VinSpeed Secures €1 Billion Siemens Mobility Rail Deal
The Vietnamese rail firm will acquire high-speed locomotives for new lines connecting Hanoi to Ha Long and Ho Chi Minh City's Ben Thanh to Can Gio, with operations projected for 2028.
Rail Infrastructure Investment
Vietnamese rail company VinSpeed has finalised a €1 billion (US$1.15 billion) contract with German transportation giant Siemens Mobility for high-speed locomotives. This agreement, confirmed by Vingroup, builds on an existing partnership between the two entities.
The deal advances VinSpeed's plans to develop and operate a modern high-speed rail network across Vietnam, marking a significant investment in the country's transportation infrastructure.
Expanding High-Speed Network
The new locomotives will serve VinSpeed's planned high-speed routes, including a 120-kilometre line between Hanoi and Ha Long, and a 54-kilometre link from Ben Thanh in downtown Ho Chi Minh City to its outlying Can Gio area. These projects, which are expected to begin commercial operation in 2028, extend a framework agreement signed in 2025.
Under that earlier accord, Siemens Mobility committed to supplying and integrating crucial systems such as signalling, communications, and power supply, alongside facilitating technology transfers.
VinSpeed's Corporate Structure
VinSpeed, which was established in May 2025, holds charter capital of approximately VND45 trillion (US$1.73 billion). The company focuses on railroad construction and rolling stock manufacturing. Pham Nhat Vuong, Southeast Asia's wealthiest individual and chairman of Vingroup, holds a 51% majority stake in VinSpeed.
Other key shareholders include Vietnam Investment Group with 35%, Vingroup with 10%, and Vuong's sons, Pham Nhat Quan Anh and Pham Nhat Minh Hoang, each holding 1%.
Economic Connectivity Boost
The combined cost of the Hanoi–Ha Long and Ben Thanh–Can Gio lines is estimated at VND202 trillion. This substantial investment in high-speed rail will enhance connectivity between major urban centres and tourist destinations, supporting economic development.
The 2028 operational target for these routes will provide new logistics and passenger transport options, potentially reducing travel times and costs for businesses and individuals moving between these key Vietnamese regions.
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