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Green light for rail revamp
Prime Minister Nguyen Tan Dung recently approved a project to transform the Viet Nam Railway Corporation into a parent company-subsidiary model.
The parent company, known as the Viet Nam Railway Corporation, will be a State-owned company based on the reorganisation of the existing Viet Nam Railway Corporation.
The transformation in operating model has been introduced to promote the development of the railway industry in the coming period.
The Viet Nam Railway Corp will be responsible for the whole company’s business activities and capital contributions to other companies, as well as taking responsibility for managing State investments in the parent company and investment capital in other companies.
The parent company will hold 100 per cent of the charter capital of 20 subsidiary companies concentrating on specific railway services, and 50 per cent of registered capital of the seven companies that will be soon equitised.
Capital for the new parent company has been inherited from the old Viet Nam Railway Corporation as of December 31, 2008.
According to the decision, the new parent company will do business in domestic and international railway transport, provide a transport agency and services, provide consultancy on designs, manufacturing, construction and repair of specific railway equipment and accessories as well as mechanical products and trade in diesel used for the railway sector.
It will have a management board, control board, general director, deputy general directors, chief accountant and other related agencies.
During 2003-08, the corporation earned VND30.38 trillion (US$1.68 billion) with an annual average growth of 10.25 per cent.
Up to 2020, the corporation wants to target 13 per cent of the domestic passenger travel and 14 per cent of freight goods.
During this time, the corporation will try its best to complete new routes such as Ha Noi to Dong Dang.
It will also invest in a North-South route which will be capable of speeds of up to 350km per hour.
vietnamnet, vietnamnews
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