MUNICH: Vietnam has awarded a major high-speed rail contract to German firm Siemens, signalling a strategic move in a region long dominated by China’s rail technology.
Siemens announced that its transport division, Siemens Mobility, will work alongside Vietnamese partner Vinspeed to build and equip the country’s high-speed rail network.
The contract includes the supply of Velaro Novo trains as well as rail components such as advanced control and safety technologies. Financial details of the deal were not made public.
The company said the Velaro Novo has demonstrated test speeds exceeding 400 kilometres per hour and offers significantly improved energy efficiency compared with previous models.
China has played a leading role in the development of high-speed rail across South-east Asia, initially building its capabilities through partnerships with European and Japanese manufacturers.