The Prime Minister has approved the restructuring of Vietnam Railways (VNR) to reduce the number of its subsidiaries. (Photo: baodautu.vn)The Prime Minister has approved the restructuring of Vietnam Railways (VNR) to reduce the number of its subsidiaries.According to Official Letter 303/TTg-DMDN issued by the Prime Minister on April 7 to approve this restructuring plan, branches of VNR's locomotive enterprise will reduce from five to three units.Meanwhile, the railway project management boards of Regions 1, 2, and 3 will carry out a merger to become the sole railway project management board with the role of representing VNR as the investor in projects for VNR. VNR will urgently complete the plan for the merger of Haraco and Saratrans to submit to the CMSC for approval. "This work is complicated, but VNR will try to complete the merger in the third quarter of 2022," Minh said.According to VNR, Haraco and Saratrans operate freight and passenger transport services on the same railway line, leading to unfair competition. This project was expected to be implemented in 2017-2020, with the goal of restructuring and divesting capital at its subsidiaries nationwide.Accordingly, the corporation will have a more reasonable production and business model focusing on three core industries of railway transport, railway infrastructure and railway mechanical engineering./.

Source: Viet Nam News April 19, 2022 03:47 UTC