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Railway proposed to lease land and houses, provide telecommunications infrastructure services

Việt NamViệt Nam16/08/2023

The State Capital Management Committee at Enterprises (CMSC) has just sent a document to Prime Minister Pham Minh Chinh and Deputy Prime Minister Le Minh Khai proposing approval of the restructuring project of Vietnam Railways Corporation (VNR) until 2025.

Accordingly, in addition to the current business lines, VNR is allowed to expand its main business lines such as leasing, operating, managing non-residential houses and land; accommodation, food and beverage and tourism services; providing telecommunications infrastructure services.

In addition, VNR is also based on production and business needs to add other business lines and occupations after being approved by the owner's representative.

In the period from now to 2025, the railway industry will not equitize the parent company - VNR and its member companies. However, VNR must restructure and divest from joint stock companies and affiliated companies with VNR's capital contribution. Only Saigon Commercial Hotel and Vietnam Railways Joint Stock Company and Sun Joint Stock Company will not divest.

Merge Hanoi and Saigon Railway Transport Joint Stock Companies into one railway transport joint stock company. Maintain the State capital holding ratio at Di An Railway Joint Stock Company at 86.85% and Gia Lam Railway Joint Stock Company at 77.37%.

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The State Capital Management Committee at Enterprises proposed restructuring Vietnam Railways Corporation.

For units under VNR, merge the existing Railway Project Management Board of Region 2 and Railway Project Management Board of Region 3 into the Railway Project Management Board of Region 1.

In addition, the Yen Vien Locomotive Enterprise branch will be merged into the Hanoi Locomotive Enterprise branch. The Da Nang Locomotive Enterprise branch will be merged into the Saigon Locomotive Enterprise branch. The Vinh Locomotive Enterprise branch will be maintained.

With the above restructuring, CMSC expects to improve the quality of corporate governance, effectively exploit corporate resources and increase labor productivity, ensuring sustainable development and gradual modernization of VNR.

In particular, ensuring enough jobs, improving workers' lives, bringing VNR out of the loss-making situation and gradually compensating for accumulated losses.


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