HCM City (VNA) – Amidst fiercecompetition with road and air transport, the railway sector has worked on improving its service quality in recent times to bring new experiences topassengers, and achieved excellent results.

Robust business results

The Hanoi Railway Transport Joint Stock Company (Haraco) reported a profit ofover 97 billion VND (USD) during January – September, a year-on-year surge of177.9%. Meanwhile, the Sai Gon Railway Transport Joint Stock Company gainedover 80 billion VND in profit, accounting for 210% of the figure recorded inthe same time last year.

This is an encouraging sign for the industry as train operators had hit rockbottom from 2019 to 2021. This was the railway sector's toughest-ever period as they ran the risk ofgrinding business to a halt due to mounting losses.

The sector has got back on track with the operation of five-star trains on the Hanoi– Ho Chi Minh City (Reunification Express), Sai Gon – Nha Trang, and Hanoi-Sa Palines. Most recently, a pair of luxury trains connecting Hanoi with Da Nangwent into service on October 20. With the carriage interiors andexteriors refreshed, and sleeper cabins designed with elegant style andequipped with new blankets, sheets, pillows and curtains, the trains arewidely expected to attract more passengers, especially foreign tourists.

General Director of the Vietnam Railway Hoang Gia Khanh described the Britishtravel guide Lonely Plant’s listing the Reunification Express among the world’smost incredible train journeys as an advantage that the railway sector needs to capitalize on.

In fact, train operators have channeled focus on upgrading services to luremore passengers to the line, he said.

The industry’s update of new technologies has offered passengers a new experience.With a quick scan of the provided QR codes, they are able to access a websiteand seek out 34 cities and provinces with train routes.

Passengers have been impressed with the launch of the executivelounge with private boarding entrance at Hanoi Railway Station and severallarge stations across the country.

Infrastructureupgrade needed

Despite robust signs, the railway is yet to compete with road and airtransport, said Deputy Minister of Transport Nguyen Danh Huy.

He suggested the sector make investment in infrastructure upgrade while waitingcapital for the high-speed railway, elaborating the move will help it maintainthe foothold as the key transport sector of the country.

He said the renovation of railway infrastructure lays a foundation for thesector to fine-tune its service quality in the transport of both passengers andgoods.

In the coming time, railway enterprises will enhance container freight trainservice and better engage in the global logistics chain, with transport costsadjusted to attract customers.

Additionally, it will provide international freight service at eight stations, namelyDong Dang (Lang Son), Lao Cai, Yen Vien (Hanoi), Kep (Bac Giang), Song Than(Binh Duong), Kim Lien (Da Nang), Dieu Binh (Binh Dinh), and Trang Bom (DongNai), where goods will undergo customs clearance procedures.

The Government has issuedResolution No 178/NQ-CP on an action plan for implementing the Politburo’sConclusion No 49-KL/TW on the development orientation of Vietnam's railwaytransport to 2045.

The action plan sets out tasks including perfectinginstitutions and policies, completing railway planning and related plans andmobilising resources to invest in rail transport. From 2025 to 2045, the Ministry of Planning and Investment isauthorised to prioritise the allocation of medium-term and annual State budgetsto invest in railway infrastructure, especially in the North-South high-speedrailway project, while the Ministry of Finance should give priority to increasing State budgetallocation for railway infrastructure maintenance.

From 2023 - 2045, the Ministry of Transport is assigned tocall on economic sectors to participate in railway business and transportsupport services.

In the conclusion issued in February on orientations forrailway transport development by 2030 and a vision to 2045, the Politburoidentified the North-South high-speed railway as the backbone railway of thecountry. The conclusion’s objective is to complete the approval of theinvestment policies of the North-South high-speed railway project and start theconstruction of priority sections in 2026-30, including the Hanoi - Vinhsection and the Ho Chi Minh City - Nha Trang section.

According to the feasibility report, the project willpass through 20 provinces. It will encompass of total length of 1,545 km, with a maximumoperating speed of about 320 km per hour. The total estimated investment of therapid transit project is about 58.71 billion USD.

Vietnam currently has 2,440km of railway running throughout the country./.