Leaders of the Vietinbank and Vietnam Railway at the signing ceremony of co-operation agreement held in Ha Noi on June 9. — Photo Vietinbank

HA NOI (Biz Hub) — Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) and Vietnam Railway (VNR) have joined hands to develop their business operations over the next five years.

Under a memorandum of understanding, which was signed on June 9 and will be effective during the 2015-20 period, the two sides will boost co-operation in the areas of investment, payments, mobilisation of capital, syndicated loans and capital contribution. They will support each other in developing new businesses and exploiting the potential of domestic and foreign markets.

Vietinbank and VNR will focus on upgrading the available railway routes and stations including installing waste treatment facilities for carriages; upgrading Dong Dang Station in northern Lang Son Province; repairing Yen Vien Station's storage in Ha Noi; and investing in cargo carriages for the Hanoi Railway and Saigon Railway companies.

In the 2016-20 period, the VNR and domestic and foreign investors will continue investing in upgrading the railway routes and key stations, where stations in major cities will be prioritised.

In the railway engineering industry, the two sides will undertake projects related to building convenient modern carriages, producing parts and assembling train engines.

Speaking at the signing ceremony, Deputy Minister of Transport Nguyen Ngoc Dong said the cooperation between the two sides was in line with the Prime Minister's guidelines, which focused on restructuring public investment and transport and equitising State-owned enterprises. — VNS