Vietnam eyes development of large railway industrial complex

HANOI: Vietnam plans to develop a large railway industrial complex in Hanoi, which is seen as a foundational step toward building a domestic railway industry chain while opening up new space to attract private investment.

Under Prime Minister’s Decision 2404, a railway industrial complex covering about 250ha has been added to the master plan for a Hanoi railway hub.

The complex will be located in the capital city’s Chuyen My and Ung Hoa communes.

The 250ha complex represents a strategic preparation of industrial infrastructure for what is expected to be a surge in railway investment over the next few decades.

According to the CCTDI-Tedi consulting consortium, which drafted the plan, the scale of the complex was determined based on international experience and long-term market demand forecasts.

Under the adjusted national railway network plan, Vietnam is expected to invest in 17 railway lines by 2030, followed by an additional 19 lines in the post-2030 period.

Both Hanoi and Ho Chi Minh City are currently completing their urban railway networks, generating substantial demand for rolling stock, rail cars, components and maintenance services.

By contrast, domestic manufacturing capacity remains extremely limited.

Nationwide, only two factories – Gia Lam Railway Factory in Hanoi and Di An Railway Factory in Ho Chi Minh City – are engaged in the production of railway vehicles, while most other facilities focus primarily on maintenance and repairs.

Although the Gia Lam Railway Factory covers more than 20ha, its inner-city location leaves little room for expansion.

“A 250ha railway industrial complex is not merely a factory construction project. It is a strategic component in efforts to form a modern railway industry, reduce dependence on imports and gradually integrate more deeply into the regional value chain,” said Hoang Van Trieu from the Institute for Railway Technology Research and Development.

According to consultants’ proposals, the railway industrial complex will be organised into 17 functional zones, covering nearly the entire value chain.

These include areas for turnout production (about 20ha), locomotive assembly (15ha), car body manufacturing, freight car assembly, electric multiple unit trains, high-speed trains, interior manufacturing and air conditioning systems, as well as research and testing facilities and a workforce training centre. — Viet Nam News/ANN