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A wave of major railway investments, including the North-South high-speed railway, the Lao Cai-Hanoi-Hai Phong line and urban metro networks in Hanoi and Ho Chi Minh City, is opening a potentially lucrative market for Vietnam's railway equipment, materials and technology industries.
On November 11, the Vietnam Society of Construction Engineers (VSCE) organized Rail & Cons 2026, a railway industry and infrastructure week in Hanoi.
The event featured seminars on construction technology, digital transformation, workforce development and the localization of railway manufacturing.
Technology transfer seen as key to Vietnam's railway industry
Tran Thi Ngoc Thao, Deputy Director of DAECHANG Vietnam Joint Stock Company, said Vietnamese businesses have accumulated considerable experience in construction, mechanical engineering and infrastructure development.
However, domestic manufacturing capabilities still fall short of the demanding technical specifications, precision requirements and quality standards associated with advanced railway equipment.
Thao argued that forming joint ventures with foreign partners to acquire technology and manufacturing expertise is an essential path forward.
Cooperation with companies from countries with established railway industries could help Vietnamese manufacturers shorten the technology development process, strengthen production capabilities and gradually secure a greater role in railway supply chains.
"Vietnamese companies do not necessarily have to manufacture everything themselves from the outset. Domestic businesses can handle components that match their capabilities, while more technologically demanding products require the participation and support of foreign partners," she said.
According to Thao, joint ventures can do more than help companies meet project requirements. They also create opportunities to train workers, acquire technical knowledge and absorb advanced manufacturing technologies.
She emphasized that this process should be gradual, beginning with product supply before progressing toward more sophisticated manufacturing and broader technology transfers.
Some railway-related products, including bridge bearings, expansion joints and noise barriers, are already being manufactured in Vietnam through technology transfers from South Korean partners.
However, other components, such as railway sleepers and rail vibration dampers, still rely largely on imports.
Vietnamese manufacturers seek stronger competitive support
In the railway steel segment, Ta Tuan Duong, Deputy Director of Hoa Phat Dung Quat Rail and Special Steel Joint Stock Company, said producing railway rails involves far more than expanding conventional steel production lines.
It represents an entirely new manufacturing field requiring substantial investment in specialized technologies, equipment and quality control systems that meet more demanding standards.
Rail steel must satisfy strict technical requirements, with quality monitored throughout the production process, from raw materials and steel billets to processing and finishing.
Another major challenge is competition from established foreign manufacturers, particularly Chinese companies that benefit from extensive experience, large-scale production and lower operating costs.
"Chinese manufacturers are about 20 years ahead of us. They have already completed their initial investment phase and optimized many of their costs. That is why domestic businesses entering a new industry still need the support and cooperation of relevant government agencies," Duong said.
The Hoa Phat Dung Quat representative expressed hope that appropriate policies and support mechanisms would help Vietnamese manufacturers strengthen their competitiveness and participate in supplying materials for major railway projects.
From railway equipment and structural components to specialized rail steel, Vietnamese companies are gradually preparing to capitalize on the country's expanding railway market.
However, developing a domestic railway supply chain will require more than investment capital and manufacturing capacity.
The industry's long-term prospects will also depend on its ability to absorb advanced technologies, develop a skilled workforce and create opportunities for locally manufactured products to be used in major railway projects.
Vu Diep
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