Vietnam’s conglomerate Vingroup has signed a contract with France’s Alstom for 200 metro trains for Hanoi capital city, as the Vietnamese conglomerate builds out the capital city’s rail network.

In a statement on Tuesday, Vingroup said most of metro train will be assembled in Vietnam under a technology-transfer deal. Vingroup did not disclose other financial detail.

Vingroup signed through its property arm Vinhomes.

Under the agreement, Alstom will design and build up to 83 five-car Metropolis trainsets at its plant in Valenciennes, France. Alstom will also license the technology for Vingroup to assemble the remaining 117 in Vietnam using Alstom-supplied components.

Besdes, Alstom will provide engineering, tooling, and parts to build local manufacturing capability.

The driverless trains run at the highest grade of automation and use lightweight aluminium bodies and energy-recovering brakes, Alstom said.

Martin Sion, Alstom’s chief executive, said the deal paired the company’s expertise with Vingroup’s industrial strength and would help build local rail capabilities.

Nguyen Viet Quang, Vingroup’s vice chairman and CEO, said rail and transport infrastructure were priorities under the group’s infrastructure arm, combining international technology with its own execution.

The agreement adds to Vingroup’s push into transport infrastructure. The group, also known for property and electric vehicles, has also moved into high-speed rail, signing a turnkey contract with Germany’s Siemens Mobility for two lines in September.

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