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Vietnam Railways undergoes restructuring

A number of subsidiaries of the Vietnam Railways Corporation are being equitised, including two major companies, Hanoi Railway Passenger Transport and Saigon Railway Passenger Transport, the English language news website dtinews.vn reported.
A number of subsidiaries of the Vietnam Railways Corporationare being equitised, including two major companies, Hanoi RailwayPassenger Transport and Saigon Railway Passenger Transport, the Englishlanguage news website dtinews.vn reported.

The two companies willbe renamed Hanoi Railway Transport Company and Saigon Railway TransportCompany. Restructuring of these two companies is expected to becomplete in 2015.

Di An Railway Company, Gia Lam Railway Companyand about 20 others that specialise in railway infrastructuremaintenance will also be equitised by the end of 2015. All the affectedfirms will go into operations on January 1, 2016.

Vietnam RailwayVocational College has a target of being financially independent by2020, while the Railway Medical Centre will be independent by 2016.

Executivesat Vietnam Railways Corporation have ordered further research on theprocess and proposed reducing stakes in their consulting andconstruction companies to less than 30 percent.

The VietnamRailways Corporation will submit an organisation, management andoperational plan for the national railway system to the Prime Ministerand the Ministry of Transport in July.

Currently, railwaytransport accounts for only 0.5 percent of the total passenger transportmarket and 1 percent of total freight transport.

The sector plans to raise this to a target of 13 percent of passenger transport and 14 percent of freight transport by 2020.-VNA

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