Vietnam Railways merges two Locomotive Factory branches.

In implementation of Resolution No. 18-NQ/TW of the 12th Central Committee of the Communist Party of Vietnam on streamlining the operational apparatus for efficiency and effectiveness, and Decision No. 498/QD-TTg dated March 27, 2026, of the Prime Minister approving the restructuring plan of Vietnam Railways Corporation for the period 2026-2030, with a vision to 2035, oriented towards a Group model, on June 1st in Hanoi, Vietnam Railways Corporation held a conference to implement decisions on organizational and personnel matters, and to carry out the merger of the Vinh Locomotive Enterprise Branch into the Hanoi Locomotive Enterprise Branch.

According to the plan, the merger of the Vinh Locomotive Factory Branch into the Hanoi Locomotive Factory Branch is divided into two phases: Phase 1 involves the handover and acceptance of all employees, assets, capital, and legal obligations in their current state; and Phase 2 involves reviewing and optimizing the organizational model, resolutely streamlining indirect and support labor according to the plan. The goal is to reduce labor costs and increase labor productivity.

In his remarks at the conference, Mr. Dang Sy Manh, Chairman of the Board of Directors and Secretary of the Party Committee of Vietnam Railways Corporation, stated that the previous organizational model, while having successfully fulfilled its historical mission, has now revealed limitations, including a high number of indirect laborers, overlapping and intertwined tasks, inefficient locomotive and train crew turnover, high inventory costs, scattered investments, and unnecessary internal competition among branches. Therefore, merging to form a new, stronger, and more focused Hanoi Locomotive Enterprise Branch is a necessary step to reduce transportation costs, improve service quality, and increase the competitiveness of the railway industry.

Chairman Dang Sy Manh requested the Board of Directors of the Hanoi Locomotive Factory Branch and all staff and workers to focus on effectively carrying out the task of stabilizing morale, ensuring absolute train safety, and at the same time innovating management, optimizing the efficiency of traction power utilization by improving the capacity of the workforce, increasing the turnover rate of long-range locomotives and centralizing repair and material handling.

He also expressed his confidence that, with the long-standing traditions of the two units, and with the unanimous agreement of the Party Committee, the leadership, and the employees, the Hanoi Locomotive Factory Branch after the merger will quickly overcome the transitional period, maximize its advantages, and become a leading unit in the production and business activities of the Corporation.

Source: https://vr.com.vn/tin-tuc--su-kien/dsvn-sap-nhap-2-chi-nhanh-xi-nghiep-dau-may.html