and Hyundai Rotem signed an MoU to cooperate in developing Vietnam’s railway industry.
In December 2025, the two sides
signed a localization agreement establishing a long-term framework covering technology transfer, workforce development, supply-chain expansion, and railway vehicle manufacturing in Vietnam.
The partnership entered a new phase in April 2026 when the companies signed a contract to supply 162 railcars for urban railway projects in Ho Chi Minh City. Under the contract, Hyundai Rotem will manufacture six complete railcars in South Korea and provide 156 CKD component kits, enabling Thaco to produce components domestically and assemble complete trainsets in Vietnam.
Under the newly signed agreement, Hyundai Rotem will transfer product designs, technical documentation, manufacturing processes, and quality-management systems to Thaco. The South Korean company will also train Thaco engineers and managers in South Korea and deploy specialists to Vietnam to support manufacturing, assembly, testing, and quality-control activities.
To support the localization strategy, Thaco has invested in a 320-hectare railway and multi-purpose mechanical manufacturing complex located within a 786-hectare mechanical engineering and supporting-industry industrial park in HCMC.
The facility is designed as an integrated manufacturing ecosystem featuring advanced automation and smart production technologies. Its key facilities include an aluminum car-body manufacturing center equipped with high-pressure extrusion lines of up to 10,000 tons, a precision-machining center capable of processing large components up to 25 meters long, an automated welding center utilizing intelligent robotic welding systems, and locomotive and railcar assembly centers.
Beyond manufacturing, Thaco earlier
proposed investing more than VND1.56 quadrillion ($59.18 billion) in the planned North-South high-speed railway. The company said it is prepared to hold at least 51% equity, including a direct contribution of about VND312 trillion ($11.84 billion). The remaining capital would be financed via domestic and foreign loans with government guarantees and long-term interest support.
