HCMC — Vietnam Railways (VNR) has proposed building a VND17.5-trillion railway industry complex in Hanoi City to supply equipment for new railway lines, urban rail systems, and high-speed trains, aiming to increase domestic production and reduce reliance on imports, reported local media.

The state-run operator submitted the plan to the Ministry of Construction, seeking approval for public funding and designation as the project investor. The facility would be located on 250 hectares in Chuyen My and Ung Hoa communes in Hanoi. VNR said it would also partner with domestic and foreign firms to create a railway manufacturing ecosystem and supply chain. The project would assemble and gradually localize rolling stock for national and urban railways, produce hardware and software components for communications, signaling, and power systems, and manufacture parts for high-speed rail. It would also handle technology transfers, heavy maintenance, and production of locomotives and carriages compatible with speeds under 200 kilometers per hour. VNR estimated construction in two phases, with VND7.4 trillion allocated for phase one and VND10.1 trillion for phase two. If approved, preparation and legal procedures would take up to one year, followed by design, bidding, infrastructure works, equipment installation, and commissioning over about three years. The company projects revenue of VND228 trillion from 2030 to 2050, with an expected payback period of 16 years. Vietnam’s railway network plan for 2021-2030, with a vision to 2050, calls for 25 lines totaling 6,354 kilometers, including upgrades to existing routes and construction of new ones such as the Lao Cai–Hanoi–Haiphong line and the North-South high-speed railway. Currently, VNR can only manufacture rail vehicles for repair and maintenance purposes, with partial localization of some components. The proposed complex aims to expand capabilities to meet future demand, which by 2050 is estimated at 3,418 locomotives and carriages, costing about VND264 trillion. VNR said once operational, the facility would begin producing for existing lines and assemble vehicles for urban rail projects between 2029 and 2032.