THE deputy prime minister of Vietnam, Ho Duc Phoc, has approved the restructuring of Vietnam Railways over the period from 2026 to 2030, including the adoption of an operating model based on a group structure of parent company and subsidiaries.
The parent company, Vietnam National Railways Group, will be a single-member limited liability company with 100% state-owned charter capital. It will inherit all rights, obligations and responsibilities of Vietnam Railways Corporation, as well as existing agreements and contracts.
A decree setting out operational mechanisms and a specific financial management framework for the group is expected to be issued by June. Restructuring is intended to strengthen the capability of the national railway and is expected to result in revenue growth of more than 10% a year following completion.
Other objectives include working across the supply chain to drive the development of the domestic railway supply industry. There will also be a focus on obtaining access to major funding by attracting investors and strategic partners.
