TABLE OF CONTENTS

Chapter 1. Current situation of Vietnam national railway system...........................................2

1. Legal framework for VNR...................................................................................................................2
1.1. General regulations.......................................................................................................................2
1.2. VNR and its affiliates...................................................................................................................3
2. Current railway system........................................................................................................................3
3. Development plan of Vietnam railway system....................................................................................5
4. Operation activities..............................................................................................................................5
5. Current infrastructure..........................................................................................................................5
6. Current fare policy...............................................................................................................................6
Chapter 2. Current situation of urban railway...........................................................................7
1. Current situation of urban railway network in Hanoi City...................................................................7
1.1. General information......................................................................................................................7
1.2. Current situation...........................................................................................................................8
2. Current situation of urban railway network in HCMC.........................................................................9
2.1. General information......................................................................................................................9
2.2. Current situation.........................................................................................................................11
Chapter 3. Possibilities of Railway market...............................................................................13
1. Current railway market......................................................................................................................13
2. O&M business...................................................................................................................................13
2.1. Urban railway operation in Hanoi and HCMC............................................................................13
2.2. Operation and maintenance of VNR...........................................................................................13
2.3. Non-rail business of VNR...........................................................................................................13
2.4. Financial situation of VNR.........................................................................................................13
2.5. Background of privatization of VNR..........................................................................................13
2.6. IPOs of Hanoi Railway Company and Sai Gon Railway Company............................................18
Chapter 4. Recommendations.....................................................................................................19
Chapter 1. Current situation of Vietnam national railway system

1. Legal framework for VNR

1.1. General regulations

The legal system of Vietnam is quite complicated since it includes 12 types of documents issued
by competent agencies (according to Article 2, Law No. 17/2008/QH12 on the promulgation of
legal documents). Basically, legal documents which constitute legal framework for Vietnam
railway can be divided into three levels in hierarchical order: Laws enacted by the national
assembly, Decrees issued by the government, and Circulars that are issued by ministries or
ministerial agencies. Decrees and Circulars are proposed by governmental ministries to support
the implementation of law. From practical point of view, these normative documents play very
important role since they provide guidelines for executive organizations and individuals to
follow, stating detailed responsibilities of each related parties. The key organizations in the
railway sector, in charge of enforcement and implementation of legal framework, are the
Ministry of Transport (MOT), Vietnam Railway Administration (VNRA) and Vietnam Railways
(VNR).

Railway Law

In general, Railway Law (Law No. 35/2005/QH11 dated June 14, 2005 of the National
assembly) (so-called Railway Law 2005) has the highest validity, dealing with almost every
aspect related to railway activities. Specifically, it regulates business administration and
management for railways, planning and investment, rolling stock and train operation, rights and
obligations of organizations and individuals involved in railway activities, railway traffic rules,
signals, order and safety assurance, and so on. Originally, railway law was developed targeting
the national railways. In 2005 some provisions about construction of urban railways were newly
supplemented.

In order to provide detailed guidelines on implementation of railway law, Decree No.

14/2015/ND-CP was issued by the Government on February 13, 2015, detailing and guiding the
implementation of a number of articles of The Railway Law. Besides stating further
requirements for some provisions in railway law such as railway infrastructure, railway business
and urban railway, it allocates the responsibilities of ministries and competent agencies in
ensuring railway traffic order and safety.

(More information about the recent status of revising Railway Law…)

Law On Construction

….

On the other hand, matters related to construction of railway infrastructure and administrations
after the construction are under the control of Law on Construction (Law No. 50/2014/QH13
dated June 18, 2014 of the National assembly). This law, which is under the authority of the
Ministry of Construction, governs the planning, construction, and management of civil
engineering facilities and buildings in general, including those of railways.

Serving as a guidance on the Law on Construction, Decree No. 46/2015/NĐ-CP on “Quality

control and maintenance of construction works” defines the requirements for inspection, design
and construction activities, maintenance work, as well as resolution of construction work
incidents arising during the construction.

Other Decrees and Circulars

In addition, there are a large number of legal documents which must be consistent with the
constitution, laws and ordinances issued by higher authority. These decrees and circulars are
concerned with some certain tasks or policies in railway sector.

(A simplified diagram on the legal system of railway in Vietnam)

1.2. VNR and its affiliates

2. Current railway system

The total length of Vietnam national railway system is 3,160 km, in which main line is 2,600 km
long. There are three types of railway gauge including meter-gauge (accounting for 85%),
standard gauge and dual-gauge track. The railway network is divided into 7 main lines:: Hanoi –
HoChiMinh City, Hanoi – Hai Phong, Hanoi – Dong Dang, Hanoi – Lao Cai, Hanoi – Quan
Trieu, Kep – Luu Xa, Kep – Ha Long. The existing railway network is operated and maintained
by Vietnam Railways (VNR), a state-owned enterprise which runs a number of different
subsidiaries involved in construction, communications, training, and other activities related to
railway maintenance.

Technical standard and railway infrastructure in Vietnam overall is in poor and outdated
condition. The quality of both rails and bridges, after around 100 years of usage, are low.
Tunnels are deteriorated and leaked; types of sleepers are inconsistent; communication
equipment is outdated; in some sections, safety corridor is not ensured. Most of the sections
remain in need of extensive rehabilitation and upgrading. What has been done mainly focused on
strengthening bridges and preventing the network from deteriorating further. As a result, average
train operating speeds are constrained at 40 km/h for passengers trains and 22 km/h for freight
trains.
Overall, the railway market share in Vietnam is small in
comparison with other transportation modes. Apparently,
railway sector is losing competitiveness against road and air
transport. From 2000 to 2014, market share of railway
sector shrank continuously. Specifically, in 2000, the
railway system carried 9.9% of passengers and 3.5% of
freight tonnages. In 2014, passenger transport and freight
transport reduced to 1.14% and 2% respectively.
Meanwhile, in 2014, road transport accounted for 61.43%
of freight and 95.75% of passenger transport. Air transport
only constituted for 0.5% of passengers in 2001 but rose to
2.05% in 2014.

