Official merger of 2 railway transport companies, eliminating internal competition

Vietnam Railway Corporation said that starting from November 1, 2024, the Railway Transport Joint Stock Company will officially come into operation with a charter capital of VND 1,303 billion.

Vietnam Railway Corporation said that starting from November 1, 2024, the Railway Transport Joint Stock Company will officially come into operation with a charter capital of VND 1,303 billion.

Shareholders of Hanoi Railway Transport Joint Stock Company and Saigon Transport Joint Stock Company will become shareholders of Railway Transport Joint Stock Company.

This is a legal entity established on the basis of merging Hanoi Railway Transport Joint Stock Company and Saigon Railway Transport Joint Stock Company according to the restructuring plan of enterprises and units under Vietnam Railway Corporation approved by the Prime Minister .

Regarding the organizational structure, the Railway Transport Company will consist of 8 departments, 17 affiliated branches and facilities in Ho Chi Minh City, including 4 train car branches, 2 railway attendant branches and 11 railway transport branches.

The headquarters of the Railway Transport Joint Stock Company is located at 130 Le Duan Street, Nguyen Du Ward, Hai Ba Trung District, Ho Chi Minh City. The company is chaired by Mr. Do Van Hoan; the executive board has 5 members with Mr. Dao Anh Tuan as General Director.

The official operation of the Railway Transport Joint Stock Company marks a major change in railway transport to improve the efficiency of railway transport production and business, reduce costs and reduce transportation costs.

Railway Transport Joint Stock Company also focuses on resources, finance, and means of transport to enhance competitiveness, improve corporate governance efficiency, and increase the ability to mobilize capital for railway transport development plans.

In the immediate future, the Company will strive to achieve and exceed the targets assigned by the General Meeting of Shareholders, fulfill its obligations to pay the State budget; gradually improve employment and living standards for employees; focus on improving competitiveness, and strive to gradually expand the railway transport market share in terms of both passengers and goods.

In addition to railway transport business, Railway Transport Joint Stock Company will focus on developing supporting services to increase product value, increase revenue and create more jobs for employees. The company will also strive to preserve capital and assets of the enterprise, ensure profits and profit margin on capital of the enterprise according to the Resolution of the General Meeting of Shareholders of the Company.

For the shareholders of Hanoi Railway Transport Joint Stock Company and Saigon Transport Joint Stock Company, who will become shareholders of Railway Transport Joint Stock Company, in addition to enjoying the increased benefits from the merger, shareholders will have the advantage of learning and in-depth evaluation of the operational efficiency of Railway Transport Joint Stock Company and the railway transport market.

Previously, in May 2017, in the Proposal to reorganize transport activities sent to the Ministry of Transport, Vietnam Railways Corporation admitted failure in converting two railway transport companies into joint stock companies.

After officially operating as a joint stock company in early January 2016, the business results of Hanoi Railway Transport Joint Stock Company and Saigon Railway Transport Joint Stock Company both plummeted in terms of output, revenue and profit.

The leader of Vietnam Railway Corporation said that Hanoi Railway Transport Joint Stock Company and Saigon Railway Transport Joint Stock Company operate both freight and passenger transport services on the same single railway line, leading to unhealthy competition between the two units.

At times, at the same station and business location, both units arranged labor, rented headquarters, warehouses, etc., increasing costs, dispersing resources, and low labor productivity.

Source: https://baodautu.vn/chinh-thuc-hop-nhat-2-cong-ty-van-tai-duong-sat-xoa-canh-canh-tranh-noi-bo-d228992.html