THE PRIME MINISTER

DECIDES:

Article 1.- To establish Vietnam Railways Corporation on the basis of reorganizing the existing Vietnam Railway Union.

Vietnam Railways Corporation (hereinafter called the Corporation for short) is a State corporation which is engaged in business activities and performs the tasks of managing, exploiting and maintaining the system of railway infrastructure assigned by the State, has the legal person status as well as civil rights and obligations prescribed by law, takes self-responsibility for all its business activities within the capital amount managed by itself; has seal, assets and concentrated funds, may open accounts at the State Treasury as well as domestic and foreign banks according to law provisions, is organized and operates in accordance with the Corporation’s Charter.

Vietnam Railways Corporation has its international transaction name of Vietnam Railways (abbreviated to VNR).

The Corporation is headquartered in Hanoi.

Article 2.- The Corporation has the following principal tasks:

1. To do business in domestic and international railway transport, multi-mode transportation; to provide transport agency and services; to manage, exploit, maintain and repair the national railway infrastructure system; to provide consultancy on, survey, design, manufacture, build and repair specialized railways means, equipment and accessories as well as mechanical products; to provide consultancy on, survey, design and build communications, irrigation, industrial and civil works; to produce and trade in construction materials, consumer goods and foodstuffs; to deal in real estates as well as tourism, hotels, goods import and export, telecommunications and informatics services; printing; labor export; to cooperate and enter into joint ventures with domestic and foreign organizations in railway activities and conduct other business activities according to law.

2. To receive and efficiently use capital, natural resources, land and other resources assigned by the State for the performance of production and business development task.

3. To organize the study and application of scientific and technological advances; to train and foster officials and workers who can meet the branch development demand.

Article 3.- Organization and operation

1. The Corporation is organizationally structured to include:

- The Managing Board and the Control Board;

- The general director and the assisting apparatus;

- Member units at the time the Corporation is set up, as seen in Appendix enclosed herewith.

2. The Corporation’s organization and operation are specified in the Corporation’s Organization and Operation Charter promulgated by the Government.

Article 4.- The Minister of Communications and Transport shall, after reaching agreement with the Minister of the Interior, submit to the Prime Minister for appointment, the Managing Board chairman, the general director and other members of the Managing Board.

1. The Corporation’s Managing Board shall have the responsibility to elaborate the Charter on the Corporation’s organization and operation and submit it to the Government for promulgation; appoint deputy-general directors and chief accountant of the Corporation; and direct the implementation of the plan on the reorganization of member units according to the roadmap in the enclosed appendix.

2. The Minister of Finance shall assume the prime responsibility and coordinate with the Ministry of Communications and Transport in allocating capital to the Corporation.

Article 6.- This Decision takes effect 15 days after its signing.

The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People’s Committees of the provinces and centrally-run cities, the Managing Board and the general director of Vietnam Railways Corporation shall have to implement this Decision.

For the Prime Minister
Deputy Prime Minister
NGUYEN TAN DUNG

C. Non-business units

1. Railways Intermediate Vocational School;

2. Railways Technical and Professional Training School No. II;

3. Railways Projects Management Unit (RPMU);

4. Railways Projects Management Unit of Region 1;

5. Railways Projects Management Unit of Region 2;

6. Railways Projects Management Unit of Region 3.

D. Representative offices

1. Representative office of Vietnam Railways Corporation in Central Vietnam;

2. Representative office of Vietnam Railways Corporation in Beijing, China.

E. Joint-stock companies with capital contributed by the Corporation

1. Hai Van Nam Hotel Joint-Stock Company;

2. Railways Transportation Service Joint-Stock Company of Region 1;

3. Railways Transportation and Trade Joint-Stock Company.

F. Joint-venture company

1. Hanoi Railways Tourist Service Company.-