In term of business result, in 2015, VNR only made 65

billion VND, aiming at 69 billion VND in 2016. Saigon
Railways, one of the biggest member companies of VNR,
earned 5 billion VND, aiming at 10 billion VND in 2016.
These numbers showed a step back as compared to 2014
when VNR announced around 180 billion VND of profit,
targeting an increase of at least 6 billion VND in 2015.

Total length in railway in Vietnam by gauge

Main route and sidings Length (km)

Main and branch lines 2,600
1,000-mm gauge 2,169
1,435-mm gauge 178
Dual gauge (1,000 and 1,435 mm) 253
Loops and sidings 506
Total length 3,160

Vietnam Railways uses twin-block concrete sleeper, wooden sleeper and steel sleeper. 43 kg/m
rail type and rigid fastenings are used in most of the rail network. Recently, elastic fastenings are
currently used for trial in some selected sections.
 The existing railway network is operated and maintained by Vietnam Railways (VNR), a
state-owned enterprise which runs a number of different subsidiaries involved in construction,
communications, training, and other activities related to railway maintenance.

3. Development plan of Vietnam railway system

Strategy for development of Vietnam railway with vision to 2050

The Prime Minister of Vietnam made Decision no. 214/QD-TTg on February 10, 2015 to
approve for Railway Development Strategy till 2020, vision to 2050, which has brought about a
whole picture of future railway system in the country.

For inter-provincial railway, Vietnam will focus on upgrading current lines till 2020. In
November, 2014, Vietnam Railway Administration (VNRA) submitted Ministry of Transport a
Plan of modernization on current North-South railway line. The overall purpose is to increase the
average train speed to 80-90km/h for passenger and 50-60km/h for freight. Accordingly, in the
period to 2020, VNRA proposed to invest into several infrastructure projects and procurement of
equipment in order to increase the velocity as well as transport capacity by such activities as
improving, upgrading certain sections, constructing Khe Net, Hai Van tunnels, improving weak
railway bridges, etc. Moreover, in the Plan of VNRA, a series of branch lines connecting sea
ports, industrial zones, tourism areas shall be newly built. VNRA estimated the total cost for
these upgrading activities of 8.9 to 10.2 billion VND. This Plan is basically in accordance with
the approved Strategy. So far, Ministry of Transport has not officially approved it.

In the same period till 2020, Vietnam will study on newly construction of high-speed railway
from North to South. From 2020 to 2030, it aims to start the construction of new high-speed
railway on North-South axis which is expected to allow train operation velocity of 160 to
200km/h. In the vision towards 2050, the North-South railway line will be completed and trains
to operate on this line can expect the velocity of 350km/h after 2050.

The Plan on construction of high-speed railway on North-South axis had ever been rejected by
National Assembly of Vietnam in 2010 because of huge investment cost (estimated at 56 billion
USD, accounting for about 50% of Vietnamese GDP). With this newly approved strategy, the
Government of Vietnam still insists on the importance and necessity of high-speed railway from
Hanoi to Ho Chi Minh City for future transport demand. Ministry of Transport is now making a
plan of studying, aiming at explaining questions of National Assembly in last submission, as well
as supplementing more data, information, evaluation, and preparing a Feasibility Study report for
consideration of National Assembly. The Ministry targets to start the construction in 2020 and
expects to commence the operation after 4 to 5 years.

4. Operation activities

…
5. Current infrastructure

Bridges and sewers

There are 1,790 railway bridges with a total length of 45,368 m and 31 combined bridges with
total length of 11,753 m, of which total bridge length on Hanoi - Ho Chi Minh city railway line
is 36,056 m is accounting for 63%

There are 180 temporary steel beam bridges with a total length of 18,084 m, accounting for 31%
of total bridge length. The total length of concrete bridges is 13,274m, of which 9,179 m is on
Hanoi- Ho Chi Minh City railway line.

There are 5,128 sewers with a total length of 80,850 m.

Tunnels
There are 39 tunnels with the length of 11,512 m, of which 27 tunnels are on Hanoi- Ho Chi
Minh City railway line with the length of 8,335 m.
Signaling and telecommunication system

Electric block system with color-light block equipment is used in most of the routes in the north.
Semi-automatic block system is used in Hanoi - Ho Chi Minh City railway line.

As for information system, 1 channel, 3 channel and 12 channel transmission equipment made in
Hungary from 1972 to 1979 are used in Vietnam Railways. High-frequency radio system is used
in emergency storage system in some sections.

The open wire system is mainly used in long-distance information transmission. Twin copper
cable is used in local information system.

