Ho Chi Minh City's Metro Moves Toward Local Production: MOU on Technology Transfer Signed for Line 2

On July 17, 2026, Ho Chi Minh City's urban railway management authority (MAUR) and GTEL, a domestic IT and telecom group, signed a memorandum of understanding (MOU) to bring core metro technology in-house. The first stage is Metro Line 2 (Ben Thanh-Tham Luong), now under construction beneath the city. It's still an "MOU stage," confirming a framework for cooperation rather than a contract, but it signals an intent to shift Vietnam's metros-long reliant on foreign manufacturers-toward being run by the country's own engineers and companies. For those living in or planning to visit Ho Chi Minh City, it's a read on how the transport of a few years out will grow.

What was announced

What MAUR and GTEL signed is a memorandum to jointly advance the metro's "system integration research," "technology acquisition," and "technology transfer." It covers the full set of core systems that run a line: signaling, communications, power supply, electrical and mechanical (E&M), supervisory control (SCADA), the operations control center (OCC), automatic fare collection (AFC), and platform screen doors (PSD). They also say they will cooperate on digitalizing operations management and maintenance, including AI, digital twins, and electronic ID (eID).

The two will first concentrate the technology on Line 2, then extend it to the lines planned for 2026–2030. Ultimately they aim to own an integrated operations control center overseeing Ho Chi Minh City's metro network, building the capacity to handle design, integration, operation, and maintenance with Vietnamese engineers and domestic firms, MAUR explains. This is still at the announcement and memorandum stage; specific orders and figures are yet to come.

Why "domestic localization" now

Ho Chi Minh City's metro has only just gotten going, with Line 1 (Ben Thanh-Suoi Tien) opening in December 2024. Line 1 was realized with Japanese yen loans and Japanese-company rolling stock and systems, and took many years from design to construction. The following Line 2 broke ground in January 2026, but its rolling stock is being manufactured by South Korea's Hyundai Rotem. Negotiating with a foreign maker every time a line is laid, and depending on outsiders for both technology and talent - without changing this structure somewhere, it will be hard to string together the planned lines one after another.

Ho Chi Minh City envisions an urban rail network of seven lines totaling some 355 km by 2035. Outsourcing all of that from scratch every time would run up endless time and cost, which is why the city chose the in-progress Line 2 as a "testbed for cultivating homegrown technology." This MOU is the first move toward that.

Lines 1 and 2—what's moving now

To keep it close to what residents and travelers actually feel, let's line up the two routes. Only Line 1 is running, and the reality that Line 2 is still years off becomes clear.

Line 2 is an urban line where the underground section makes up nearly 90%, and most stations are underground. The weight of this construction is also why it takes years from groundbreaking to opening. Published figures for total project cost vary by outlet, and the confirmed amount awaits the formal contract.

The localization target reaches as far as 'equipment you can see at the stations'

The technologies named in the memorandum aren't only the behind-the-scenes systems invisible to passengers. They also include passenger-facing equipment like AFC (automatic fare collection) at the gates and PSD (platform screen doors) separating the platform from the tracks. Meanwhile, the OCC (operations control center) that decides on delays and suspensions, and SCADA for monitoring and control, are the nerve center of running the line safely. The aim is to design and maintain both the front and the back domestically, rather than relying on visits from foreign manufacturers.

Another axis is how data is handled. MAUR says that by owning an integrated operations control center, it will keep management rights over operational and passenger-movement data on the Vietnamese side. Information on who rides and where it gets crowded becomes more valuable the more lines there are. The stance of not letting go of that control shows the metro is seen not merely as transport but as an urban data platform.

What's worth watching for residents and travelers

Honestly, this memorandum won't change tomorrow's commute. Only Line 1 is running, and Line 2 won't open until 2030 at the earliest. The memorandum is foundation-laying with an eye several years to a decade ahead. Still, there are three points worth keeping in mind.

• For now, Line 1 and buses are the way to get around: Along the Ben Thanh–Tham Luong corridor that Line 2 will run (northwest of downtown, toward Districts 3 and 10 and Tan Binh District), buses, taxis and ride-hailing apps remain the mainstay until it opens. It's still too early to choose where to live on the assumption of the metro.
• Construction impacts will show from now: Line 2 is mostly underground, and work tearing up roads in the city center is ramping up. Around Ben Thanh and along Cach Mang Thang Tam Street, plan for congestion and lane restrictions lasting several years, and give yourself extra travel time.
• Localization tends to make operations more stable as it progresses: if maintenance can be handled domestically, the risk of stoppages while waiting for parts and the cost of depending on foreign makers could fall. The longer you live here, the more this quiet change is likely to pay off.

Ho Chi Minh City's transport faces the same question—how to handle growing demand—not only with the metro but with parking and the airport. A move to answer downtown parking shortages with vertical towers (Stacking cars and motorbikes vertically—four towers to ease Ho Chi Minh City's parking crunch), and like Line 2's local production, it is a move to add to the city's transit.

Implications for Japan's rail business

From the standpoint of having supported Line 1 with Japanese technology and financing, the pattern—Korean players for Line 2's rolling stock, Vietnamese firms for localizing the systems—reflects how railway exports to Vietnam are shifting from "one-shot contracts" to "accompaniment with technology transfer and workforce development." Rather than a model that sells a finished product outright, a setup that partners with local firms to hand over design philosophy and maintenance know-how is more likely to be chosen in the Vietnam to come.

The capital, Hanoi, is on the same trajectory. Hanoi has broken ground on several metro lines at once and is rushing to overhaul public transit, right down to electrifying its city buses (Hanoi's city buses go electric—17 routes and 281 vehicles reshape how residents get around). The country's two major cities, north and south, have both begun aiming for "public transit they can run themselves." For Japanese companies, that opens room for long-term involvement—not just supplying rolling stock and systems, but training engineers and building maintenance frameworks.

Practical information on the metro you can use now (Line 1)

While waiting for Line 2, the line travelers and residents can actually ride is Line 1. Running from Ben Thanh in the city center to Suoi Tien in the east, it's handy as the only rail line that lets you move while avoiding traffic.

Summary

The memorandum between MAUR and GTEL is the first sign of switching Ho Chi Minh City's metro from 'buying from abroad' to 'growing it at home.' Still, the effects won't surface until around 2030 when Line 2 runs, and for now travel centers on Line 1 and buses. The realistic thing residents and travelers can do today is to factor construction congestion along the Line 2 route into their plans while making good use of the running Line 1. Years from now, the next line will rise from two floors underground on domestic technology—a day this memorandum quietly points toward.

Sources:SGGP English Edition／Vietnam+（VietnamPlus）／Vietnam Government Portal