THACO-Led Metro Line 2 EPC Adds China Railway Sixth Group as Subcontractor

Overview

Ho Chi Minh City’s Department of Construction has granted China Railway Sixth Group a construction operating licence to join the Ben Thanh - Tham Luong Metro Line 2 project as a subcontractor. The company will work under China Railway Group (CREC), the main contractor in an EPC consortium with Vietnam’s THACO. The approval formalises the subcontracting structure on the project’s largest package, valued at roughly VND 44,738 billion, and clarifies how execution risk is distributed on a line that is central to the city’s urban rail build-out.

Key Facts

• Metro Line 2 (Ben Thanh - Tham Luong) carries total investment of VND 55,179 billion and broke ground earlier this year.
• The EPC package held by the THACO - China Railway consortium is worth about VND 44,738 billion, the majority of total project investment.
• China Railway Sixth Group is licensed to build the stretch from station ST08 to ST11, excluding station ST09 and the ST10 diaphragm wall.
• Its scope also covers the bored tunnel from ST07 to ST10, open-cut sections, retaining walls, viaducts, the depot, a substation and track installation.
• A domestic subcontractor, Hoa Thinh Investment Development Company Limited, is also engaged on project items.
• The EPC contract has a 60-month execution period, with completion targeted for Q4 2030.
• The line spans about 11.3 km with 10 underground stations, one elevated station and the Tham Luong depot.

What Happened

The Department of Construction issued the operating licence after CREC notified its contract award and the Ho Chi Minh City Urban Railway Management Board (MAUR) gave written acceptance of the subcontractor, according to the department’s decision. China Railway Sixth Group previously served as EPC general contractor on the Cat Linh - Ha Dong railway in Ha Noi, giving it prior experience with Vietnamese urban rail execution.

The department instructed the contractors to comply fully with obligations under Government Decree 212/2026/ND-CP and to remain legally responsible for the accuracy of their filed documentation, with periodic reporting required. The article does not disclose the value of the subcontract itself, nor the commercial terms between CREC and China Railway Sixth Group.

Market Context

THACO is the listed Vietnamese partner in the EPC consortium and the primary domestic name attached to the package. The company is best known for automotive assembly and real estate, and its role as consortium member on a roughly USD 2.2 billion urban rail contract marks a material extension into large-scale infrastructure. No price-context block was provided with the source, so recent share price action and exchange listing details are not stated here. The award sits within a broader national push to accelerate urban rail in Ha Noi and Ho Chi Minh City, where progress has historically lagged approved timelines.

Strategic Significance

The subcontracting structure matters because it places tunnel boring, deep excavation and track systems with a contractor that has already delivered a Vietnamese metro line, while THACO retains the consortium position on the country’s largest single transit package. For long-term holders, the thesis rests on execution: Metro Line 2 runs mostly underground through dense districts, so diaphragm walls, deep pits and bored tunnels must follow strict technical sequencing to protect surrounding structures. Successful delivery would give THACO a reference project for future infrastructure bids; slippage would tie up consortium resources and invite scrutiny of local capacity on megaprojects.

What to Watch

• Monthly or quarterly progress reports from MAUR on Metro Line 2 construction milestones.
• Any disclosure of the subcontract value between CREC and China Railway Sixth Group.
• THACO corporate filings or shareholder updates on the EPC package’s revenue recognition schedule.
• Land clearance and utility relocation progress along the ST07-ST11 corridor, a common source of delay.
• Compliance reporting under Decree 212/2026/ND-CP and any Department of Construction inspections.