Since 1998, in Hanoi - Ho Chi Minh City railway line, Vietnam Railways has applied Microband
ATM technology for communication through multi-channel statistic transmission with the speed
of 64 kb per second of Vietnam Post and Telecommunications Corporation.…
Locomotives
A total of 302 locomotives are used in Vietnam Railways
Number of locomotives (Year 2005)
Locomotive Type Model Horsepower Number of units
A. Steam - - -
B. Diesel
Czechoslovakia D12E 40,000 40
Belgium D18E 28,800 16
Romania D11H 25,300 23
Doi Moi D19E 76,000 40
GE D9E 29,700 33
India D13E 32,400 24
Australia D5H 6,500 13
DFH-21 D10H 20,000 20
Push and Pull D8E 1,600 2
TY7 D4H 30,800 77
TY 1.435 D4HR 2,800 7
Dong Phong D16E 4,800 2
JMD 1.435 D14E 7,000 5
Total units 302

VNR has a total of 1,063 passenger carriages and 4,986 freight wagons.
Number of coaches (Year 2006)
Passenger coaches Number of units Freight wagon Number of units
1,000 mm 1,055 1,000 mm 4,632
Soft berth coach 140 Box wagon G 2,049
Hard berth coach 183 High-sided wagon H 1,244
Soft seat coach 139 Low-sided wagon N 366
Hard seat coach 338 Flat-surface car M 58
Long seat coach 74 Container Mc 522
Dining coach 61 Unflat-surface MVT 20
Baggage coach 50 Tank wagon P 128
Postal service coach 70 Xitec Pm 52
Guard wagon XT 134
CD 59

1,435mm 8 1,435mm 354

Soft seat coach - Box wagon GR 46
Hard seat coach 2 High-sided wagon HR 290
Long seat coach 5 Low-sided wagon Nr 6
Baggage coach 1 Flat-surface car Mr 2
Dining coach - Guard wagon XTr 6
CDr 4
Total Number of units 1,063 Total Number of units 4,986

6. Current fare policy

…
Chapter 2. Current situation of urban railways

1. Current situation of urban railway network in Hanoi City

1.1. General information

The Urban railway network in Hanoi is under developing following The the Master Plan on
Development of Hanoi Capital City up to 2030 with vision to 2050 was approved in Decision
1259/QD-TTg on July 26, 2011. Accordingly, Hanoi is going to build 8 9 urban railway
lines/sections by 2030 with total length of about 305km. Among those lines, four have been on-
going with two lines under construction now.

Plan of urban railway lines in Hanoi City in Decision 1259/QD-TTg

Among those lines, five are in process of construction and studying, i.e. Line 1, 2, 2A, 3 and 5.
 Summary of Urban Railway Lines in Hanoi

Alignment Authority for

Line Length Status
Construction
Line 1 38.7 km On-going by VNR
Ngoc Hoi – Yen Vien – Japanese ODA for
Nhu Quynh the first section
(15.36km)
Line 2 35.2 km On-going by Hanoi
Noi Bai – City center – Japanese ODA for People’s
Thuong Dinh the first section Committee
(11.5km) (HPC)
Line 2A Cat Linh – Hao Nam – 14km By Chinese ODA, Ministry of
La Thanh – Thai Ha – under construction. Transport
Lang – Nga Tu So - (MOT)
Highway 6 – Thuong
Dinh (connecting Line
2) – Ha Dong – Ba La
Line 3 21 km By loans from HPC
French
Nhon – Hanoi Station – Government, ADB,
Hoang Mai EIB for the first
section (12.5km),
under construction
Line 4 Dong Anh – Sai Dong – 53.1 km No specific study. N.A.
Vinh Tuy – Thanh Xuan
– Tu Liem – Thuong
Cat – Me Linh
Line 5 34.5 km FS was conducted HPC
by Ministry of
South of Ho Tay – Ngoc Transport, Japanese
Khanh – Lang – Hoa Government also
Lac supported a FS to
build this line
under PPP scheme.
Line 6 Noi Bai – Phu Dien – 47 km No specific study. N.A.
Ha Dong – Ngoc Hoi
Line7 Me Linh – An Khanh – 35 km No specific study. N.A.
Duong Noi
Line 8 Co Nhue – Mai Dich – 28 km No specific study. N.A.
Yen So – Linh Nam –
Duong Xa
1.2. Current situation

Line 1 (Ngoc Hoi – Yen Vien – Nhu Quynh):

This project is to upgrade current VNR line into double tracked, elevated and electrified in order
to simultaneously function it as urban railways with higher frequency. It is implemented by Yen
Loan of the Government of Japan by an Agreement signed in 2008 and VNR had been in charge
as project owner. VNR targeted to complete it in 2018, and will operate this line since the same
track will be used for both of urban and inter-regional trains. However, the schedule of this line
is not sure now due to the bribery scandal of Japan Transport Consultants, Inc. (JTC) and VNR
from March, 2014 after the confession of JTC’s President to investigation organization in Japan
about bribing VNR’s officers to speed up the project. This resulted in an investigation in
Ministry of Transport in Vietnam and five high ranked officers in VNR were arrested. In June,
2015, these people were prosecuted for their power abuse. Due to this scandal, the project was
transferred from VNR to Railway Project Management Unit under Ministry of Transport in
Vietnam.

Line 2 (Noi Bai – City center – Thuong Dinh):

- Cấp Quyết định đầu tưInvestment decision issued by: UBND thành phố Hà NộiHanoi
People’s Committee;
- Chủ đầu tưProject owner: Hanoi Metropolitan Railway Management Board (MRB)Ban
Quản lý đường sắt đô thị Hà Nội;
- Dự án The project was approved according to Decision No. được phê duyệt tại Quyết
định số 2054/QĐ-UBND ngàydated 13/11/ November 2008 vớiwith total investment of Tổng
mức đầu tư 19,.555 billion VND, equivalent to tỷ đồng tương đương với 131,.023 triệumillion
yen Yên (trong đóin which: 16,485 billion VND, equivalent to Vốn vay JICA là 16.485 tỷ đồng
tương đương 110,.448 million yen triệu Yên, is JICA loan; vốn đối ứng làreciprocal capital is
3,.079 billion VND, equivalent to tỷ đồng tương đương 20.0,575 milllion yen triệu Yên), thời
gian thực hiệnproject period: 2009-2015.

