THACO and Hyundai Rotem on December 4 signed a Localization Agreement in rolling stock production for urban rail and high-speed trains in Vietnam at Hyundai Rotem's headquarters in Seoul, South Korea. This establishes a strategic partnership in the railway industry between two leading companies from South Korea and Vietnam.

The agreement was signed by Mr. Lee Yong-bae, CEO of Hyundai Rotem, and THACO Chairman Tran Ba Duong, in the context that Vietnam pursues an aggressive strategy to develop its railway industry and rail transportation network expansion.

THACO Chairman Tran Ba Duong and Hyundai Rotem CEO Lee Yong-bae sign the Localization Agreement

Under the agreement, Hyundai Rotem will transfer its most advanced railway technologies to THACO, enabling the Vietnamese company to domestically produce urban electric trains and high-speed trains under the THACO brand.

Hyundai Rotem will also partner with THACO to build an integrated system including rolling stock, signaling systems, and other E&M components, assisting the later gradually master the technology chain—from production to operations management, maintenance, and repairs—while optimizing costs and meeting international standards.

THACO will invest in a railway complex that includes a rolling stock manufacturing facility, a closed test track system, and a large-scale industrial-grade repair center at its 786-hectare Mechanical Engineering and Supporting Industry Park in Binh Co Ward, Ho Chi Minh City.

THACO and Hyundai Rotem leaders after signing the Localization Agreement

How the partnership has started

On June 19-20, 2025, THACO's leadership visited Hyundai Rotem, attended the railway exhibition at Bexco Center, and toured Hyundai Rotem's manufacturing facility.

THACO's leadership delegation visits Hyundai Rotem's manufacturing facility in Gyeongsangnam, South Korea

Later, on August 12, 2025, the two companies signed a memorandum of understanding at the Vietnam-Korea Economic Forum, witnessed by Vietnam’s General Secretary To Lam and high-level leaders from both countries.

Vietnamese General Secretary To Lam and South Korean Prime Minister Kim Min Seok witness the companies’ signing of the memorandum of understanding

From September 9-11, 2025, Hyundai Rotem leadership, led by CEO Lee Yong-bae visited Vietnam. During the visit, Hyundai Rotem and THACO met with Deputy Prime Minister Ho Duc Phoc, Deputy Minister of Industry and Trade Truong Thanh Hoai, and Deputy Minister of Finance Tran Quoc Phuong to present their cooperation program for high-speed rail and urban rail development.

The two companies also presented their railway technology and cooperation plans to Da Nang Party Secretary Luong Nguyen Minh Triet and Ho Chi Minh City People's Committee Chairman Nguyen Van Duoc.

Hyundai Rotem and THACO delegations meet with Vietnamese Deputy Prime Minister Ho Duc Phoc

On the morning of December 4, 2025, THACO executives inspected the Shinbundang Metro line, which uses GoA4 technology that enables trains to operate driverless. The train is controlled by smart technology operating 24/7 with near-perfect accuracy. The delegation also visited the DXLine Depot maintenance and repair center to study Hyundai Rotem’s maintenance models, technical procedures, and modern operation and maintenance solutions in South Korea.
THACO Chairman and leadership inspected the Shinbundang Metro operated by GoA4 automation technology and the DXLine Depot maintenance and repair center: