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Tuesday, June 18, 2024

Vietnam Railways Corporation to be restructured

By N. Tan

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HCMC – The Vietnam Railways Corporation (VNR) and its affiliated companies will focus on core business operations and have solutions to handle less effective projects in the coming time, reported the local media.

The Commission for the Management of State Capital at Enterprises (CMSC) has written to ministries and departments seeking their feedback on VNR’s restructuring plan for 2021-2025 before this commission submits the plan to the prime minister for approval.

The objectives of the VNR restructuring plan for 2021-2025 comprise changing the structure and scale of organization, enhancing the effectiveness of corporate management, effectively using corporate resources and improving productivity.

The VNR will focus on investing in main business lines and finding solutions to resolve loss-making projects.

With this objective, the VNR proposed not equitizing any company in the period. However, the corporation will restructure joint stock and affiliated companies to which the VNR is a member.

Under the proposed plan, the VNR will continue as a wholly State-owned, one-member limited company.

The State will hold from 65% of the charter capital of five joint stock companies and above 50% to under 65% of the charter capital of 20 joint stock companies.

There are 16 joint stock companies in which the State possesses less than 50% of charter capital.

The main business operations of the VNR include management, exploitation of the national railway infrastructure and control of national railway traffic.

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