- Quy mô xây dựngScope of construction: chiều dài tuyếnLine 2 has a length of 11.,5km,
trongin which đó 8,5kmunderground đường đi ngầm, section is 8.5km and overhead section is
3km đi cao. Khổ đường sắt đôiDouble track with track gauge of 1.435mm. Hệ thống nhà
gaStation system: 3 ga trên cao3 stations overhead and 7 stations underground, 7 ga ngầm; Depot
is located atVị trí Depot đặt tại Xuan Dinh,ân Đỉnh, huyện Từ Liêm Tu Liem District.

2.2. Tình hình thực hiện dự ánProject implementation situation:

Về thẩm định, thẩm tra Dự án điều chỉnhProject assessment: NgàyOn 12/10/ October
2015, Ministry of Planning and Investment signed the Contract for consulting service No. Bộ
KHĐT đã ký hợp đồng dịch vụ tư vấn số 599/HĐ-DVTV vớiwith Joint consulting partnership of
nhà thầu Liên danh tư vấn Công ty TNHH Mott MacDonald Limited Company (MMD) và Công
ty TNHH Giao thông vận tảiand Transportation Limited Company (UCT), contract duration is
với thời gian thực hiện hợp đồng là 180 daysngày. InTháng 11-12 November and December/
2015, BanMRB works with consulting companies to appraise the project and amend some
contents of inception assessment report and midterm assessment report đã làm việc với Tư vấn
thẩm tra Dự án điều chỉnh các nội dung của Báo cáo thẩm tra đầu kỳ và giữa kỳ as requested by
Ministry of Planning and Investmenttheo yêu cầu của Bộ Kế hoạch và Đầu tư.
V đ thêuBidding: Hoàn thànhFinish the prequalification process of all 05 civil work
and equipment packages sơ tuyspment cation process of all 05 iều. JICA đã có ý kient cation
proceshas no objections vs no objectionsion process of all 05over bidding documents of depot
and overhead packages. At the moment, JICA is considering bidding documents of underground
works package and Hiage and erhead packa HSMT gói CT Ngầm,E&M package gói cơ đie .

Về quy hoạchPlanning: HoànFinish the approval of depot planning, overhead section

and 3 underground stations thành phê duyệt quy hoạch Depot, đoạn trên cao và 3 ga ngầm C4,C7
and ,C8. ThựcFollowing the guidance of Hanoi People’s Committee and Department of
Planning and Architecture, MRB and general consultants have finished planning documents for
overall surface of underground stations hiện chỉ đạo của UBND TP Hà Nội và hướng dẫn của Sở
quy hoạch Kiến trúc, Ban và Tư vấn chung đã hoàn thiện hồ sơ quy hoạch cho tổng mặt bằng các
ga ngầm C5, C6, C9, and C10, submited Department of Planning and Architecture for
assessment and Hanoi People’s Committee for approval trình Sở QHKT thẩm định và UBND
Thành phố phê duyệt. NgàyOn 31st December 31/12/ 2015, UBND Thành phốthe People’s
Committee organized a meeting on the study result and the approval of plannng for đã tổ chức
họp về kết quả nghiên cứu, đề xuất phê duyệt quy hoạ underground stations ch các ga ngầm C5,
C6, and C10.

Line 2 is an underground line which will be managed by Hanoi People’s Committee (City
Government of Hanoi, HPC). Its infrastructure is constructed by Japanese ODA. The expected
commencement of the service is in 2017 initially. The total investment cost of this project
increased (from 19.5 trillion VND to 51.75 trillion VND, equivalent to about 265%) and leaded
to request of Vietnamese National Assembly’s approval. As a result, it must wait the
consideration and approval of the National Assembly and the Government till quarter 2 of 2016
(estimated). In this sense, the operation of this line is changed to 2018, but this is quite ambitious
target.

Line 2A (Cat Linh – Hao Nam – La Thanh – Thai Ha – Lang – Nga Tu So - Highway 6 –
Thuong Dinh (connecting Line 2) – Ha Dong – Ba La):

This line is implemented by Chinese ODA by EPC contractor. It will be the first ever elevated
urban railway to operate in Vietnam by expecting the operation commencement since middle of
2015 in the official schedule but most probably it would be sometime in 2016.The
groundbreaking ceremony of this line was on October 10, 2011. Up to now, almost parts of piers
and girders have been basically finished while there are still items left uncompleted such as
station architectures, railway system, etc. In addition, there are some accidents occurred since
starting the construction of this line, causing one death and damages to transport vehicles in site
area. Recently, Ministry of Transport decided to purchase rolling stock from China, including 13
of 4-car train sets. However, this decision has also been complained by the community because
of worries on Chinese products. Responding to this, the Minister of Transport in Vietnam has
ever said “Chinese contractor capability is limited, I wanted to replace sometimes, but it is
impossible due to conditions in loan agreement”.

In a meeting held on July 7, 2015, the schedule for commencement of this line was reported to be
further delayed from end of 2015 to around June 30, 2016. According to Deputy Minister of
Transport, the reason is that almost packages in the project are delayed 3 to 4 months. Although
project land has been entirely provided to EPC contractor, the construction progress is very slow,
the Deputy Minister added. In the opinion of General Director of Project Management Board,
one another reason is also the delay of EPC contractor in payment for sub-contractors. It is said
that sub-contractors are waiting for up to 367 billion VND (around 17 million USD) of payment
from EPC contractor. There was even local sub-contractor stopping their service of girder
launching because of this reason.

The Ministry of Transport (MOT) is in charge on construction period and HPC will take over the
entire line for operation and maintenance afterwards.

