Vietnam’s railway sector has overcome a lot of difficulties and challenges in recent years and reached remarkable achievements. In the first eleven months this year, the sector attained transport revenue of VND2,068 billion, representing an increase of 6.5 per cent over 2004. It has strictly observed all traffic safety regulations and prepared well to deal with natural calamities and traffic jams.
In 2005, the Vietnam Railway Corporation (VRC) has been operating in the context of high economic growth. Demand for goods transport and people's travel increased, especially in the festivals and summer. In addition, the firm, which has ran under a corporation model, becoming stable and developing. With the priorities given by the government and ministries, the corporation has a lot of competitiveness advantages in the market economy.
However, the VRC has also faced a lot of difficulties such as higher fuel prices, competition with other increasing transport means, and limited capability. The whole sector set targets: "Renewal, safety and stable development" with specific and synchronous solutions for the year.
The corporation used engines with large capacities which consume less fuel. The goods and passenger flows, and allocation of fleets have been controlled strictly to prevent losses and wastes. The management has also been tightened, therefore, the fuel consumption was saved, estimated at VND10 billion.
The corporation kept improving its service quality. Making best use of its advantages, such as low transport cost, together with rationalizing production procedures and reducing charges, the firm has satisfied demand of customers.
To deal with increasing demand on goods transport, which is in line with the economic growth, the VRC focused on diversifying its services, such as running additional cargo carriages, shortening time of freighter routes, building new carriages following the customers' requirements, reducing charges to hedge competitiveness. Especially, the corporation established customer service centres, simplified administrative procedures, and improved quality to better serve customers. It also concentrated on inspecting and supervising safety conditions, asking for investment from the Government to upgrade transport capability and improve business operations.
To maintain reform and development process, the VRC has mapped out development plans for 2006-2010. The firms plans to improve the existing railway infrastructure, building new railway routes to link with industrial parks and economic zones, modernizing the North-South railway routes, electrifying Hanoi-Haiphong route, building urban railways in Hanoi and Ho Chi Minh City, building new stations.
In addition, it will continue building optical cable, electronic switchboard, semi-conduct and conduct signal, electric switch, and automatic road warning systems. At the same time, production facilities will also be rearranged, and infrastructure will be renewed.
The VRC will also improve locomotives, and replace old ones. It will manufacture carriages with frozen containers, xitec, and new high-quality carriages and goods wagons. The firm plans to shorten departure to 80 km/h by 2020 for cargo freighters and to 120 km/h for passenger trains. It will facilitate customers by diversifying ticket sales via agents and Internet.
With positive results gained in 2001-2005, the Vietnam Railway Corporation has made great contribution into the national socio-economic development. It has served people's demand for transport and travel, which deserves a leading sector in socio-economic development, national security and defence, and integration into ASEAN and the world railway systems.
P.V
Vietnamese
