Vietnam Railways: Transforming with a strategy of synchronous investment in infrastructure and equipment

(Chinhphu.vn) - In the period of 2020-2050, the Party Committee of Vietnam Railways Corporation has made efforts to achieve impressive growth in passenger transport. In terms of transport activities alone, the average annual growth rate of passenger output far exceeded expectations when the number of passengers boarding the train reached 140.3%.

At noon on April 30, 2025, the two Thong Nhat trains SE1 and SE4 departing from Hanoi station and Saigon station met at Da Nang station, recreating the historic moment of 1976.

The political report of the Party Executive Committee of Vietnam Railways Corporation (VNR) for the 12th tenure stated that in the first years of implementing the Resolution of the 12th Congress, the COVID-19 pandemic broke out with complicated developments, seriously and prolongedly affecting production and business activities. This was an objective, unavoidable cause, reducing the effectiveness of implementing the targets set out in the Congress.

Passenger transport grew 140%

In that situation, the Party Executive Committee of the Corporation agreed to adjust 3 production and business targets and 1 Party building target to ensure suitability and practicality. After the adjustment, production and business activities gradually recovered.

Most blocks have achieved and exceeded the resolution targets on output and revenue for the 2021-2025 period.

-Parent company - Vietnam Railways Corporation: increased by 37.3%, exceeding the target by 29.3%.

-Transportation sector: increased by 13.9%, exceeding 3.9%.

-Industrial and mechanical sector: strong recovery in 2024-2025, average growth rate of 17.5%, exceeding 3.5%.

- Railway infrastructure management and maintenance block: increased by 9.3%, exceeding 1.3%.

-The whole Corporation combined: average growth reached 11.9%, exceeding 3.9%.

-Average income of workers increased by 7.6%/year, exceeding 0.6%.

-The rate of passenger trains departing and arriving on time is approaching the resolution target.

-Railway traffic accidents decreased by 42.6% compared to the 2015-2020 period, exceeding the congress target by 37.6%.

-Passenger transport increased sharply, with passengers boarding 140.3%.

Product and service innovation

The Corporation has developed many new products and services, specific to each region, to meet market demand and stimulate tourism .

Investing in high-quality trains such as SE19/20, SE21/22, Hoa Phuong Do train, Hue - Da Nang heritage train, Sjourney train across Vietnam, La Reine Da Lat - Trai Mat train, special Thong Nhat train on April 30, 2025. Community car rental service (charter), high-class car The Vietage on the Da Nang - Quy Nhon route.

Exploiting package tours by train to Hue, Da Nang, Quang Binh. Restoring international passenger trains between Vietnam and China from May 25, 2025, after a 5-year suspension.

These innovations not only increase revenue but also expand the customer base, contributing to building the Vietnam Railways brand associated with heritage, culture and experience.

Development of freight transport and logistics

The Corporation actively coordinates with localities to implement the model of "bringing border gates deep into the interior", increasing cargo output, reducing intermediary costs, and promoting international trade. Some stations operate international intermodal transport, deploy North-South express container transport, and expand connections with China and ASEAN.

This is a strategic step to enhance the competitiveness of railway transport in the logistics chain.

Digital Transformation – Technology Innovation

Digital transformation is identified as an important driving force in transport management. The Corporation has deployed: Electronic mechanical system to monitor locomotives; Digitalization of freight transport management stages, improving management capacity and optimizing operations; Launching an electronic freight transport trading floor, providing transparency in information on ships, goods and fares.

In particular, the electronic ticketing system has been strongly upgraded: flexible ticket booking, multi-platform payment, online return, integrated promotions and train schedules, cooperation with major partners such as Vinpearl, Sun World, Momo, VNPay... Social networking channels such as Zalo, Facebook, YouTube and Google Maps are also integrated into the ticketing system, contributing to building the model of "smart railway - proactive customers".

Industrial and mechanical block exceeds output by 7%

From 2022 to now, the industrial and mechanical sector has clearly recovered. Large units such as Gia Lam Railway Joint Stock Company, Di An Railway, Hanoi and Saigon Wagon Enterprises... have accelerated production, completing many orders for building new, renovating and repairing wagons and locomotives.

In the period 2021-5/2025, the mechanical - industrial sector's output reached 121.2%, exceeding 7.2%. Revenue reached 117.5%, exceeding 3.5% compared to the target of the Resolution of the 12th Congress.

Vietnam Railways Corporation aims to increase the localization rate of materials and spare parts to 50% by 2030, gradually mastering the technology of manufacturing locomotives and carriages.

Increase the localization rate of railway industry to 50%

The Corporation has set the goal of continuing to develop according to the group model, gradually completing the restructuring project for the period 2025-2030, with a vision to 2035. At the same time, it has completed the management, exploitation and maintenance model of the national railway infrastructure in a unified, modern and effective direction.

Participate in new railway projects from the investment preparation stage to exploitation and operation.

The main targets include production and business growth of 8% in 2025, with double-digit growth in the following years. Preserving and developing state capital, ensuring income and stable employment for workers.

The total output value and revenue of the Corporation in the period 2026-2030 will increase by 10%/year or more. Labor productivity will increase by 5%/year, average income will increase by 7%/year or more.

Parent company - Vietnam Railway Corporation has output and revenue increasing by 10%/year; fulfilling budget obligations.

Transport business grows 10%/year, developing at least 2 new, high-quality transport products.

Regarding science - technology and digital transformation , Vietnam Railways Corporation strives for 100% of units to complete the goals of scientific development and innovation.

Achieve comprehensive digital transformation in 80% of production and business activities by 2030. Become an industry-leading enterprise in technology application.

Regarding industry and mechanics , strive to increase the localization rate of materials and spare parts to 50% by 2030. Master the technology of manufacturing locomotives and carriages. Prepare capacity to serve high-speed railways.

Phan Trang

Source: https://baochinhphu.vn/duong-sat-viet-nam-chuyen-minh-voi-chien-luoc-dau-tu-dong-bo-ha-tang-va-thiet-bi-102250806202037855.htm