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VIETNAM’S RAILWAY INDUSTRY BOOMING – A GOLDEN OPPORTUNITY FOR VIETNAMESE ENTERPRISES
Railway as a “strategic breakthrough” for socio-economic development
Decision No. 1769/QĐ-TTg by the Prime Minister approving the Railway Network Master Plan for the 2021 – 2030 period, with a vision to 2050, clearly states: railways are a specialized sector with a critical role in the national transport infrastructure system. They are identified as one of the three strategic breakthroughs prioritized for investment to foster socio-economic development, ensure national defense and security, adapt to climate change, and promote sustainable growth.
Under the Master Plan, the Government has set a target for 2030 to modernize existing railway lines, construct new key routes such as the North – South high-speed railway, and develop lines connecting seaports, industrial zones, and international border gates. By 2050, Vietnam aims to complete a modern, synchronized national railway network capable of meeting the growing demand for passenger and freight transport.
Alongside national railways, Vietnam is also prioritizing investment in urban railway systems in major cities such as Hanoi and Ho Chi Minh City.
Prioritizing domestic enterprises
Two notable resolutions passed by the National Assembly – Resolution No. 172/2024/QH15 on the investment policy for the North – South high-speed railway project (issued on November 30, 2024), and Resolution No. 188/2025/QH15 on special mechanisms for developing urban railway networks in Hanoi and Ho Chi Minh City (issued on February 19, 2025), clearly demonstrate the Government’s strong orientation toward maximizing priority for domestic enterprises.
Accordingly, Vietnamese companies will be prioritized to undertake railway projects across all areas. from consulting, construction, and installation to manufacturing materials and supplying industrial railway products. This policy not only opens significant opportunities for the domestic railway industry but also reflects a long-term vision of building an independent railway industry, gradually reducing reliance on imported technology and equipment.
However, these opportunities come with urgent capacity requirements. To join this “big game,” domestic enterprises must undergo a strong transformation by investing in research and development (R&D), applying international production standards, and enhancing technological capabilities.
In fact, several domestic mechanical transport enterprises have quickly seized the moment, implementing comprehensive innovation strategies, investing in modern production lines, boosting R&D activities, and proactively connecting with leading global corporations in the railway sector.
With a “dare to think, dare to do” spirit, Vietnamese companies have not only successfully localized many high-tech products such as bridge bearings, expansion joints, and noise barriers, reclaiming and dominating the domestic market, but have also exported them to major transportation projects in Southeast Asia.
34,500 kN bridge bearing manufactured by Vinh Hung Trading, Consulting and Construction JSC, exported and installed in the Malolos – Clark Urban Railway Project (Philippines).
In 2024, for the first time, a mechanical transport enterprise was awarded the “Vietnam National Brand” title by the Government. This program, assigned by the Prime Minister to the Ministry of Industry and Trade, involves a rigorous selection process from over 1,000 applications, based on three core criteria: product quality, innovation – creativity, and pioneering capability.
A Government representative presenting the “Vietnam National Brand” emblem to Mr. Vo Ta Luong – General Director of Vinh Hung Trading, Consulting and Construction JSC, recognizing the quality of Vinh Hung bridge bearings and expansion joints, as well as the company’s pioneering position in the domestic mechanical transport industry.
To participate more deeply in the railway supply chain, proactively establishing strategic partnerships with experienced and reputable international players is becoming a key direction. Recently, at the Asia Pacific Rail 2025 Conference & Exhibition – one of the region’s largest annual railway industry events, held in Bangkok (Thailand) – products bearing the “Vietnam National Brand,” such as bridge bearings, expansion joints, and particularly noise barrier technology solutions, were showcased, attracting significant attention from international contractors, design consultants, and leading global technology and solution providers. On the sidelines of the exhibition, numerous bilateral meetings were held between Vietnamese enterprises and potential partners, focusing on topics such as technology transfer and joint production, opening up practical cooperation opportunities for the future.
Vinh Hung was the sole Vietnamese representative to exhibit and introduce products and technological solutions in the railway sector at the Asia Pacific Rail 2025 event.
The railway sector is entering its most dynamic development stage in decades. Vietnam stands at a historic turning point to upgrade its transport system and build an autonomous railway industry. The challenges are real, but the opportunities have never been greater. Companies like Vinh Hung demonstrate that with thorough preparation, the right direction, and substantive investment, Vietnamese enterprises can confidently shape the future of Vietnam’s transportation industry.