VietNamNet Bridge – The General Director of the Vietnam Railway Corporation has admitted that the railway industry is facing difficult challenges, and if the sector does not take prompt action, railway transport could cease.

One month after taking office, the new head of the Vietnam Railway Corporation, Mr. Vu Ta Tung, sent an open letter to the corporation’s employees to share his concerns.

According to Tung, the market share of rail transport in recent years has declined and at present accounts for less than 1% of the local transport market.

The situation is caused by outdated infrastructure of the sector, and slowness in innovation and adaptation to the market mechanism.

"It is time to have the courage to admit the fact that the Vietnam Railways Corporation has been facing unprecedented difficulties and challenges in recent decades. The risk of the disappearance of rail transport will be a reality if we do not take action now. The corporation has only one way to go: change itself to regain confidence of the society, the people, and to survive and grow,” Tung said.

Tung said that the railway sector would survive only if it restructured and reformed its business.

Na Son