South Korean industrial groups are stepping up efforts to secure a foothold in Southeast Asia’s fast-growing infrastructure market, where large-scale rail and transit projects are expected to draw global competition. Within that push, Hyundai Rotem, a unit of Hyundai Motor Group, has landed its first railway contract in Vietnam.
The company said it signed a roughly $330 million deal with THACO Group to supply driverless trainsets for Line 2 of the Ho Chi Minh City metro system, a project scheduled to open in 2030.
The contract marks Hyundai Rotem’s entry into Vietnam’s rail sector and could position the company for participation in the country’s planned north–south high-speed railway, a project estimated at $67 billion. That project is expected to attract bids from multiple international players, making early involvement a potential advantage.
The move also reflects a broader strategy by Seoul to pair industrial exports with government-backed diplomacy, as South Korean companies compete for infrastructure contracts across emerging markets.
Hyundai Rotem said it plans to work with more than 500 domestic suppliers and is exploring localized production in partnership with THACO, aligning with Vietnam’s push to develop its own rail manufacturing base.
For South Korea’s rail industry, the deal represents more than a single overseas contract. It signals an effort to secure long-term positioning in a region where large-scale transportation projects are set to expand over the coming decade.
