Empowered to manage and use railway infrastructure, the Vietnam Railway Corporation (VNR) has begun the transformation of its business model, with the goal to streamline and improve cargo and passenger services in the modern era.

Vietnamese Prime Minister Pham Minh Chinh received Chinese Vice Premier Zhang Guoqing in Beijing on June 27, pledging close cooperation in strategic transport connectivity projects of the two countries.

While air travel becomes more expensive, the railway sector has worked to unlock its tourism potential to meet high travel demand during the upcoming Liberation of the South - National Reunification Day (April 30) and International Labour Day (May 1) holidays.

The Ministry of Transport has submitted a report to the Government regarding the implementation of a plan to ensure order and safety in railway corridors, as stipulated in the Prime Minister's Decision No. 994/2014/QD-TTg on ensuring road and railway transportation safety.

Private investors are expected to be gain interest in railway infrastructure development projects that have so far not had significant success in raising private capital.

The recovery of the railway transportation system still faces numerous challenges amidst fierce competition from road and air transport. In the coming time, the Vietnam Railway (VNR) is set to mobilise resources, innovate operational methods, strive for profitability, and prepare for investment for North-South express railway.

The transport sector has carried 3.35 billion passengers in the past 11 months, a surge of 48.7% year on year, according to Chief of the Office of the Ministry of Transport Nguyen Tri Duc.

According to Vu Anh Minh, chairman of Vietnam Railways Corporation (VNR), over the past time, railway freight transport between Vietnam and China has seen an increase in transported goods.

International railway freight transport service posted positive growth last year and in January, according to the Vietnam Railway Corporation.

Deputy Prime Minister Le Van Thanh has requested the Vietnam Railway Corporation (VNR) to make drastic reforms so as to address shortcomings and develop the sector further in the time ahead.

The current COVID-19 crisis is creating opportunities for the railway sector thanks to its prominent advantages in international transport.

The Ministry of Transport (MoT) has proposed total investment of 240 trillion VND (10.4 billion USD) for the expansion of the railway network from now until 2030, to be sourced by the State budget and other legal sources.

The Vietnam Railway Corporation (VNR) has proposed borrowing non-interest loans worth 800 billion VND (34.77 million USD) to deal with its difficulties caused by the COVID-19 pandemic. ​

Facing an increasing range of difficulties in business, the railway sector is exerting its maximum efforts to restructure itself for changes and survival.

The railway sector has taken twin blows from the COVID-19 pandemic and the repairs of the Hanoi-HCM City railway.

The Vietnam Railways Corporation (VNR) has asked the Ministry of Transport to propose Prime Minister Nguyen Xuan Phuc extend the expiry for locomotives and carriages by three years.

A pair of trains that run daily between Hanoi and Ho Chi Minh City will be suspended as from March 26 due to the impact of the COVID-19 epidemic, Hanoi Railway Transport JSC has announced.

The Yen Vien – Pha Lai – Ha Long – Cai Lan railway project are waiting for a final decision on whether it would continue to be implemented not.

The railway sector is looking to attract more investment and improve its competiveness, but the lack of capital as well as mechanisms and policies has hampered its development.

By teaming up with a foreign partner and stepping up the mechanical work, the railway sector will build hundreds of high-quality carriages.