Line 3 (Nhon – Hanoi Station – Hoang Mai):

- Investment decision issued by: Hanoi People’s Committee;

Cấp Quyết định đầu tư: UBND thành phố Hà Nội;
- Project owner: Hanoi Metropolitan Railway Management Board (MRB);

- Scope of construction: Line 3 has total length of 12.5km, in which overhead section is
8.5km and underground section is around 4km (. Track gauge is 1.435mm. Station system: 8
stations overhead and 4 stations underground;

- Chủ đầu tư: Ban Quản lý đường sắt đô thị Hà Nội;

- Quy mô xây dựng: Tổng chiều dài 12,5km, trong đó đoạn đi trên cao dài 8,5km, đoạn đi
ngầm khoảng 4,0km (điểm đầu Nhổn, điểm cuối Ga Hà Nội). Đường sắt khổ đôi 1.435 mm; hệ
thống nhà ga: 8 ga trên cao và 4 ga ngầm.
- Dự án được phê duyệt tại Quyết định số 1970/QĐ-UBND ngày 27/4/2009 với Tổng mức
đầu tư là 783 triệu Euro (vốn vay ODA là 653 triệu Euro, vốn đối ứng là 130 triệu Euro), thời
gian thực hiện 2009 - 2015 và phê duyệt điều chỉnh tại Quyết định số 4007/QĐ-UBND ngày
28/6/2013 với Tổng mức đầu tư là 1.176 triệu Euro (vốn vay ODA là 899,68 triệu Euro, vốn đối
ứng là 276,02 triệu Euro); Ngày 5/12/2014 Thủ tướng Chính phủ đã có Quyết định số 2186/QĐ-
TTg phê duyệt điều chỉnh danh mục dự án với Tổng mức đầu tư là 1.176 triệu Euro (vốn ODA là
957,99 triệu Euro; vốn đối ứng trong nước là 218,01 triệu Euro). Dự án được tài trợ bởi các nhà
tài trợ: Chính phủ Pháp (RPE), Cơ quan phát triển Pháp AFD, Ngân hàng phát triển Châu Á
(ADB), Ngân hàng đầu tư Châu Âu (EIB).

Thời gian thực hiện 2009 – 2018.

1.2. Về tình hình thực hiện đến tháng 2/2016

 a. Các gói thầu xây lắp: 05 gói thầu xây lắp (CP01: đoạn tuyến trên cao; CP02: các ga
trên cao; CP03: Hầm và các ga ngầm; CP04: hạ tầng kỹ thuật depoy; CP05: Công trình kiến trúc
depo).
Gói thầu CP01: Khởi công ngày 4/7/2014, đã thi công được 34% khối lượng hợp đồng.
Gói thầu CP02: Khởi công ngày 27/5/2014, đã thi công được 26 % khối lượng hợp đồng.
Gói thầu CP03: đang chuẩn bị thủ tục để khởi công gói thầu vào tháng 4/2016, thời gian thi
công 49 tháng.
Gói thầu CP04: đã thi công được 90% khối lượng hợp đồng (10% khối lượng còn lại Ban
đang hoàn thiện hồ sơ chuyển giao cho nhà thầu gói 5 thực hiện)
Gói thh CP04: đđã thi công đư đã thi công được 90% khối.
b. Các gói thầu thiết bị (CP06, CP07, CP08 và CP09)
- Gói thầu CP06 (đầu máy, toa xe): Do chỉ có duy nhất 01 nhà thầu được xếp hạng và mời
vào thương thảo hợp đồng, quá trình thương thảo với nhà thầu đã không thành công. Đồng thời
nhà thầu có văn bản không đồng ý gia hạn hiệu lực hồ sơ dự thầu. Do vậy, Ban đã có văn bản báo
cáo Nhà tài trợ và UBND Thành phố xem xét và cho phép Hủy thầu, cho phép tiến hành đấu thầu
lại.
- Gói thầu CP07: Hiện nhà thầu đang xin giấy phép thầu và chuẩn bị bảo lãnh dự thầu, Dự
kiến ngày 2/3/2016 ký kết hợp đồng.
- Gói thầu CP08: Tư vấn đang hoàn thiện dự thảo Hợp đồng để gửi Ngân hàng đầu tư Châu
Âu xin ý kiến không phản đối. Dự kiến ký hợp đồng tháng 4/2016

- Gói thầu CP09: Sở GTVT đã trình UBND Thành phố phê duyệt Tiêu chuẩn kỹ thuật;
hiện Sở GTVT đang thẩm định Thiết kế kỹ thuật - dự toán.

This line is invested by the French Government, ADB (Asian Development Bank), AFD (…),
EIB (European Investment Bank), and others. HPC is the project owner of this newly constructed
underground and elevated railway line. Its construction was commenced on September 25, 2010
and is expected to start its operation in 2019. Up to early of 2016, five (05) packages among nine
(09) packages of this line have been under construction, while the remaining four (04) including
AFC, rolling stock, etc. have not yet started due to various reasons.

Line 5 (South of Ho Tay – Ngoc Khanh – Lang – Hoa Lac):

