Accelerate the equitization of Vietnam Railways Corporation.

Through the Prime Minister's Task Force, Prime Minister Nguyen Xuan Phuc requested the Vietnam Railways Corporation to report and clarify six issues of national concern, emphasizing the need for genuine innovation and fundamental changes in this transportation sector.

On August 14th, the Prime Minister's Task Force, led by Minister and Head of the Government Office Mai Tien Dung, inspected the Vietnam Railways Corporation.

This is the 31st agency the Task Force has inspected and the 6th unit to be inspected regarding the implementation of solutions related to ensuring the GDP growth target for 2017.

In his opening remarks at the inspection, Minister and Head of the Government Office Mai Tien Dung, the head of the working group, stated that the inspection aimed to fully and comprehensively assess the implementation of tasks assigned by the Prime Minister and the Government to the Corporation, as well as the implementation of measures to boost production and business, and increase the volume of passenger and cargo transportation. It also aimed to identify difficulties and obstacles in the implementation of tasks in order to find solutions or make necessary adjustments.

The head of the working group stated that, with a history of 135 years of formation and development, 28,000 employees, and over 3,000 km of railway lines passing through 34 localities, the railway industry has made significant contributions to socio-economic development in recent years.

In the first six months of the year, the Corporation achieved many successes, such as revenue exceeding 3,500 billion VND, a 3.8% increase compared to the same period last year, although this only reached 45.1% of the annual plan. The Corporation implemented various production organization solutions, particularly by applying several new technologies.

From the beginning of 2016 to August 10th, the Government and the Prime Minister assigned the Corporation 57 tasks, of which 56 have been completed, and one task remains overdue.

Through the Task Force, the Prime Minister requested the Corporation to report on all solutions to ensure growth and implement the Prime Minister's Directive 24. Specifically, solutions to increase transport output and revenue to contribute to the overall growth target of the service sector in 2017 of 7.19% and a tourist increase of over 30%?

Photo: VGP/Nhat Bac.

At the same time, through the Task Force, the Prime Minister requested the Corporation to report and clarify six issues of national concern, with the requirement for genuine innovation and fundamental change in this transportation sector.

Firstly, regarding the business performance and management: Sales revenue and service provision in 2016 reached over 6,500 billion VND, however, this was a 12% decrease compared to 2015.

“Currently, it can be said that for passengers, the railway is less attractive and less competitive compared to other sectors, in terms of quality, safety, and market share, which has been declining over the years. We have invested in infrastructure from North to South, but it is very old, and issues such as railway gauge, infrastructure quality, and rolling stock have received little attention. Investment in loading and unloading facilities, ports, and connecting railways with airports, seaports, and industrial zones has also received little attention,” the head of the working group stated.

The Prime Minister requested the Corporation to calculate ways to enhance its competitiveness. “In other words, it seems that the mentality of state subsidies still lingers in the market economy. The Prime Minister asked you to think more about this,” Minister and Head of the Office Mai Tien Dung conveyed the Prime Minister's opinion.

Secondly, the Prime Minister emphasized the importance of railway safety, labor quality, and the sense of responsibility of workers. He particularly stressed public concern about railway accidents, noting that while there has been a decrease compared to 2016, recent incidents involving train safety, damage to carriages and infrastructure, and loss of life have been particularly concerning. The Minister cited specific cases such as the accident at Yen Vien station in Hanoi and the incident involving the simultaneous operation of two trains at Suoi Van station (Binh Thuan), which, while not causing major damage, highlighted the lack of awareness and responsibility among officials and workers.

The third issue is attracting investors to participate in the development and socialized implementation of infrastructure services.

“Before the meeting, the Chairman of the Corporation, Mr. Vu Anh Minh, mentioned several very encouraging issues, namely that they are calling for investors to invest in warehouses, loading and unloading equipment, and connections between industrial zones, airports, and seaports… If this can be achieved, it would be very good. Container transport by rail is much cheaper than by road, and if there are connections from the railway to industrial zones and seaports, many investors would be willing to invest. Besides state investment, the industry needs to pay close attention to this, otherwise it will be impossible to compete,” the head of the working group stated, emphasizing the need for technological innovation in operations, as there is still too much manual reliance.

Fourth, attention must be paid to boosting the exploitation of existing infrastructure. Given the difficulties in securing investment capital, solutions are needed to maintain safety and focus on maximizing the capacity of each specific route.

On Thursday, the Prime Minister reminded the Corporation about the organization, management, and implementation of projects to upgrade and renovate level crossings, especially the coordination with local authorities in constructing access roads.

Sixth is the issue of equitization. The task force stated that the Corporation started quite early, but divestment has not yet met expectations, although this may be due to attractiveness or market conditions, but it must be accelerated.

Also at the meeting, the Head of the Task Force noted two tasks related to the Ministry of Transport. Specifically, it is necessary to review and report on the investment in upgrading railway infrastructure using 7,000 billion VND from government bonds. Secondly, at the Government meeting in March, based on the recommendations of the Task Force, the Prime Minister assigned the Ministry of Transport to urgently review level crossings and pedestrian crossings to promptly address accident black spots and potential accident locations, and to organize timely warning and monitoring. The Ministry needs to report back on the results.

"During the working process, if the Corporation needs the intervention of ministries or the Government Office to resolve issues, the Task Force will compile reports, listen to the difficulties, and find solutions," Minister Mai Tien Dung emphasized.

According to the government newspaper.