Prime Minister Nguyen Xuan Phuc has requested for an analysis on a proposal to move Vietnam Railways (VNR) under the umbrella of the Ministry of Transport following legal confusion that left the corporation with no budget for railway maintenance.
The Ministry of Transport (MoT) and the Commission for Management of State Capital at Enterprises (CMSC), which currently oversees the VNR, were asked to weigh in on the proposal voiced by experts and National Assembly deputies.
The MoT itself has repeatedly asked to take back the VNR, which was handed to the CMSC in September 2018, with its latest request submitted to PM Phuc in June last year.
According to the MoT, the ministry is responsible for making budget estimates for the VNR to carry out maintenance work for the ageing national railway network as regulated in the Law on Railway Transport and relevant decrees.
But if it does so, the ministry will risk going against the Law on State Budget, in particular Article 49, which clearly states that the MoT is only allowed to prepare the budget estimate for units under its management.VNA
The VNR, meanwhile, is no longer under the ministry’s umbrella.
The CMSC is also unable to approve the budget for the VNR legally. It is only permitted by the railway law to monitor the use of the State budget for production and business purposes, not for asset management under which maintenance work for the railways is categorised.
The MoT said that it would be best to transfer the VNR back to clear up confusion while avoiding the hassles of amending laws and related decrees.