Ministry proposes restructuring VNR into national railway group to spearhead North–South mega project

Ministry proposes restructuring VNR into national railway group to spearhead North–South mega project

The Ministry of Finance said that the overhaul is driven by new mandates assigned by the National Assembly, the Government, and the Prime Minister, including resolutions on investment policy for the North-South high-speed railway and Lào Cai–Hà Nội–Hải Phòng line.

A North-South railway line running through Khánh Hòa Province. The Ministry of Finance has proposed upgrading Vietnam Railways Corporation into the Vietnam National Railway Group. — VNA/VNS Photo Nguyễn Thành

The Ministry of Finance has proposed upgrading Vietnam Railways (VNR) Corporation into the Vietnam National Railway Group to advance the domestic railway industry with the focus on implementing the North-South high-speed railway mega project.

The proposal is part of a restructuring plan of VNR for 2026-30 period with a vision to 2050 recently submitted to the Government for consideration.

The plan aims to transform the current State-owned corporation into a group model under the name Vietnam National Railway Group with the parent company to operate as a single-member limited liability company with 100 per cent State ownership.

Under the plan, the restructuring would be carried out in phases with the establishment of specialised subsidiaries.

Specifically, by the end of 2027, a Vietnam Railway Industry Corporation is expected to be formed. By the end of 2029, a Vietnam Railway Electrification One-Member Limited Liability Company would be set up, and a Vietnam Railway Infrastructure Corporation, by the end of 2031.

The Ministry of Finance said that the overhaul was driven by new mandates assigned by the National Assembly, the Government, and the Prime Minister, including resolutions on investment policy for the North-South high-speed railway and Lào Cai–Hà Nội–Hải Phòng line, which requires urgent restructuring in capital raising, human resources, and organisational model.

Regarding financial resources, the ministry said it would develop plans to supplement the charter capital for the new group.

Notably, VNR is expected to receive additional public assets, including the Đà Lạt–Trại Mát railway line and several existing stations such as Hải Phòng, Thanh Hóa, Vinh, Huế, and Sài Gòn.

The Đà Lạt–Trại Mát line alone is estimated to be worth around VNĐ50 billion (US$2 million), which would bring the group’s projected charter capital to nearly VNĐ32.41 trillion in the 2026-30 period and more than VNĐ49.78 trillion in 2031-35. 

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