Ngày 29/01/2010, Văn phòng Chính phủ có Văn bản số 714/VPCP-KTN giao cho Bộ Giao
thông vận tải lập Báo cáo nghiên cứu khả thi Dự án Tuyến ĐSĐT số 5 theo hình thức Hợp đồng
BT.
 Ngày 22/3/2010, Bô ̣ GTVT có Quyết định số 713/QĐ-BGTVT v/v lâ ̣p Dự án đầu tư (Báo
cáo NCKT) Tuyến ĐSĐT số 5: Nam Hồ Tây - Ngọc Khánh - Láng - Hòa Lạc - Ba Vì. Theo đó,
Bô ̣ GTVT giao cho Cục Đường sắt Viê ̣t Nam làm Chủ đầu tư, triển khai lập dự án đầu tư xây
dựng công trình. Song song với viê ̣c triển khai lâ ̣p dự án đầu tư nêu trên, thực hiê ̣n ý kiến chỉ đạo
của Bô ̣ GTVT, Cục ĐSVN và JICA đã ký kết Biên bản ghi nhớ hợp tác nghiên cứu đầu tư Dự án
theo hình thức đối tác công tư (PPP) để có một nghiên cứu sâu sắc về Dự án nhằm khuyến khích
các nhà đầu tư tư nhân (đặc biệt là các nhà đầu tư Nhật Bản) tham gia vào Dự án. Ngày
13/5/2013, Đoàn nghiên cứu JICA đã gửi hồ sơ báo cáo cuối kỳ của dự án cho Cục ĐSVN, Cục
ĐSVN đã chỉ đạo Tư vấn trong nước nghiên cứu, cập nhật vào hồ sơ dự án do Việt Nam thực
hiện. Ngày 26/12/2013 Cục Đường sắt Viê ̣t Nam đã trình Bộ GTVT thẩm định, chấp thuận hồ sơ
Dự án, với nội dung chính sau: Dự án đầu tư xây dựng công trình “Đường sắt đô thị Hà Nội,
tuyến Nam Hồ Tây- Ngọc Khánh- Láng – Hòa Lạc – Ba Vì” nằm trên địa bàn 7 quận/huyện: Ba
Đình, Đống Đa, Cầu Giấy, Từ Liêm, Hoài Đức, Quốc Oai, Thạch Thất có chiều dài tuyến
38,43km, chia làm 2 giai đoạn:

+ Giai đoạn 1: chiều dài tuyến chính 15km, trong đó 6,215km đi ngầm và 8,785km đi trên
mặt đất và trên cao (điểm đầu Ngã tư Văn Cao, Liễu Giai, Nguyễn Chí Thanh, Trần Duy Hưng,
Đại Lộ Thăng Long, điểm cuối tại xã Song Phương). Depot 1 đặt tại xã Sơn Đồng huyện Hoài
Đức khoảng 18ha. Khổ đường sắt đôi 1435mm. Hệ thống nhà ga: 5 ga ngầm (ga 1-5), 5 ga trên
mặt đất (ga 6,7,9,10,11) và 1 ga trên cao (ga 8). Phương tiện vận tải: 5 đoàn tầu 4 toa Tc-M-M-
Tc (2020)

+ Giai đoạn 2: Chiều dài tuyến chính 23,43km, bắt đầu xã Song Phương tuyến đi trên mặt
đất và đi trên cao trong phạm vi dải phân cách của Đại Lộ Thăng Long và đường cao tốc Hòa
Lạc – Hòa Bình. Depot 2 dự kiến đặt xã Yên Bình và Thạch Hòa, huyện Thạch Thất khoản 9ha.
Hệ thống nhà ga: 6 ga trên mặt đất (ga 12-17). Phương tiện vận tải: 12 đoàn tầu 6 toa Tc-M-M-
T-M-Tc,sau năm 2050 tăng lên 21 đoàn.

Tổng mức đầu tư: 60.272,439 tỷ đồng (giai đoạn 1 là 39,691 tỷ đồng, giai đoạn 2 là 20,582
tỷ đồng). Nguồn vốn đầu tư: Dự kiến theo hình thức hợp tác công tư.

Ngày 07/01/2014, Bô ̣ GTVT có văn bản số 202/BGTVT-KHĐT thông báo viê ̣c dừng
nghiên cứu dự án và đề nghị UBND thành phố Hà Nô ̣i giao cho đơn vị chức năng đến tiếp nhâ ̣n
hồ sơ dự án để tiếp tục nghiên cứu.

Thực hiê ̣n chỉ đạo của UBND thành phố Hà Nô ̣i tại Văn bản số 4920/VP-XDGT ngày
05/8/2014, Ban Quản lý ĐSĐT Hà Nô ̣i đã phối hợp với Cục ĐSVN hoàn thành tiếp nhâ ̣n, bàn
giao hồ sơ dự án tháng 4/2015.
Other projects:

Line 8 (Mai Dich – Ring road 3 – Linh Nam – Duong Xa):

Cấp Quyết định đầu tư: UBND thành phố Hà Nội;

- Chủ đầu tư: Ban Quản lý đường sắt đô thị Hà Nội;
- Theo Quy hođầu chung xây dư: Ban QuảnHà Ng đ Ng xây dư: Ban Quản lý đường sắt đô
thị Hà Nội;̣i tại Văn bản số 4920/VP-XDGT ngaHà Ng xây dư: Ban Quđư N Thh tưưNg Chính
phh phê duyyd tty các QuyyQ đđyy ss 90/2008/QĐ-TTg ngày 09/7/2008 và ss 1259/QĐ-TTg
ngày 26/7/2011 thì Tuy 7/2011 thì thì hì 59/QQ9/Qvà ss
1259/Q/QQ59/QQ259/QQ9/QQ9/QQ259/QQ9/QQ9/QQ259/QQ259/QQ9/Q9/Q/Q, Ban QSơn
Đ/2011 thì thì hì 59/QQ9/Qvà ss
1259/Q/QQ59/QQ259/QQ9/QQ9/QQ259/QQ9/QQ9/QQ259/QQ259/QQ9/Q9/Q/Q, Ban Quản lý
ĐSĐT Hà Nô ̣i đã phối hợp với Cục ĐSVN hoàn thành tiên – kết thúc tại Dương Xá. Sau khi
hoàn thành theo Quy hoo h ss kko nno các khu vvu dân cư và khu đô thh llh cch Hà NN N các
quu /huyyq Hoài Đ thhthhthh thhhoo ho ho8km là tuy yq q q yq yq yq yq yq yq q ía Nam
Sông Hồng), bắt đầu từ uản lý ĐSĐTrì, Pháp Vân... qua đường cao tốc Hà Nội – Hải Phòng.
Hi thhthh thhhoo ho ho8km là tuy yq q q yq yq yq yq yq yq q ía Nam Sông
Hồng), bắt đầu từ uản lý ĐSĐTrì, Pháp Vân... qua đường cao tốc Hà Nội – Hải Phòng.kết thúc
tại Dương Xy ban hợp tác giữa hai Chính phủ Việt Nam – Hàn Quốc đã thống nhất đưa dự án
vào danh sách tài trợ.
Di thhthh thhhoo ho ho8km là tuy yq

Thực hiện đầu tư: 2018-2025.

