THACO's Dai Quang Minh completes FEED for $5.36B Thu Thiem-Long Thanh railway
This Aveluro analysis covers THA on UPCOM in the Automobiles & Parts sector. The classified event type is contract win, with positive sentiment and a deterministic market-impact score of 7.0/10. Aveluro classifies this story as a positive catalyst in the stock's news coverage. Source coverage came from CafeF - Bất động sản, classified as a primary/top-tier source.
Key Facts
Caveat: Not investment advice. · How Aveluro computed this: Aveluro combines extracted event facts, source credibility, ticker context, and market data. Scores are deterministic research signals, not recommendations.
Overview
THACO’s subsidiary Dai Quang Minh has completed the FEED study for the Thu Thiem-Long Thanh railway, a 46.44 km line with an estimated phase 1 investment of over VND 134,000 billion (about USD 5.36 billion). The project, expected to break ground around September 2, 2025, will connect Ho Chi Minh City to Long Thanh airport and is slated for completion by 2030.
Key Facts
- The Thu Thiem-Long Thanh railway is 46.44 km long, with about 11 km underground, 34.5 km elevated, and the rest transitional or at-grade.
- The line will have 18 stations (16 elevated, 2 underground), with 14 built in phase 1.
- Phase 1 investment is estimated at over VND 134,000 billion (about USD 5.36 billion), excluding land clearance costs.
- The project is proposed under a BT (build-transfer) contract, with the investor mobilizing capital and being paid via land funds and state budget.
- The railway will connect with six other rail lines, including metro Ben Thanh-Thu Thiem, metro line 6, metro line 10, and the North-South high-speed railway.
- Designed capacity is nearly 47,000 passengers per hour, with a maximum design speed of 120 km/h and operating speeds of 80-110 km/h.
- Construction is expected to be completed by 2030.
What Happened
According to a newly published feasibility study, including the FEED design prepared by Dai Quang Minh Real Estate Investment Corporation (a subsidiary of THACO Group led by billionaire Tran Ba Duong), the Thu Thiem-Long Thanh railway will span approximately 46.44 km. The project is one of the key works expected to be started by Ho Chi Minh City on the occasion of National Day (September 2) this year.
The route begins east of Thu Thiem station on the Ben Thanh-Thu Thiem line in Binh Trung ward, Ho Chi Minh City, and ends at Cam Duong depot in Xuan Duong commune, Dong Nai province. The line is designed to run along major transport corridors such as expressways and Ring Road 3, and will connect with six other rail lines, forming a mass transit network linked directly to Long Thanh airport.
The project is proposed under a BT contract, with the investor mobilizing capital and being reimbursed through land funds combined with state budget. The total phase 1 investment is preliminarily estimated at over VND 134,000 billion, excluding land clearance costs.
Market Context
THACO (ticker: THA) is listed on the UPCOM exchange. The company is primarily known as an automobile manufacturer, but has been diversifying into infrastructure and real estate through subsidiaries like Dai Quang Minh. This project marks a significant entry into large-scale transport infrastructure, potentially opening new revenue streams. The Vietnamese infrastructure sector has been active, with major projects like Long Thanh airport and metro lines driving demand for construction and engineering services. THACO’s involvement in this railway could enhance its profile as a diversified conglomerate, though the financial commitment and execution risks are substantial.
Strategic Significance
For long-term investors, this project represents THACO’s strategic pivot into high-value infrastructure, leveraging its engineering and construction capabilities. The BT contract structure, with payment via land funds, could provide THACO with valuable real estate assets in Ho Chi Minh City and Dong Nai, potentially boosting its property development arm. However, the scale of investment and the complexity of the project pose significant execution and financial risks. Success could position THACO as a key player in Vietnam’s transport infrastructure, while failure could strain its balance sheet. The project’s alignment with national infrastructure priorities, including the Long Thanh airport development, underscores its strategic importance.
What to Watch
- Groundbreaking ceremony expected around September 2, 2025, and any delays or changes in scope.
- Finalization of the BT contract terms, including the specific land funds to be allocated as payment.
- Progress on land clearance and resettlement, which could affect the timeline.
- THACO’s financial reports for Q3 and Q4 2025, to assess capital mobilization and impact on leverage.
- Updates on related infrastructure projects, such as the Long Thanh airport and connecting roads, which may affect the railway’s viability.