Vietnam allows direct contracting for rail technology as firms position for big projects

Under Decree 319, issued last week, Vietnamese companies may be selected to receive railway technology for nationally important projects if they meet requirements on legal status, financial capacity, facilities, and technical personnel.

Companies must be committed to mastering and operating the transferred technology and must not be undergoing insolvency or dissolution procedures.

The cost of technology transfer must remain within approved budgets.

The policy applies to key railway projects designated by the National Assembly.

Under the decree, project owners will publicly announce selection criteria through the Ministry of Construction and provincial authorities.

An advisory council will evaluate applicants before final decisions are made.

The decree comes as several major Vietnamese conglomerates have announced plans to participate in large-scale rail projects.

VinSpeed High-Speed Rail Investment and Development JSC has said it is in talks with foreign partners on potential high-speed rail projects in Vietnam, including proposals linked to urban and interprovincial rail lines and the planned North–South high-speed railway.

Automaker Thaco has signed an agreement with South Korea’s Hyundai Rotem on technology transfer for the local production of metro and high-speed trains.

Steelmaker Hoa Phat Group has announced plans to invest nearly VND10 trillion (US$380 million) in rail steel production and expects to produce its first rail products by 2027.

Other construction firms are advancing related projects.

Fecon has said it is exploring multiple metro lines in Hanoi and Ho Chi Minh City, while Deo Ca Group plans to expand investment in high-speed rail, metro, and airport infrastructure.

Deo Ca is also working with foreign partners to study technology and train personnel.