The State-owned Vietnam Railway Corporation (VRC) has said it will divest all its capital from 10 joint-stock companies this year and next to focus on railway transport as its core business, and sharply reduce its stakes in several others, the Saigon Times Daily reported on August 13.
The divestment decision was just made by the chairman of the company’s board of members in Resolution No. 16-14/NQ-HDTV.
Under the resolution, Vietnam Railway will divest all investments from My Trang Stone JSC, Hanoi Investment and Construction JSC, Hanoi Investment and Construction Consulting JSC No. 1, Vinh Nguyen Investment Construction Trading Development JSC, and Vietnam Railway Signal Telecommunication JSC.
In addition, it will also sell all holdings in Hanoi Rail Tour, Da Nang Construction JSC, Railway Construction and Engineering JSC, Construction No.2 JSC and Railway Infrastructure Development JSC.
Apart from all-out divestment from these 10 enterprises, VRC will maintain less than 30 percent of chartered capital at three other companies namely Investment and Construction JSC No. 3, Railway Construction Corporation JSC and Construction JSC No.6. It will also reduce its stake to less than 20 percent at Transport Investment and Construction Consultant Joint Stock Company.
Previously, based on the restructuring scheme of VRC in the 2012-2015 period approved by the Government last year, the corporation must withdraw capital from six enterprises.
After rearranging the corporation, it will hold 100 percent of chartered capital at 23 one-member limited joint stock companies and stakes of 50-65 percent at two others.
In addition, the conglomerate will hold stakes of less than 50 percent at 22 other subsidiaries.
Based on the restructuring plan approved by the Government, Vietnam Railway is active in railway transport business and related spheres such as railway infrastructure management, and manufacture and maintenance of railway facilities.
To boost the restructuring process of the corporation, Transport Minister Dinh La Thang and his deputy Nguyen Ngoc Dong are holding weekly working sessions with leaders of the group.
Currently, railway transport accounts for only 0.5 percent of the total passenger transport market and 1 percent of total freight transport.
The sector plans to raise the rates to 13 percent of passenger transport and 14 percent of freight transport by 2020.-VNA
The divestment decision was just made by the chairman of the company’s board of members in Resolution No. 16-14/NQ-HDTV.
Under the resolution, Vietnam Railway will divest all investments from My Trang Stone JSC, Hanoi Investment and Construction JSC, Hanoi Investment and Construction Consulting JSC No. 1, Vinh Nguyen Investment Construction Trading Development JSC, and Vietnam Railway Signal Telecommunication JSC.
In addition, it will also sell all holdings in Hanoi Rail Tour, Da Nang Construction JSC, Railway Construction and Engineering JSC, Construction No.2 JSC and Railway Infrastructure Development JSC.
Apart from all-out divestment from these 10 enterprises, VRC will maintain less than 30 percent of chartered capital at three other companies namely Investment and Construction JSC No. 3, Railway Construction Corporation JSC and Construction JSC No.6. It will also reduce its stake to less than 20 percent at Transport Investment and Construction Consultant Joint Stock Company.
Previously, based on the restructuring scheme of VRC in the 2012-2015 period approved by the Government last year, the corporation must withdraw capital from six enterprises.
After rearranging the corporation, it will hold 100 percent of chartered capital at 23 one-member limited joint stock companies and stakes of 50-65 percent at two others.
In addition, the conglomerate will hold stakes of less than 50 percent at 22 other subsidiaries.
Based on the restructuring plan approved by the Government, Vietnam Railway is active in railway transport business and related spheres such as railway infrastructure management, and manufacture and maintenance of railway facilities.
To boost the restructuring process of the corporation, Transport Minister Dinh La Thang and his deputy Nguyen Ngoc Dong are holding weekly working sessions with leaders of the group.
Currently, railway transport accounts for only 0.5 percent of the total passenger transport market and 1 percent of total freight transport.
The sector plans to raise the rates to 13 percent of passenger transport and 14 percent of freight transport by 2020.-VNA
