Restructuring Vietnam Railways Corporation towards a Group model.

Deputy Prime Minister Ho Duc Phoc signed Decision No. 498/QD-TTg dated March 27, 2026, approving the restructuring of Vietnam Railways Corporation for the period 2026-2030, with a vision to 2035, according to the Group model orientation.

The goal is to leverage advantages and enhance competitiveness, becoming a key and crucial enterprise in the organization, management, operation, exploitation, and maintenance of railway lines; to lead, guide, and collaborate with other enterprises in the value chain within its core business to master core and strategic technologies, creating momentum for the development of the railway industry; to build and develop its brand to access large capital sources, attract investors, strategic partners, and high-quality human resources, and participate deeply in regional and global value chains.

Strive to achieve and surpass the targets assigned by competent authorities, fulfill obligations to contribute to the State budget; increase labor productivity, ensure sufficient employment, and improve the living standards of workers;

Transform the operational model of Vietnam Railways Corporation from a parent-subsidiary group of Vietnam Railways Corporation to a parent-subsidiary group of Vietnam National Railways Group, ensuring the necessary capacity to participate in the implementation of assigned tasks;

For the period 2026-2030, with a vision to 2035: The total output value and revenue of the Vietnam Railway Corporation, Vietnam National Railway Group (after transformation) will increase by an average of 10% or more per year.

Plan for supplementing charter capital

Regarding the plan for supplementing charter capital, the Decision states: to develop and implement a plan for supplementing charter capital from the state budget, public assets resulting from the implementation of projects using state capital (considered part of state capital in the enterprise), and other legitimate sources of capital; ensuring consistency, efficiency, and capacity to carry out assigned tasks.

Conversion model

Transforming the operating model of Vietnam Railways Corporation from a parent-subsidiary group of Vietnam Railways Corporation to a parent-subsidiary group of Vietnam National Railways Group, specifically:

The parent company - Vietnam National Railways Corporation - is a limited liability company with 100% of its charter capital held by the State.

The Vietnam National Railway Corporation inherits all the rights, obligations, and responsibilities of the Vietnam Railway Corporation as stipulated in the Railway Law, the Enterprise Law, the Law on Management and Investment of State Capital in Enterprises, and other current legal documents; and the agreements, documents, agreements, and contracts signed with relevant parties as prescribed by law.

Implementation timeline: By 2026.

In June 2026, a Decree was issued stipulating the specific operational and financial management mechanisms for the Vietnam Railways Corporation.

The Deputy Prime Minister requested the Ministry of Finance to direct the Board of Members of Vietnam Railways Corporation and the Board of Members of Vietnam National Railway Group (after transformation) to implement the restructuring plan of Vietnam Railways Corporation for the period 2026-2030, with a vision to 2035, according to the Group model. They must fulfill their responsibilities and authority regarding the contents of this Decision and other contents not approved in this Decision; if necessary, due to objective conditions, they should proactively review and propose adjustments to this Decision to comply with legal regulations, and promptly report to the Prime Minister for consideration and written directive.

The Ministry of Finance, in coordination with the Ministry of Justice, the Ministry of Construction, the Ministry of Industry and Trade, and other relevant agencies, will develop and submit to the Government in June 2026 for consideration and promulgation a Decree stipulating the specific operational and financial management mechanisms for the Vietnam Railways Corporation; c Directing the Board of Members of Vietnam Railways Corporation to organize and implement the procedures within its authority when transforming the organization and operations into an economic group in accordance with regulations.

At the same time, the Board of Members of Vietnam Railways Corporation and the Board of Members of Vietnam National Railways Group (after conversion) are directed to develop a plan to supplement charter capital in accordance with Law No. 68/2025/QH15 and accompanying guiding documents, and submit it to the competent authority for consideration and decision...

The Ministry of Construction, in coordination with the Ministry of Finance and relevant agencies, shall submit and resolve, within its authority and in accordance with legal regulations, matters concerning the management, use, and exploitation of national railway infrastructure assets invested by the State; the allocation of national railway infrastructure assets as part of the State's investment capital in enterprises; and shall, in coordination with the Ministry of Finance, the Ministry of Industry and Trade, and relevant agencies, review and evaluate the "construction of a railway industrial complex" plan of the Vietnam Railway Corporation, and, according to its functions and duties, provide guidance and make decisions within its authority or submit them to the competent authority for decision as prescribed.

At the same time, preside over and coordinate the guidance of the Vietnam Railway Corporation and the Vietnam National Railway Group (after transformation) in implementing the regulations on assigning tasks, placing orders, and criteria for selecting organizations and enterprises assigned tasks and placed orders to supply railway industrial goods and services in accordance with the law; c The Ministry of Transport, in coordination with the Ministry of Education and Training, will research mechanisms for commissioning the Vietnam Railway Corporation and the Vietnam National Railway Group (after transformation) to provide training for human resources to meet the requirements of managing, operating, exploiting, and maintaining the railway system, and developing the railway industry...