2. Current situation of urban railway network in HCMC

2.1. General information

Like Hanoi, the transport system planning in Ho Chi Minh City was also decided in a decision
issued by the Prime Minister in January, 2007 entitled “Transport Development Plan up to 2020
and Vision Afterwards” (No. 101/2007/QĐ-TTg). According to this plan, Ho Chi Minh City is
going to have six urban railway lines and three trams/ LRT/ monorail lines. In 2013, Decision
no. 568/QD-TTg was made to replace Decision no. 101/QD-TTg. This new plan defines two
more urban railway lines, i.e. Line 3b and Line 4b, resulting in 8 urban railway lines in this city.
 Plan of urban railway system in HCMC in Decision 568/QD-TTg

Summary of Urban Railway Lines in Ho Chi Minh City

Alignment Authority for

Line Length Status
Construction
Line 1 19.7 km By Japanese ODA, under Ho Chi Minh
construction City People’s
Committee
(HCMC-PC)
Line 2 48km On-going by Germany, HCMC-PC
ADB and other donor’s
loan for the first section
(11.3km)
Line 3A 19.8 km No specific study. HCMC-PC
Line 3B 12.1 km No specific study. HCMC-PC
Line 4 36.2 km No specific study. HCMC-PC

Line 4B 5.2km No specific study HCMC-PC

Line 5 26 km Under study, by various HCMC-PC

donors: ADB, Government
of Spain, EIB
Line 6 5.6 km No specific study. HCMC-PC
LRT-1 12.8 km No specific study. HCMC-PC

Tramwa
y
LRT-2 27.2 km No specific study. HCMC-PC

Monorail
LRT-3 16.5 km No specific study. HCMC-PC

Monorail

2.2. Current situation

Line 1: This line starts from Ben Thanh market, which is an icon of modern Ho Chi Minh City
as commercial center in Vietnam, and end in Suoi Tien to the northeast of this city. This line will
include 2.2km of underground out of 19.6km of total length, the rest is elevated. This project is
also implemented by Japanese ODA in accordance with Loan agreement signed in March 2007
by two Governments of Vietnam and Japan. The construction was started on August 28, 2012.
The mock-up of rolling stock was open for community opinions in one month from middle of
March to April of 2015. The purpose of this activity is to collect opinions of the community
before approving the design and starting the mass production of rolling stock for this line,
according to MAUR (Management Authority for Urban Railways, Ho Chi Minh City).On June 4,
2015, the first span of this line was erected. Since the construction in Vietnam always faced
various difficulties such as land acquisition, procedures, etc, Ho Chi Minh City plans to start
partial operation of this line from 2018and the whole line is targeted to start in 2020.

Line 2: Phase 1 of this line will be mostly underground, which is 11.3km with 9.3km of
underground. Various donors, including ADB, KfW (German Development Bank), EIB, have
been supporting this project. This line is expected to start its service in 2020but it seems to be
prolonged at least 2 years. The extension part (phase 2) is under studying.

Line 5: This would be also a newly constructed underground line in Ho Chi Minh City. So far,
ADB, the Government of Spain and EIB committed to fund the first phase of this line. It is still
under studying, and expected to commence the operation in 2018 but this target is impossible to
achieve already since the project is not started yet as of the middle of 2015.
Chapter 3. Possibilities of Railway market

1. Current railway market

…

2. O&M business

2.1. Urban railway operation in Hanoi and HCMC

Commencing management of urban railway operation

Line 2A in Hanoi will be the first urban railway line ever to start its operation in Vietnam.
According to the Law of Railway in Vietnam, urban railways is under the authority of local
governments, thus, Hanoi City will take over this line after its completion of construction by
Ministry of Transport, and it needs to prepare for the management of the operation. Hanoi City
started to study on the establishment of urban railway operation and maintenance organization in
2010 by itself and the support of Japanese Government. After 4 years of studying, Hanoi Metro
Company (state-owned) was established in November, 2014.

Similarly to Hanoi City, Ho Chi Minh City has been taking into account of studying on the
formation of an operation company for Ho Chi Minh City’s urban railway lines. However, the
schedule for operation commencement in Ho Chi Minh City is later than this in Hanoi City, thus,
it is now still under studying and getting acceptance of competent authorities for this
establishment.

2.2. Operation and maintenance of VNR

- Management and maintenance of railway infrastructure: Allocation of management and

maintenance of railway infrastructure in Vietnam railway, development plan

- Fare policy: fare structure, fare types, subsidies, etc.

2.3. Non-rail business of VNR

2.4. Financial situation of VNR

2.5. Background of privatization of VNR

1. Plan on re-structuring Vietnam Railways in the period of 2012-2015

The Plan on re-structuring Vietnam Railways in the period of 2012-2015 was approved in
Decision no. 198/QD-TTg dated January 21, 2013 by the Prime Minister. The objective of this
Plan is to ensure a suitable structure in Vietnam Railways, focusing on operation and
maintenance of national railway system, limiting its participation in investment projects – which
are now all under Railway Project Management Unit under Ministry of Transport (PMU-Rail).

