Ho Chi Minh City authorities have confirmed a Chinese contractor for metro line 2, awarding an engineering, procurement and construction contract worth nearly USD 1.73 billion (approximately VND 44.74 trillion).

The city’s Department of Construction has issued a decision granting a construction permit to a foreign contractor for the Ben Thanh-Tham Luong section of metro line 2.

Under the decision, a joint venture between Truong Hai Group Corporation (Thaco) and China Railway Group Limited will undertake design, construction, equipment supply and installation for the project.

The approval follows contractor selection results endorsed on March 16 by the Ho Chi Minh City Management Authority for Urban Railways, the project’s investor. In the joint venture, Thaco represents the Vietnamese entity, while China Railway Group Limited is the foreign partner.

The Department of Construction requires the contractor to comply with obligations for foreign contractors under Decree 175/2024/ND-CP and to ensure the accuracy of all submitted documentation.

At a groundbreaking ceremony on January 15, Thaco was introduced as the main contractor in the EPC consortium, though its foreign partner was not disclosed at the time.

China Railway Group Limited has previously operated in Vietnam, including through its subsidiary China Railway No 6 Group on the Cat Linh-Ha Dong urban railway project.

According to company information, the group has built more than two-thirds of China’s railway network and has projects or offices in more than 90 countries and territories.

The Ben Thanh-Tham Luong metro line has a total investment of VND 55.18 trillion (approximately USD 2.12 billion), with about 81 per cent allocated to the EPC contract covering design, construction, procurement and equipment installation.

The project adopts an EPC model similar to the Cat Linh-Ha Dong line, though it differs in financing, having shifted to a public investment model instead of relying on ODA loans.

The EPC contractor and implementation control consultant are expected to be selected in the first quarter through direct appointment. Construction is scheduled over 60 months, with completion targeted in the fourth quarter of 2030.