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.
- Vietnam among Switzerland’s priorities for economic cooperation: Swiss President
- Japanese giants pledge further support for Vietnam
- ADB, PVN establish partnership to promote green energy development in Vietnam
- VinFast launches global EV brand at 2021 Los Angeles Auto Show
- Southern region’s manufacturers in need of support to restore operations
- Vietnam economy on track for recovery: World Bank
- PM clarifies Vietnam’s attraction to foreign investors
- Vietnam might extend current wind power feed-in tariff to March 2022
- Vietnam Gov’t plans to mobilize US$8 billion via G-bonds next 2 years to aid growth
- Without raising public debt, Vietnam would miss opportunities for growth: Investment Minister
Vietnam among Switzerland’s priorities for economic cooperation: Swiss President
Post-pandemic tourism: harnessing the value of cultural heritages
Marvelous season of marigold flowers in Ba Vi Mountain
Vietnam joins the world to end violence against women
Japanese giants pledge further support for Vietnam
Vietnam holds national cultural conference after 75 years
Surge in supply of Vietnam’s green buildings
Hanoi begins inoculating children with Pfizer Covid-19 vaccines
Initiative supports Vietnamese SIBs in addressing Covid-19 aftermath