On the afternoon of March 10, Deputy Prime Minister Ho Duc Phoc chaired a meeting to restructure Vietnam Railways Corporation (VNR) for the period 2026-2030, vision 2035 according to the group model orientation.
According to the Government Electronic Information Portal, the report of the Ministry of Finance clearly states that the restructuring objective is to transform VNR into an economic group model operating under the parent company group model (the State holds 100% of charter capital) - subsidiary company.
Accordingly, the Ministry of Finance proposes to establish the Parent Company - Vietnam National Railways Group as a parent company in the group of parent companies - subsidiaries... on the basis of transforming the VNR model, ensuring capacity according to requirements to participate in deploying and implementing assigned tasks.
The Ministry of Finance sets a target that in the period 2026-2030, with a vision to 2035, the value of output and revenue of VNR and Vietnam National Railways Group (after establishment) will increase by an average of 10%/year or more.
Restructuring content includes: Business lines; plans for financial, capital, and asset restructuring of enterprises; plans for personnel restructuring, management organizational structure; plans/listings for arrangement and restructuring of parent companies and member units; implementation roadmap.
After listening to the speeches and concluding the meeting, Deputy Prime Minister Ho Duc Phoc clearly stated that the Government assigned the development of a project to restructure VNR to meet the development requirements of the railway industry in the new phase with many projects and railway lines being implemented.
According to the Deputy Prime Minister, the practice of developing the domestic railway system and international experience shows that many countries with strong railway systems such as China, Germany, France, Russia, Japan, Korea... all organize businesses according to the group model to focus resources. Therefore, it is necessary to orient the upgrading of VNR into a Group.
Government leaders believe that the establishment of Vietnam National Railways Group is actually upgrading the existing model, because VNR is currently operating under the parent company - subsidiary company model.
Therefore, the Deputy Prime Minister emphasized the requirement that the transformation of VNR to a Group model must create real development momentum from within, avoiding the situation of "old wine in a new bottle".
According to the Deputy Prime Minister, if Vietnam National Railways Group is formed, it will create conditions to develop important fields such as manufacturing industry in the railway industry (making carriages, locomotives, equipment); developing logistics, managing and exploiting high-speed railway systems and other railway lines; effectively exploiting railway infrastructure, and strengthening links with the private sector to expand the industry development ecosystem.
