Private sector should take up the responsibility for managing railway services, according to the Ministry of Construction's proposal.
Vietnam is strengthening its domestic railway industry with a series of strategic policies aimed at modernizing infrastructure, promoting local manufacturing, and fostering sustainable growth.
The Ministry of Construction has proposed several key measures to develop railway services and products through State commissions and private enterprises. The objective is to increase the rate of local content and reduce dependence on imported machinery and parts.
To achieve this, the government plans to prioritize the procurement of materials, equipment, and railway components that have high market potential and suit Vietnam's technological capabilities, production levels, and available workforce. The ministry has identified eight key product and service categories to be divided between two groups: research, development, standards, training, and technology transfer; and manufacturing and assembly of railway equipment such as rails, turnouts, accessories, signaling systems, traction power supply systems, and vehicles.
Vietnam seeks to become self-sufficient in rolling stock production by creating a $700 million railway complex dedicated to manufacturing locomotives, rail cars, and components, with the aim of achieving this by 2030–2045. The government is also pursuing public-private partnerships, technology transfer agreements, and incentives such as priority access to land, tax incentives, and streamlined regulatory processes to attract investment and accelerate project implementation.
The government is considering a $60 billion high-speed rail project linking Hanoi and Ho Chi Minh City, which, if completed by 2030, could serve as a catalyst for economic development, job creation, and technological advancement. To ensure long-term viability and reduce dependency on foreign systems, Vietnam is negotiating technology transfer agreements with international partners like Japan and China.
Currently, Việt Nam has 35 enterprises involved in the railway sector, but the majority rely heavily on imported machinery and parts. VNA/VNS Photo
Comprehensive public consultation processes and environmental impact assessments are in place to ensure the sustainability and social responsibility of railway projects. The goal is to create a modern, self-sufficient, and sustainable railway sector that drives economic growth and regional integration.
The government intends to invest in technology by prioritizing AI integration into the development and manufacturing of railway equipment, with the aim to enhance Vietnam's technological capabilities and reduce dependence on imported machinery. The Ministry of Construction also plans to foster research and technology transfer agreements with international partners, such as Japan and China, to accelerate innovation in the railway industry.
