31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Industry
Transport Ministry signs railway maintenance contract with Vietnam Railways
Ngoc Thuy 19:31, 2021/05/25
The contract is set to valid from January 1,2021 to December 31, 2021, with the value of VND2.82 trillion (US$122.47 million).

The Ministry of Transport (MoT) on May 24 signed a contract with the Vietnam Railways (VNR) for the maintenance of the country’s railway network using state fund.

 Overview of the signing ceremony. Source: Ministry of Transport

The contract ceremony took place with the presence of Minister of Transport and Chairman of the Committee for State Capital Management (CSCM), state capital representative at the VNR.

Under the contract agreement, the VNR would be responsible for regular and urgent reparation and maintenance of the national railway network in the country, ensuring smooth operation of the railway sector.

The validity of contract is set to be effective from January 1,2021 to December 31, 2021, with the value of VND2.82 trillion (US$122.47 million).

Minister of Transport Nguyen Van The urged the VNR to soon carry out the maintenance works as stipulated in the contract, while ensuring lawful rights and wages of railway workers.

Prime Minister Pham Minh Chinh on May 19 issued instruction requesting the MoT to handover the responsibility of maintaining the railway network to the VNR before May 24.

The move came following VNR’s letter to the PM calling for the government support as the state firm is on the brink of bankruptcy.

With more than 11,000 workers, the VNR is struggling to pay their salaries and keep its trains operational without state funding.

However, under the State Budget Law, only agencies depending on state budget support, in this case, it is the MoT but the CSCM, is allowed to allocate funds for its subordinate units, so PM’s decision helped clear the hurdles in timely providing funds for the VNR.

RELATED NEWS
TAG: ministry of transport railway VNR maintenance CSCM
Other news
19:58, 2022/58/30
Co-processing in cement industry: Norway expertise for Vietnam’s net-zero target
The method helps the cement industry play a more important role in reducing greenhouse gas emissions and preventing plastic waste from ending up in the oceans.
10:48, 2022/48/29
Vietnam to expand Noi Bai International Airport by 2025
The expansion of Noi Bai International Airport aims to meet the increasing number of passengers.
18:12, 2022/12/28
Finance ministry proposes to halve excise, VAT taxes on petrol products
The tax cut is scheduled to take effect in six months, subject to the approval of the Standing Committee of the National Assembly.
12:10, 2022/10/26
Vietnam's cooperative economy needs changes
It is necessary for the cooperatives and cooperative economic model to have the “determination to digital transformation, innovation, and change associated with efficiency.”
10:07, 2022/07/25
Hanoi to spend over $13 million on empowering SMEs via digital transformation
The latest decision of the local authority is applied from September 23.
09:58, 2022/58/24
Role of Hanoi and Ho Chi Minh City in tourism planning for 2021-2030
In the next stage of tourism development, good quality targeting high-end, long-stay, and high-spending visitors is believed the top priority.