Revenue increased by an average of 7-8% per year
The objective of the Project to restructure Vietnam Railways Corporation until the end of 2025 is to continue to innovate, flexibly adjust the structure and scale of production organization, improve the quality of corporate governance, effectively exploit the resources of the enterprise and improve labor productivity, ensuring the sustainable development of the corporation and step by step modernization.
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 situation and gradually compensate for accumulated losses.
Specific goals for the period 2021-2025, 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 to reorganize and restructure the parent company and its member units by the end of 2025, the Project clearly states: Maintain the parent company as a single-member limited liability company with 100% of the charter capital held by the State. Maintain the organizational model of the Railway Transport Control Center; railway operation branches, locomotive enterprise branches and public service units under the parent company.
Accordingly, there are 12 Railway Exploitation branches: Hanoi, Lao Cai, Ha Lao, Ha Lang, Ha Thai Hai, Ha Thanh, Nghe Tinh, Thua Thien - Hue, Nghia Binh, Phu Khanh, Saigon and Dong Dang Station Branch. There are 3 locomotive enterprise branches: Hanoi, Vinh, Saigon; There are 3 public service units: Railway College, Railway Medical Center, 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 Signal Information Joint Stock Companies: Bac Giang, Hanoi, Vinh, Da Nang, Saigon and Dong Mo Da Joint Stock Company.
Merging 2 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 Project, the parent company will divest all of its capital contributions in 13 other joint stock companies; maintain the capital contribution ratio of 50% or less of charter capital in: My Trang Stone Joint Stock Company, Railway Transport and Trade Joint Stock Company, Saigon Commercial Hotel and Vietnam Railways Joint Stock Company.
Regarding the transport sector, the arrangement of Hanoi Railway Transport Joint Stock Company and Saigon Railway Transport Joint Stock Company will be carried out in accordance with the provisions of law and instructions in Official Dispatch No. 303/2022 of the Prime Minister. Accordingly, the two enterprises will be merged into a 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.
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