Vietnam Railways restructuring plans approved

Deputy Prime Minister Ho Duc Phoc signed Decision No.498/QD-TTg dated March 27, approving the restructuring of VNR for 2026-2030, with a vision to 2035.

The goal is to leverage advantages and enhance competitiveness, becoming a key and crucial enterprise in the organisation, management, operation, and maintenance of railway lines; to lead, guide, and collaborate with other enterprises in the value chain within its core business to master core and strategic technologies.

This will create momentum for the development of the railway industry; to build and develop its brand to access large capital sources, attract investors, strategic partners, and high-quality workers, and participate deeply in regional and global value chains.

Photo: VNR

The plan targets the total output value and revenue after transformation to increase by an average of 10 per cent or higher per year.

The decision states that to develop and implement a plan for supplementing charter capital from the state budget, public assets resulting from the implementation of projects using state capital (considered part of state capital in the enterprise), and other legitimate sources of capital; ensuring consistency, efficiency, and capacity to carry out assigned tasks.

Accordingly, the parent company VNR is a limited liability company with all of its charter capital held by the state.

VNR inherits all the rights, obligations, and responsibilities of the VNR as stipulated in the Railway Law, the Enterprise Law, the Law on Management and Investment of State Capital in Enterprises, and other current legal documents, and the agreements, documents, agreements, and contracts signed with relevant parties as prescribed by law.

In June 2026, a decree will be issued stipulating the specific operational and financial management mechanisms for VNR.

The deputy PM requested the Ministry of Finance (MoF) to direct the Board of Members of VNR to implement the restructuring plan according to the group model. If necessary, due to objective conditions, they should preview and propose adjustments to this decision to comply with legal regulations, and promptly report to the prime minister for consideration and written directive.

The MoF, in coordination with the Ministry of Justice, the Ministry of Construction, the Ministry of Industry and Trade, and other relevant agencies, will develop and submit to the government in June for consideration and promulgation a decree stipulating the specific operational and financial management mechanisms for VNR, and direct the Board of Members of VNR to organise implementation within its authority when transforming the organisation and operation into an economic group.

The Board of Members of VNR is directed to develop a plan to supplement charter capital accompanied guiding documents, and submit it to the competent authority for consideration.

The Ministry of Construction, in coordination with the Ministry of Finance and relevant agencies, shall submit and resolve, within its authority and in accordance with regulations, matters concerning the management, use, and operation of national railway infrastructure assets.

The allocation of national railway infrastructure assets as part of the state's investment capital in enterprises, and shall, in coordination with the Ministry of Finance, the Ministry of Industry and Trade, and relevant agencies, review and evaluate the construction of a railway industrial complex plan of VNR, and provide guidance and make decisions within its authority or submit them to the competent authority for decision.

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