Vietnam Railways Corporation (VRC) 2026: Roadmap of Double-Digit Growth and Technological Transformation
Despite the pressure of natural disasters throughout 2025, Vietnam Railways demonstrated a strong financial performance. The company has followed a positive trajectory on its revenues and profitability and has reinforced this momentum with a double-digit growth target for 2026. Acting in line with Politburo’s Decision No. 57, VRC aims to restructure the railway sector as a large industrial complex rather than just a transportation network. This strategy includes deepening integration on high-speed lines, port connections and urban rail systems.
2025 Financial Summary and Strategic Achievements
2025 has been recorded as a year of growth for VRC, despite natural disasters and external fluctuations. Consolidated revenue expectations are to exceed VND10,700 billion and increase by 10% compared to the previous year. This performance also supported the profitability indicators, and an increase in the profit target of VND 139 billion was envisaged, indicating a net growth of approximately 5.3%. On the safety side, accidents decreased by 8.9%, strengthening operational safety. Additionally, operational qualities have also improved, such as the 99% on-time arrival rate for the Thong Nhat passenger train.
Transition: Railway Industrial Complex and Modernization
Under the leadership of General Manager Hoang Gia Khanh, a Railway Industrial Complex plan to be implemented for the 2026-2030 period was announced to the public. This investment will play a key role in high-speed North-South railways, port connections and urban rail systems. VRC’s digital transformation aims to transition from the classical model to a science-based management model by placing it at the center of business processes. Thus, while local production competencies will be strengthened, supply chain security will be increased by reducing foreign dependency.
Record Cooperation with China in International Transportation
Railway trade with China is experiencing its golden age in 2025. As of November, the cargo volume carried exceeded the 1 million ton limit, and this figure corresponded to a growth of 29%. Gia Lam – Nanning international passenger train restarted its services, which had been paused for a while due to the pandemic, as of May 2025 and carried more than 11 thousand passengers in a short time. These developments enhance VRC’s global competitiveness by strengthening regional integration and international passenger flows.
Human Resources and Education Investments
The government’s approach highlights demands for capital increases and specialized training budgets for the VRC to operate modern railway lines. By 2026, it is aimed for Vietnam not only to remain an operator for the railway industry, but also to be positioned as a technology-producing power. This vision will be supported by comprehensive talent development programs, specialized training and international certifications for highly skilled engineering and IT staff. Thus, VRC will approach a leading position in producing innovative solutions while increasing operational efficiency.
Strategic Forecasts for the Future
VRC’s 2026 plan aims not only at the combination of lines and technologies, but also at establishing an integrated logistics ecosystem. In this context, a tight synergy is established between urban rail systems and port operations. In addition, data-oriented management and cyber security investments have been identified as the most critical elements that increase business continuity and customer trust. While the company implements its restructuring plan step by step, it aims to create an industrial ecosystem that accelerates the local economy. This approach is consistent with the VRC’s goals of increasing local employment and strengthening regional competitiveness.
Risks and Management Strategies
As with every major transformation, VRC is expected to face some risks. Financial fluctuations, high investment costs, supply chain disruptions and qualified workforce supply are among these risks. However, the company aims to minimize these risks with comprehensive financial planning, high standards of operational excellence and strategic partnerships. It plans to reduce operational costs and carbon footprint, especially with sustainable energy solutions and renewable energy integration. In addition, ensuring long-term investment security by increasing financing diversity through public-private sector cooperation models is among the priority targets.
Result: VRC in a Rapidly Developing Industry Axis
VRC’s 2026 vision aims to be an effective actor in the regional and global arena by combining double-digit growth target, technological transformation and railway industrial complex focus. This strategy, supported by human resources investments and international cooperation, positions Vietnam’s railway industry as a force that produces innovative solutions, rather than seeing it as just a transportation module. The company is determined to achieve impressive results in 2026 with its approach focused on efficient operations and sustainable growth. The steps taken during this period form the basis of a future vision that will add value to the local economy and strengthen regional competitiveness.
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