Vietnam has reached a major milestone in achieving technological independence in its railway infrastructure. The country has officially begun construction on its first facility to produce railway rails, including those needed for high-speed rail lines. This strategic move aims to reduce Vietnam’s rail sector’s import dependency and create future export potential.
Hoa Phat Group (HPG), one of Vietnam’s leading industrial groups, has signed a significant partnership with UK-based Primetals Technologies for this critical project. The agreement covers the equipment design and supply of the new rolling mill. The modern facility, which will have an annual production capacity of 500.000 tons, is planned to start delivering its first products in the third quarter of 2026 and be fully operational in the fourth quarter of the same year.
Vietnam Invests $556 Million in Local Rail Industry
According to information provided by Hoa Phat Group Chairman Tran Dinh Long, the total investment cost of this strategic project will reach 556 million USD. The company is implementing this large-scale initiative in full compliance with the Vietnamese government's national transportation strategy. HPG's goal is to contribute to the establishment of a stable and strong production chain in the national economy by taking an active role in all key infrastructure development projects across the country.
This important development parallels the critical visit of Chinese President Xi Jinping to Vietnam in early April, during which it was announced that construction of the 460-kilometer Lao Cai-Hanoi-Haiphong railway line, a major project aimed at modernizing Vietnam’s railway infrastructure, will begin in late 2025. This international cooperation provides an important basis for the future expansion of Vietnam’s railway network.
Vietnam's Railway Network Grows with International Collaboration
Vietnam’s efforts to develop its railway infrastructure are not limited to this project alone. Two additional cross-border railway lines with China, totaling 2030 kilometers, are planned to be built after 343. These projects are seen as important steps to strengthen regional connections and support economic growth. In December of last year, the Vietnamese parliament also approved a massive 1.541-kilometer high-speed railway project between the country’s two largest cities, Hanoi and Ho Chi Minh City. The project has the potential to completely reshape the country’s transportation infrastructure.
Hoa Phat Group’s new railway rail manufacturing facility will significantly strengthen Vietnam’s position in the railway sector in the Southeast Asian region. This initiative will contribute to the country’s economy by reducing import dependency and could also pave the way for Vietnam to become an export hub for railway rails in the future. This strategic investment will play a critical role in Vietnam’s goal of technological independence and will provide significant momentum for the modernization of the country’s railway infrastructure.
