The government has introduced a procurement mechanism, and a series of major companies are hoping for multi-billion dollar contracts from the railway sector.

Chính phủ ra cơ chế đặt hàng, loạt ông lớn kỳ vọng những hợp đồng tỉ USD từ đường sắt - Ảnh 1. — The high-speed rail project, with its order-based mechanism, is expected to open up opportunities for businesses to participate in investment projects - Illustration.

The government has just issued Decree 319. to implement specific mechanisms and policies, especially in the development of science , technology, research, and application. Technology transfer for key projects and important projects. national railway sector in accordance with resolutions of the National Assembly .

What are the specific criteria?

Accordingly, the new decree allows for the selection of Vietnamese organizations and businesses to be assigned tasks or commissioned to receive technology transfer for railway projects, but they must meet specific criteria.

It is a business established in Vietnam in accordance with the law, with functions and responsibilities linked to its business sector and compatible with the technology being transferred.

Businesses must have sufficient factory space and facilities to accommodate and install machinery, equipment, and production lines; and possess the financial resources or ability to raise capital.

This is complemented by a team of experts, technical staff, and skilled workers. The company is committed to ensuring the successful adoption, mastery, and operation of the technology.

In addition, there are other regulations such as the business not being in the process of dissolution, having its certificate revoked, or being insolvent.

This unit will have a technology transfer price that does not exceed the estimated cost of the technology transfer.

In fact, prior to the implementation of this policy, a number of major players in the industrial manufacturing, construction, and technology sectors had already put forward ambitious plans. These included prominent names such as Thaco, Hoa Phat, Viettel, Fecon, and Deo Ca, who proactively participated in a series of specific proposals.

What are the plans of the big players to participate in this multi-billion dollar project?

Most recently, Thaco, one of the companies proposing to participate in the North-South high-speed railway project, has taken strategic steps by signing a localization agreement with Hyundai Rotem.

Accordingly, Hyundai Rotem will transfer the most advanced technologies in the railway industry to Thaco for the domestic production of urban trams and high-speed trains under the Thaco brand.

Simultaneously, the two sides will build an integrated system from rolling stock to signaling and information systems, enabling Thaco to master the entire technology chain. This automotive giant plans to build a railway industrial complex including a rolling stock manufacturing area, a closed-loop test track system, and a modern large-scale repair center.

At the upcoming groundbreaking and inauguration ceremonies for major projects nationwide on December 19th, Hoa Phat Group will commence its railway steel production project. Prior to this, since the high-speed rail project was announced, Hoa Phat had declared its intention to invest nearly 14,000 billion VND in the project and has been taking concrete steps to implement it.

For example, starting in May 2025, this corporation signed a contract for a steel rail and special steel production line from SMS Group (Germany) - the most modern line with quality meeting European standards.

Hoa Phat also became the first enterprise in Southeast Asia to invest in the production of high-speed rail tracks and is expected to launch its first rail product in 2027.

Simultaneously, the company is preparing its workforce with a core team of managers, technology engineers, and operational personnel. These personnel have been and are being sent to Europe and other countries for intensive training and to work directly with SMS experts to master the technology.

Several other businesses are also promoting related projects, such as Fecon Company, which is researching several projects for Hanoi's urban railway line 2, specifically the section passing through Nam Thang Long - Noi Bai (Line 2.3); the Ho Chi Minh City urban railway project, the Ben Thanh - Thu Thiem section (Line 2); and is also ready to participate in the North-South high-speed railway project...

Simultaneously, Deo Ca Group also plans to increase its charter capital to expand investment in high-speed rail, metro, and airport projects. The company has been working with numerous partners, including those from Japan, China, and the United States, to research railway construction technology and commission personnel training.

Approval process

According to a government decree, in order to place an order, the railway project investor will send a request for selection criteria to the Ministry of Construction and the provincial People's Committee for these agencies to publicly announce.

From there, participating businesses will submit their registration documents, and after 30 days, the relevant agencies will establish an advisory council to evaluate whether the organizations and businesses meet the criteria as stipulated.

After a period of 20 days, the council will complete its evaluation, and within 15 days of providing its feedback, the Ministry of Construction and the Provincial People's Committee will decide on the selection of a Vietnamese organization or enterprise to be assigned the task or commissioned to receive technology transfer for the railway project.

What are the specific criteria?

What are the plans of the big players to participate in this multi-billion dollar project?

Approval process

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