The Railway Transport Joint Stock Company, formed by merging Vietnam’s major railway transport companies, will soon begin operations to modernize and streamline the rail industry. This was reported by the railway transport news portal Railway Supply.

Railway Transport Companies
Photo, source: www.vietnam.vn

The New Railway Transport Company’s Structure and Leadership

The newly formed Railway Transport Joint Stock Company represents a major shift for Vietnam’s railway transport companies. It was established through the merger of the Hanoi and Saigon Railway Transport Joint Stock Companies, a plan approved by the government to enhance operational efficiency and competitiveness.

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The Prime Minister’s office supported this restructuring under Official Dispatch No. 303/TTg-DMDN on April 7, 2022, later formalized under Decision No. 562/QD-TTg on June 26, 2024. This strategic move aims to bolster the country’s rail sector by 2025.

In terms of organization, the company will comprise eight departments, seventeen branches, and facilities across Ho Chi Minh City, including four carriage branches, two railway attendant branches, and eleven transport branches. Headquarters are located at 130 Le Duan Street, Hanoi, underscoring the centralization of operations and decision-making. The Board of Directors includes five members, led by Chairman Mr. Do Van Hoan, with Mr. Dao Anh Tuan as General Director. This unified leadership structure is anticipated to improve coordination and drive significant innovation across the organization.

Benefits and Future Goals for the Railway Sector

The establishment of the Railway Transport Joint Stock Company aims to reduce costs, enhance efficiency, and improve the competitiveness of Vietnam’s railway sector. The company’s focus will be on consolidating financial resources, assets, and operational systems to stay competitive and better serve market demands. It will also prioritize efficient governance, striving to optimize financial management to support future development plans. This unified structure aims to make the railway industry more agile and responsive to market needs.

In the immediate term, the company is committed to meeting the objectives set by the General Meeting of Shareholders, including its financial obligations to the State budget and a gradual improvement in employee living standards. The company also aims to expand its market share in both passenger and freight transport, ensuring it remains a top choice within Vietnam’s transportation network. By diversifying its revenue sources with complementary services, it aims to add value to its core offerings and create more jobs. This approach not only enhances service quality but also expands opportunities within the railway sector.

Moving forward, the Railway Transport Joint Stock Company will focus on preserving its assets, ensuring profitability, and maintaining a consistent return on investment. Responsible financial management will be central to supporting growth and competitiveness. Through strategic initiatives, the company plans to secure a lasting presence in the market, leveraging integrated resources to create a more cohesive and responsive service network. This commitment to stability aligns with the vision established by the company’s shareholder resolutions.

For shareholders from the former Hanoi and Saigon Railway Transport Joint Stock Companies, the merger provides enhanced benefits and new opportunities for insight. The consolidation of these companies not only boosts efficiency but also allows shareholders to assess the company’s performance more effectively. Shareholders gain a more comprehensive understanding of market trends and the evolving landscape of Vietnam’s railway industry, positioning them well to make informed decisions as the company strengthens its market position.

This significant merger and the creation of the Railway Transport Joint Stock Company embody progress and unity within Vietnam’s rail sector, establishing a strong foundation for growth. The initiative aligns with national transportation development goals, representing a strategic move toward a more efficient, competitive railway industry.

Photo, source: www.vietnam.vn

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