VIETNAM RAILWAYS (VNR)

VIETNAM RAILWAYS (VNR): The Backbone of National Transport Making a Fragile Recovery

VIETNAM RAILWAYS (VNR) (Vietnamese name: TỔNG CÔNG TY ĐƯỜNG SẮT VIỆT NAM) is the sole operator of Vietnam’s national railway system, linking the country from north to south across over 1,700 kilometers of tracks. As a state-owned enterprise under the Ministry of Transport, VNR plays a pivotal role in both passenger and freight transportation, as well as infrastructure maintenance and leasing services. It is registered under Tax Code (TIN): 0100105052 and headquartered at 118 Le Duan Street, Hoan Kiem District, Hanoi.

Under the leadership of Chairman and General Director Mr. Dang Sy Manh, VNR employs over 6,100 people, managing daily operations that support the movement of goods and people across the nation. Its monopoly status gives it unmatched reach and responsibility, but it also exposes the company to public scrutiny and the weight of state-managed reform.

Financially, 2023 marked a fragile but symbolic return to profitability after years of losses. VNR reported a net profit of USD 186,457, a narrow margin but a significant reversal from its USD 7.08 million loss in 2022 and over USD 23 million loss in 2021. Revenue reached USD 240.75 million, up 7.35% year-over-year, while total assets ballooned by 55.44% to USD 957.54 million. More impressively, owner's equity surged 65.68% to USD 857.65 million, driven by government capital injection and asset revaluation.

Yet, risks remain stark. VNR’s working capital is critically low at just USD 5.95 million, limiting its ability to cover day-to-day operational shocks or respond to infrastructure failures. Its profitability remains razor-thin, heavily dependent on state subsidies, and vulnerable to competition from faster and more flexible road and air transport options. With an aging infrastructure, slow modernization, and limited digitalization, VNR faces a difficult path toward long-term sustainability.

Strategically, VNR is attempting to reposition itself through partial service modernization and joint venture partnerships; however, progress has been slow. Its role as both infrastructure manager and transport operator may require structural separation—an idea discussed but not yet implemented.

As the only national railway company in Vietnam, VNR holds a unique place in the country’s economic fabric, but it must transform to stay relevant. For investors, policymakers, and logistics players, VNR represents both a strategic asset and a policy challenge.

To assess financial health, reform outlook, and partnership viability, rely on VANGUARD BUSINESS INFORMATION LLC (VBI)—Vietnam’s most trusted source for infrastructure intelligence and state-owned enterprise analysis.