Vietnam Railway to equitise its subsidiaries this year

Wednesday, Jul 08, 2015 17:27

 The railway sector expects to renovate trains, stations, bridges, roads and signal information systems with financial support from various economic sector. — Photo

HA NOI (Biz Hub) — More than 20 Vietnam railway companies will be equitised this year, marking the key provision of the corporation's efforts to complete its comprehensive restructuring plan.

The equitisation is aimed at creating a self-motivating business model and mobilise financial resources to update the sector.

The companies, including Hanoi and Saigon railways, railway infrastructure management companies and Di An and Gia Lam train companies, will officially operate under the joint stock model beginning January 1, 2016.

According to the restructuring, Di An Train Company will be the first to be equitised on September 30. Meanwhile, the value of Hanoi and Saigon railways and Gia Lam Train Company will be set in March, while the remaining companies' values will be determined in December.

The domestic railway has operated for more than 100 years, though it is struggling due to out of date technology and services, in comparison with other industries in Viet Nam. Officials note that its great advantage is its nearly 40,000 workers.

In a recent talk show on television, Chairman of the Vietnam Railway Corporation Tran Ngoc Thanh said the renovation of trains, stations, bridges, roads and signal information systems should be carried out at the same time.

"We have determined that the equitisation will seek to become a transparently-operated business and an equal environment for the various economic sectors that take part in this transport," said Thanh. — VNS

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