Golden Opportunity for Supporting Industries

Prime Minister Pham Minh Chinh urged Hoa Phat Group to participate in the North-South High-Speed Railway project during his visit to Hoa Phat Dung Quat Steel JSC

Priority policy for Vietnamese companies

The Party and Government of Vietnam prioritize domestic enterprises in projects of all fields, from consulting and construction to material production and the railway industry. To support this, targeted policies and mechanisms have been introduced, offering incentives for local training institutions to collaborate with international partners or facilitate overseas specialization programs.

According to the proposed plan, the North-South High-Speed Railway Project, with an estimated cost of US$67.34 billion, spans 1,541 km across 20 provinces and cities, designed for speeds of up to 350 km/h. This is the biggest ever investment project, so it can be considered a revolution that opens up a golden opportunity for businesses to join the supply chain and motivates the development of supporting industries

This is regarded as a national key project that will produce huge impacts on some economic sectors of our country. According to international experience, to develop the railway industry, countries need to master core technologies, have strong supporting industries and have huge investment funds for technology and infrastructure as well. This is also an opportunity for Vietnamese industrial manufacturers to bolster their capacity.

The Department of Industry under the Ministry of Industry and Trade said: The high-speed railway project in Vietnam will become a key catalyst in the country's transport infrastructure development strategy. Designed to interconnect key economic regions, reduce travel time and expand transport capacity, this project not only helps modernize the transport system but also fosters the strong development of related industries. Industry plays a key role in providing materials, equipment and technology for this project. In particular, the construction and manufacturing industry is important to supply necessary materials for railway construction, including concrete, steel and infrastructure components such as bridges, culverts and tunnels. Therefore, Vietnamese companies must embrace this opportunity.

Domestic companies see opportunities in supplying materials, equipment, and technology for the North-South High-Speed Railway project

Seizing the opportunity together

The Hanoi Supporting Industry Business Association (HANSIBA) said that opportunities for supporting companies are enormous, especially when the production and supply of important materials such as concrete, steel and infrastructure components such as bridges, culverts and tunnels is taken into account, because they are indispensable for the North-South High-speed Railway Project. Besides, another tremendous opportunity is the transfer and mastery of railway technologies. Supporting companies must have the opportunity to receive advanced technologies from international partners, especially experienced developers of high-speed railways such as Japan, France, Germany, South Korea and China. HANSIBA and its members have been connecting with international partners to partner in the manufacturing, technology transfer and supply of products for related industrial projects such as aviation, aerospace and high-speed trains. The North-South High-speed Railway Project not only helps modernize the transport system but also fosters the strong development of related industries, including supporting industries that play a key role in providing materials, equipment and technology for this project.

In the first months of 2025, during his working program in Quang Ngai, Prime Minister Pham Minh Chinh visited and worked at Hoa Phat Dung Quat Iron and Steel Complex of Hoa Phat Group. He urged Hoa Phat Group to continue advancing research and production of high-quality steel, with a particular focus on steel rails for the North-South High-Speed Railway, cross-border rail connections with China, and urban rail systems. He emphasized the importance of aligning manufacturing processes with Party directives and State policies. The Party and Government will support Hoa Phat and other domestic enterprises in their development efforts.

Tran Dinh Long, Chairman of the Board of Directors of Hoa Phat Group, stated that, with its current capacity, the group is producing high-quality steel capable of replacing imported alternatives. The group is confident in its ability to research and manufacture rail steel and train axle steel per the Prime Minister’s directives, as well as high-quality steel for key national projects and for export. “In fulfilling the Prime Minister's directive to produce steel for the high-speed railway project, we pledge on our honor to meet four key commitments: first, ensuring superior quality; second, guaranteeing sufficient supply; third, adhering to project timelines; and fourth, offering prices lower than imported alternatives,” he added.

Long also suggested that the Government take measures to legitimately protect domestic manufacturers enterprises, adding: “We hope the State entrusts domestic companies with all tasks they are capable of handling. Only then can we nurture large businesses."