The railway company proposed leasing land and buildings for telecommunications infrastructure services.
The State Capital Management Committee proposed restructuring the Vietnam Railways Corporation, expanding its business activities to include leasing and managing non-residential properties and land; providing telecommunications infrastructure services, etc.
The Committee for State Capital Management at Enterprises (CMSC) has sent a document to Prime Minister Pham Minh Chinh and Deputy Prime Minister Le Minh Khai proposing the approval of a restructuring plan for Vietnam Railways Corporation (VNR) by 2025.
Accordingly, in addition to its current business activities, VNR is permitted to expand its core business to include leasing, operating, and managing non-residential properties; accommodation, food and beverage, and tourism services; and providing telecommunications infrastructure services.
In addition, VNR may also add other business lines and activities based on its production and business needs, after obtaining approval from the owner's representative.
Between now and 2025, the railway sector will not privatize the parent company - VNR and its member companies. However, VNR must restructure and divest its stake in joint-stock companies and affiliated companies. The Saigon Commercial Hotel Company Limited and the Sun - Vietnam Railway Joint Stock Company will not undergo divestment.
Merge the Hanoi and Saigon railway transport joint-stock companies into a single railway transport joint-stock company. Maintain the state's ownership stake in Di An Railway Joint-Stock Company at 86.85% and in Gia Lam Railway Joint-Stock Company at 77.37%.
For units under VNR, the Project Management Board for Railway Area 2 and the Project Management Board for Railway Area 3 will be merged in their current state into the Project Management Board for Railway Area 1.
In addition, the Yen Vien Locomotive Factory branch was merged into the Hanoi Locomotive Factory branch in its entirety. The Da Nang Locomotive Factory branch was merged into the Saigon Locomotive Factory branch in its entirety. The Vinh Locomotive Factory branch was maintained in its entirety.
With this restructuring, CMSC expects to improve the quality of corporate governance, effectively utilize the company's resources, and increase labor productivity, ensuring the sustainable development and gradual modernization of VNR.
In particular, ensuring sufficient employment, improving the living standards of workers, and helping VNR escape its loss-making situation while gradually offsetting accumulated losses are crucial.
