THACO (THG) Wins Da Nang Approval for $10.6B Urban Railway Feasibility Study

Overview

Da Nang City People’s Committee has formally approved THACO, via its subsidiary Đại Quang Minh Real Estate JSC, to conduct a feasibility study for a massive urban railway project. The proposed line would connect Da Nang Airport to Chu Lai Airport with a total estimated investment of VND 265,972 billion (~$10.6 billion USD), marking a significant potential infrastructure contract for the conglomerate.

Key Facts

• Da Nang City People’s Committee issued the approval document on April 22.
• The project is an urban railway line with a total length of over 103km, connecting Da Nang Airport’s T1 station to Chu Lai Airport.
• Total estimated investment for the entire line is approximately VND 265,972 billion.
• The project is divided into two phases: Phase 1 (~30.2km, 14 stations from Da Nang Airport to Hoi An) and Phase 2 (~73.6km, 10 stations from Hoi An to Chu Lai Airport).
• THACO Chairman Trần Bá Dương stated that, pending approvals, construction could commence in February 2027, with operations potentially starting in 2032.
• The company must bear all costs and risks if the proposal is not approved by authorities.
• The deadline for completing and submitting the study dossier is before October 2026.

What Happened

On April 22, the Da Nang City People’s Committee issued a document approving in principle the assignment to Đại Quang Minh Real Estate Joint Stock Company, a member of THACO Group, to conduct surveys, research, and prepare a pre-feasibility study or investment proposal for an urban railway line. According to the official filing, the city required the company to coordinate closely with relevant departments to build a proposal dossier ensuring compliance with regulations, clarifying the investment method, and ensuring the project’s feasibility and efficiency, especially in operation, maintenance, and upkeep after commissioning.

Previously, during a working session with Da Nang city leaders on the afternoon of April 20, THACO Chairman Trần Bá Dương stated that after completing approval procedures and investor selection, the project is expected to break ground in February 2027. If progress is favorable, Da Nang’s first urban railway line could be operational from 2032. The city also stipulated that the enterprise must bear all costs and risks if the proposal dossier is not approved by competent authorities.

Market Context

THACO (ticker: THG) is listed on the Ho Chi Minh City Stock Exchange (HOSE) and operates across automotive, agriculture, logistics, and real estate sectors. This news represents a potential major expansion into large-scale public infrastructure, a high-capital, long-term business line. The scale of the proposed project, at over VND 265,000 billion, is substantial relative to THACO’s current market capitalization and could significantly alter its revenue profile and asset base if it proceeds to the construction and operation phases.

Strategic Significance

The approval to study this project positions THACO as a leading contender for one of central Vietnam’s largest infrastructure developments. Success would diversify the conglomerate’s earnings away from its core automotive and real estate segments into long-term transport infrastructure, with potential for stable operational cash flows post-2032. It also aligns with national and regional priorities to improve connectivity between key economic zones and airports, potentially giving THACO a first-mover advantage in central Vietnam’s rail development.

What to Watch

• Submission and approval of the feasibility study dossier before the October 2026 deadline.
• Official investment approval and finalization of the investment method and financing structure for the VND 265,972 billion project.
• Confirmation of the construction start date, currently targeted for February 2027.
• Updates on Phase 1 and Phase 2 implementation timelines and potential partnerships or funding sources.
• Any regulatory or environmental approvals required from national authorities for the inter-provincial rail line.