A train is departing from Sài Gòn Railway Station. Hà Nội and Sài Gon railways will be merged to form a VNĐ1.3 trillion Railway Transport Joint Stock Company. — VNA/VNS Photo Tiến Lực

The merger of two railway transport companies, Hà Nội and Sài Gòn, will be completed by the end of this year to form Railway Transport Joint Stock Company (VRT) with a charter capital of more than VNĐ1.3 trillion (US$51.2 million), according to the Việt Nam Railway Corporation (VNR)

This is a part of the VNR’s restructuring plan, under which the company had completed the mergers of five locomotive factory branches into three branches and three railway project management boards into one.

A representative from VNR said that the mergers helped improve the efficiency in the use of facilities, improve operation and incomes.

At the annual shareholders’ meetings of Hà Nội and Sài Gòn railways in April, the two companies agreed on the merger implementation plan, the business operation plan and the charter of VRT.

VRT will operate in 74 business lines, among which two major lines are passengers and goods railway transportation.

Hà Nội Railway reported a total revenue of nearly VNĐ2.5 trillion in 2023, an increase of 5.67 per cent against 2022 and a profit of more than VNĐ14 billion, up 143 per cent. The company earned a revenue of more than VNĐ710 billion in the first quarter of this year.

Sài Gòn Railway earned revenue of more than VNĐ1.7 trillion and a profit of VNĐ10.7 billion, rising by 8.4 per cent and 13.4 per cent against 2022, respectively. In the first quarter of this year, the company reported a revenue of VNĐ563 billion, up 13.4 per cent. — VNS