VIETNAM National Railways (VNR) subsidiaries Hanoi Railways and Saigon Railways are to merge later this year.
The newly formed Vietnam Railway Transport (VRT), a joint stock company, will have charter capital of more than Dong 1.3 trillion ($US 51.2m). It will operate passenger and freight trains on the Vietnam’s principal north-south main line.
The move is part of a wider restructuring of VNR, that has seen five locomotive plants concentrated into three and three project management boards merged into one. VNR has told local media that the changes will help the railway to improve operational efficiency, maximise the use of existing facilities and increase income.
Hanoi Railways reported total revenue of nearly Dong 2.5 trillion in 2023, an increase of 5.67% compared with 2022 and profit of more than Dong 14bn, up 143%. Saigon Railways recorded total revenue of more than Dong 1.7 trillion and profit of Dong 10.7bn, year-on-year increases of 8.4% and 13.4% respectively.
