VinSpeed Seals $1.15 Billion Deal with German Rail Giant Siemens for Vietnam's High-Speed Rail Development

VinSpeed, a company founded by Mr. Pham Nhat Vuong, has signed a comprehensive contract worth up to EUR 1 billion (approximately USD 1.15 billion) with Germany's Siemens Mobility to develop railway lines in Vietnam. According to Reuters on September 22, Vingroup also confirmed the information and the value of the agreement. Under this deal, Siemens Mobility will supply trains while VinSpeed will be responsible for constructing the railway tracks. This agreement aims to develop high-speed rail routes connecting Hanoi to Quang Ninh and Ben Thanh to Can Gio. Last year, the two companies signed a framework agreement where Siemens Mobility committed to providing 10 Velaro Novo trainsets, along with communication and electrification systems for VinSpeed's two railway lines. The Velaro Novo is a wide-body, high-speed train system capable of reaching speeds of up to 350 km/h. Siemens Mobility, a division of the German conglomerate Siemens with over 175 years of experience in the rail industry, is a key supplier of core technologies for numerous high-speed rail systems globally, including in the United States, Russia, and China. The agreement also includes technology transfer and cooperation on maintenance during operation, which will contribute to the advancement of Vietnam's railway technology. VinSpeed, established in May last year, is part of the ecosystem of Vingroup, founded by billionaire Pham Nhat Vuong. The company has a registered capital of approximately VND 45,000 billion (around USD 1.8 billion) and operates in areas such as railway construction and the manufacturing of locomotives and carriages. Billionaire Pham Nhat Vuong holds a 51% stake in VinSpeed, with Vietnam Investment Group (VIG) holding 35%, Vingroup holding 10%, and Mr. Pham Nhat Quan Anh and Mr. Pham Nhat Minh Hoang, Mr. Vuong's two sons, owning 1% each. VinSpeed is the investor for high-speed rail projects including the Ben Thanh - Can Gio line (54 km) and the Hanoi - Ha Long line (120 km), with an estimated total investment of approximately VND 202,000 billion (around USD 8 billion). The company aims for commercial operation of these two lines by 2028. This significant investment underscores Vietnam's commitment to modernizing its infrastructure, a key component of its economic development strategy and its efforts to enhance regional connectivity and economic resilience.