VinSpeed, a member of Vietnam's Vingroup conglomerate, has teamed up with Siemens Mobility to build the first high-speed rail lines in the Southeast Asian country.

The agreement, signed on December 17, marks a turning point for Vietnam, bringing world-class European engineering to one of the world’s fastest-growing economies.

The heart of the deal is the deployment of the Velaro Novo, the latest and most advanced high-speed train platform in the Siemens AG portfolio. Designed for a top speed of 350 kilometres per hour, the Velaro Novo is built with a focus on sustainability and efficiency. It utilizes a lightweight "empty tube" design that cuts energy consumption by 30% while offering 10% more passenger capacity than previous models, according to Siemens Mobility.

These trains are specifically engineered to handle Vietnam’s diverse and challenging terrain, featuring advanced traction systems that outperform existing high-speed trains on steep gradients and through coastal regions with high humidity.

The project will initially focus on two key transport corridors that serve as economic lifelines. The first is a 121-kilometre line connecting the Vietnamese capital, Hanoi, to the northern province of Quang Ninh, home to the UNESCO World Heritage site of Ha Long Bay.

The second is a 54km route linking downtown Ho Chi Minh City’s Ben Thanh area to the coastal district of Can Gio. This southern route will serve as a model for rapid urban expansion. A groundbreaking ceremony for the project in Can Gio is scheduled for December 19.

Beyond the physical infrastructure, the partnership emphasizes long-term self-sufficiency for Vietnam. Siemens Mobility has committed to an extensive technology transfer programme aimed at localizing maintenance and operational capabilities within VinSpeed.

This includes the integration of ETCS Level 2 signalling and automatic train operation ( ATO ) technology, which enhances safety and allows for higher service frequency. By establishing a local maintenance hub, the partnership aims to ensure a highly reliable rail system and foster a new generation of local rail experts.

Siemens Mobility chief executive officer Michael Peter says the selection of the Velaro Novo underscores Vietnam’s ambition to lead in high-speed mobility. VinSpeed CEO Pham Thieu Hoa sees the project as a fundamental step in improving the quality of life for the Vietnamese people.

By slashing travel times and significantly reducing carbon emissions, the new rail networks are expected to spark a new era of eco-friendly tourism and industrial growth, seamlessly connecting Vietnam’s urban centres to its coastal and mountainous frontiers.