The Prime Minister approved the Project to restructure Vietnam Railway Corporation until 2025.

Revenue increased by an average of 7-8% per year

The objective of the Vietnam Railways Corporation restructuring plan for the period up to the end of 2025 is to continue innovating, flexibly adjusting the structure and scale of production organization, improving the quality of corporate governance, effectively exploiting the enterprise's resources, and increasing labor productivity, ensuring the sustainable development of the corporation and gradually modernizing it.

According to the restructuring project approved by the Prime Minister , the target for the 2021-2025 period is that the consolidated revenue of the entire corporation will increase by an average of 7%-8% annually compared to the previous year.

At the same time, strive to achieve and exceed the targets assigned by competent authorities, fulfill the obligation to pay the State budget; ensure enough jobs, improve the lives of workers, bring the corporation out of the loss-making situation and gradually compensate for accumulated losses.

Specific goals for the 2021-2025 period, the entire consolidated corporation: Output value and revenue increase by an average of 7%-8% annually compared to the previous year. Ensure employment and living conditions for employees. The parent company - Vietnam Railway Corporation's revenue increases by an average of 14% annually compared to the previous year.

Regarding the plan for restructuring the parent company and its member units until the end of 2025, the Project clearly states: Maintain the parent company as a limited liability company with 100% state-owned capital. Maintain the organizational model of the Railway Transport Operations Center; railway operating branches, locomotive factory branches, and affiliated public service units of the parent company.

Accordingly, there are 12 railway operation branches: Hanoi, Lao Cai, Ha Lao, Ha Lang, Ha Thai Hai, Ha Thanh, Nghe Tinh, Thua Thien - Hue, Nghia Binh, Phu Khanh, Saigon, and the Dong Dang station branch. There are 3 locomotive factory branches: Hanoi, Vinh, and Saigon; and 3 public service units: Railway College, Railway Medical Center, and the Railway Project Management Board Region 1.

Newly established Railway Research - Application and Development Center as a subsidiary of the parent company.

Regarding enterprises in which the parent company - Vietnam Railway Corporation maintains a holding ratio of over 50% of charter capital, including: Di An Railway Joint Stock Company, Gia Lam Railway Joint Stock Company.

The parent company also holds over 50% of the charter capital in 15 railway joint-stock companies: Yen Lao, Vinh Phu, Ha Lang, Ha Thai, Hai Hai, Ha Ninh, Thanh Hoa, Nghe Tinh, Quang Binh, Binh Tri Thien, Quang Nam - Da Nang, Nghia Binh, Phu Khanh, Thuan Hai, Saigon; 5 railway information and signaling joint-stock companies: Bac Giang, Hanoi, Vinh, Da Nang, Saigon and Dong Mo Stone Joint-Stock Company.

Merging Hanoi and Saigon Railway Joint Stock Companies in 2024

According to the Project, the merger of the two railway transport joint stock companies Hanoi and Saigon into one railway transport joint stock company will be completed in 2024 (Photo: illustration).

According to the plan, the parent company will divest its entire stake in 13 other joint-stock companies; maintaining a stake of 50% or less of the charter capital in: My Trang Stone Joint Stock Company, Railway Transport and Trade Joint Stock Company, Saigon Commercial Hotel Two-Member Limited Liability Company, and Sun - Vietnam Railway Joint Stock Company.

Regarding the transportation sector, the restructuring of Hanoi Railway Transport Joint Stock Company and Saigon Railway Transport Joint Stock Company will be carried out in accordance with the law and the directives in Prime Minister's document No. 303/2022. Accordingly, these two enterprises will be merged into a single railway transport joint stock company.

According to the Project, the implementation roadmap is to promote divestment at 13 joint stock companies; Complete the merger of Hanoi Railway Transport Joint Stock Company and Saigon Railway Transport Joint Stock Company, to be completed in 2024.

The Railway Research, Application and Development Center will be established after the Project on management, use and exploitation of national railway infrastructure assets according to Decree No. 46/2018 of the Government is approved.

Source: https://www.baogiaothong.vn/thu-tuong-phe-duyet-de-an-co-cau-lai-tct-duong-sat-vn-den-2025-192240627160123197.htm