Transport Ministry signs railway maintenance contract with Vietnam Railways
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.
Other News
- Vietnam news in brief - May 17
- EVN to have limited role in direct power purchase agreement mechanism
- Vietnam's gaming industry aims for $1 billion in revenue by 2028
- Vietnam c.bank to continue auctioning gold
- South Korea’s Hyosung plans to build data center in Vietnam
- Vietnam in need of US$12 billion for EV infrastructure: HSBC
- Samsung to pour US$1 billion annually into Vietnam
- Vietnam Export Fair 2024: Opportunities to boost exports
- Vietnam's first lotus root export to Japan
- Hanoi to host the Vocational Education Day 2024
Trending
-
Vietnam parliament convenes 7th session today, kicks off process to elect new leader
-
Vietnam news in brief - May 20
-
Expanding startup community: Education is key
-
Vietnamese enterprises anticipate ASEAN common visa policy
-
Hanoi's 70th liberation anniversary literary and art contest launched
-
Japanese duo of illusionists to wow audiences in Vietnam
-
Walking tour to experience public arts in the heart of Hanoi
-
Propaganda poster contests launched for Hanoi’s 70th liberation anniversary
-
Bas-reliefs on Hue's nine dynastic urns listed as UNESCO heritage