Who is the owner of Vietnam Railways?

Who is the owner of Vietnam Railways? (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Who is the owner of Vietnam Railways?

The State is the owner of the Vietnam Railways. The Government uniformly organizes the exercise of the rights and obligations of the owner towards the Vietnam Railways. The Ministry of Transport is assigned to exercise the rights and obligations of the owner's representative agency to the Vietnam Railways in accordance with law.

(Article 6 of the Charter of organization and operation of Vietnam Railways promulgated together with Decree 11/2018/ND-CP)

2. Legal form and legal status of Vietnam Railways

- Vietnam Railways is a one-member limited liability company with 100% charter capital invested by the State, operating in accordance with the Law on Railways, the Law on Enterprises, the Law on Management and Use of Capital, relevant laws and regulations, and this Charter.

- Vietnam Railways has:

+ Legal status, own seal, and the right to open accounts in Vietnam Dong and foreign currencies at the State Treasury, domestic banks, and foreign banks in accordance with the provisions of relevant laws and this Charter;

+ Own capital and assets, be responsible for debts and other property obligations within the amount of their charter capital, take civil responsibility, and exercise the rights and obligations of the owner towards subsidiaries and affiliated companies within the capital amount invested by the Vietnam Railways;

+ The right to own, use, and dispose of the own name, trademark, and logo of the Vietnam Railways in accordance with the law.

(Article 3 of the Charter of organization and operation of Vietnam Railways promulgated together with Decree 11/2018/ND-CP)

3. Objectives and operational functions of Vietnam Railways

- Target:

+ Contribute to the development of a synchronous railway transport system in terms of infrastructure, organization, and management of transport, industry, and services at a high level; ensure smooth, orderly, safe, accurate, fast, convenient, and efficient transportation operations; form a driving force for socio-economic development; serve the cause of industrialization and modernization of the country; meet the needs of regional and international integration;
contribute to ensuring national defense, security, and environmental protection;

+ Preserve and develop equity invested in Vietnam Railway Corporation and Vietnam Railway Corporation's capital invested in other enterprises; complete other tasks assigned by the owner.

- Operation function:

The Vietnam Railways directly manufactures, trades, and makes financial investments in subsidiaries and affiliated companies; coordinates and directs the activities of subsidiaries and affiliates according to the proportion of charter capital in those companies in accordance with the law and this Charter; manages and exploits effectively the house fund and land fund allocated or leased by the State; organizes rescue and rescue; and ensures security, order, and safety of railway transport according to regulations.

(Clause 1, Clause 2, Article 4 of the Charter on organization and operation of Vietnam Railways promulgated together with Decree 11/2018/ND-CP)

4. Business lines of Vietnam Railways

- Main business sectors:

+ Trading in railway infrastructure;

+ Management of maintenance and exploitation of railway infrastructure;

+ Providing national railway transportation management services;

+ Trading in means of transport, machinery, and equipment for maintenance and construction of railway infrastructure;

+ Trading in rail transport, domestic multimodal transport, international intermodal transport, and supporting services for modes of transport;

- Lines and professions related to the main business lines:

+ Consulting, surveying, designing, and constructing traffic, irrigation, industrial, and civil works;

+ Consulting design, manufacturing, building, assembling, converting, and repairing vehicles, equipment, manufacturing spare parts, specialized railway supplies, and mechanical products.

(Clause 3, Article 4 of the Charter on organization and operation of Vietnam Railways promulgated together with Decree 11/2018/ND-CP)

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