The Ministry of Construction is seeking feedback on the draft Decree regulating the assignment and ordering of tasks, and the criteria for selecting organizations and enterprises to provide services and goods for the railway industry.
Regarding the reality of the railway industry, the Ministry of Construction stated that there are currently 35 facilities in Vietnam operating in various railway-related fields, including production, maintenance, repair, and manufacturing of new carriage and locomotive parts, as well as installation of railway equipment and supplies.
Vietnam’s railway sector still relies heavily on imported equipment, supplies, and components. Image: VNR
However, these facilities only meet the requirements for the maintenance, repair, and assembly of carriages and locomotives with a track gauge of 1,000 mm and a maximum speed of 100 km/h. Additionally, most of the equipment, supplies, and components used in Vietnam’s railway sector are still imported from foreign countries.
“The railway industry in Vietnam remains fragmented, with outdated and piecemeal machinery and equipment,” the draft decree clearly states. “There has been a lack of investment in technology upgrades to meet the development demands of the railway sector in the upcoming period.”
The upcoming operation of several urban railway lines in various localities, according to the Ministry of Construction, will generate a substantial market for mechanical enterprises, carriage manufacturers, and industrial support equipment providers. This market will initially meet the domestic demand for equipment and component manufacturing and subsequently aim for exports within the global supply chain.
Notably, the Ministry of Construction estimates a domestic market demand for carriages worth approximately USD 16 billion and a market for information and signaling systems worth about USD 10 billion. These two markets will serve as the foundation for the development of the railway industry by enabling domestic enterprises to acquire, transfer technology, and eventually localize 30-40% of the carriage manufacturing process, thereby creating crucial momentum for the growth of domestic mechanical enterprises.
Vietnam’s domestic market demand for carriages and railway signaling systems is estimated at USD 26 billion. Image: VNR
This draft decree aims to create a large enough market to attract Vietnamese enterprises to invest, acquire technology transfers, and produce key industrial products in the railway sector.
Therefore, the draft decree proposes dividing the list of services and goods for the railway industry into three groups: Group I focuses on researching and establishing standards for railway industrial products and goods; Group II involves product development, assessment of standard compliance, technology transfer, and training; and Group III entails the manufacturing and assembly of core railway industrial products.
Regarding the conditions for placing orders, the supplier must be a Vietnamese organization or enterprise registered with relevant business lines, and the services and goods must have specific economic-technical norms or unit prices…
The Steel Industry in Q1/2025: Coated Steel Sheets Face Challenges Amid Rising Trade Protectionism
The Vietnamese steel industry witnessed a stark contrast in fortunes during the first quarter of 2025. While Hoa Phat and Vietnam Steel Corporation (VSC) continued their growth trajectory, coating and trading businesses faced significant challenges due to weak market demand and a rising tide of global trade protectionism.
Revolutionizing Urban Mobility: Honda Registers a New Scooter Model in Vietnam
According to data from the National Office of Intellectual Property, Honda Motor Company has filed for industrial design rights for a new scooter model in Vietnam.
The Honda Special Edition with Impressive Fuel Economy is Coming to Vietnam in June: Free Accessories Worth Millions and Attractive Pricing.
With its unique style and ABS brakes, this Honda model stands out from the crowd. Its distinctive design and advanced safety features make it a head-turner on the road. The sleek and modern aesthetic of this Honda is sure to catch the eye of anyone who sees it. Coupled with its advanced braking system, this car offers both style and substance, providing a safe and enjoyable driving experience.
The Tech Titan: HCM57 Technology, Forging Ahead in Vietnam’s Blockchain and AI Revolution
Present at the Super Vietnam 2025 Blockchain and AI Technology Week, HCM57 Technology – a fledgling tech startup hailing from Khanh Hoa – made a significant stride by unveiling a blockchain platform crafted by Vietnamese brains.
KBSV and PVCB Capital: A Strategic Alliance, Expanding the Financial Ecosystem
Recognizing the untapped potential in the field of investment and asset management, particularly in catering to the needs of the younger generation seeking financial freedom, KBSV and PVCB Capital have joined forces. Together, they aim to introduce exceptional services that comprehensively address the needs of investors.