According to this Plan, the structure in VNR has been arranged as the following:

a). Organizations directly under Mother company – Vietnam Railway Corporation (VNR)
include:

- Office and functional departments

- Railway operation controlling center

- Railway traction company

b). Enterprises in which VNR holds 100% of their charter capital:

- Ha Hai railway management one member limited liability company (LLC)

- Ha Thai railway management one member limited liability company

- Yen Lao railway management one member limited liability company

- Ha Lang railway management one member limited liability company

- Vinh Phu railway management one member limited liability company

- Ha Ninh railway management one member limited liability company

- Thanh Hoa railway management one member limited liability company

- Nghe Tinh railway management one member limited liability company

- Quang Binh railway management one member limited liability company

- Binh Tri Thien railway management one member limited liability company

- Quang Nam – Da Nang railway management one member limited liability company

- Nghia Binh railway management one member limited liability company

- Phu Khanh railway management one member limited liability company

- Thuan Hai railway management one member limited liability company

- Sai Gon railway management one member limited liability company

- Hanoi Railway Signaling and Telecommunication one member limited liability company

- Bac Giang Railway Signaling and Telecommunication one member limited liability company

- Vinh Railway Signaling and Telecommunication one member limited liability company

- Da Nang Railway Signaling and Telecommunication one member limited liability company

- Sai Gon Railway Signaling and Telecommunication one member limited liability company

- Di An Railway One member limited liability company

- Hanoi passenger transport One member limited liability company

- Sai Gon passenger transport One member limited liability company

c) Enterprises in which VNR holds 50% to 65% of their charter capital

- Hai Phong railcar JSC

- Railway freight transport JSC

d) Enterprises in which VNR holds less than 50% of their charter capital

- Railway construction corporation JSC

- Construction 6 JSC

- Investment and construction 3 JSC

- Transport investment and construction consultant JSC (TRICC)

- Railway trading and traveling company (RATRACO)

- Dong Mo stone JSC

- My Trang stone JSC

- Railway Signal telecommunication JSC

- Da Nang construction JSC

- Road and bridge engineering and mechanical JSC

- Hanoi Railway tourist service JSC

- Railway printing JSC

- Sai Gon railway printing JSC

- Railway Construction and Investment consultant JSC

- Vinh Nguyen JSC

- Transport investment and construction JSC

- Railway equipment import – export JSC

- Sai Gon Railway materials JSC

- Hanoi construction investment JSC

- Construction 2 JSC

- Construction and investment consultant 1 JSC

- Da Nang railway mechanical JSC

After this Plan’s approval, VNR’s Party Committee issued Resolution no. 12/NQ-DU on July 22,
2014 continuing the execution of Plan on re-structuring VNR. Accordingly, Hanoi passenger
railway transport one member limited liability company and Sai Gon passenger railway transport
one member limited liability company (above) were transferred to JSC in 2015.

In addition, Gia Lam Rolling stock factory was separated from Hanoi passenger railway
transport one member to become Gia Lam Rolling Stock one member limited liability company.

2. Some companies’ IPO

In implementation of the Plan and Resolution of VNR, some IPO have been carried out as
following:

No. Name of Company IPO timing

1 Ha Hai railway management one member limited liability Nov. 2015
company

2 Ha Thai railway management one member limited liability Nov. 2015

company

3 Yen Lao railway management one member limited liability Nov. 2015
company
4 Ha Lang railway management one member limited liability Nov. 2015
company

5 Vinh Phu railway management one member limited liability Nov. 2015
company

6 Ha Ninh railway management one member limited liability Nov. 2015

company

7 Thanh Hoa railway management one member limited liability Nov. 2015
company

8 Nghe Tinh railway management one member limited liability Nov. 2015
company

9 Quang Binh railway management one member limited liability Nov. 2015
company

10 Binh Tri Thien railway management one member limited Nov. 2015
liability company

11 Quang Nam – Da Nang railway management one member Nov. 2015

limited liability company

12 Nghia Binh railway management one member limited liability Nov. 2015
company

13 Phu Khanh railway management one member limited liability Nov. 2015
company

14 Thuan Hai railway management one member limited liability Nov. 2015
company

15 Sai Gon railway management one member limited liability Nov. 2015
company

16 Hanoi Railway Signaling and Telecommunication one member Nov. 2015

limited liability company

17 Bac Giang Railway Signaling and Telecommunication one Nov. 2015

member limited liability company

18 Vinh Railway Signaling and Telecommunication one member Nov. 2015

limited liability company
19 Da Nang Railway Signaling and Telecommunication one Nov. 2015
member limited liability company

20 Sai Gon Railway Signaling and Telecommunication one Nov. 2015

member limited liability company

21 Di An Railway One member limited liability company Nov. 2015

22 Hanoi passenger transport One member limited liability Dec. 2015

company

23 Sai Gon passenger transport One member limited liability Dec. 2015
company

24 Transport investment and construction consultant JSC (TRICC) Dec. 2015

25 Road and bridge engineering and mechanical JSC Jan. 2016
26 Construction and investment consultant 1 JSC Jan. 2016
27 Gia Lam Rolling Stock Limited Liability Company Nov. 2015

2.6. IPOs of Hanoi Railway Company and Sai Gon Railway Company

(a) Hanoi passenger railway transport one member limited liability company:

According to the privatization plan, total charter capital after equitization accounts for over 80
million shares. The State continues to hold 60% of the total charter capital, more than 11.3
million shares will be distributed to strategic investors while, 9.2 million shares will be reserved
for employees.

On December 10, 2015, the IPO for Hanoi Railway Company has been held. There are 10
private investors purchased under the average purchased price of 10,032VND per stock, in total,
the number of purchased stock was 247,000 out of 11,378,669 stocks offered.

After the IPO, the structure of charter capital of the company is as follows:

- The State owns 73,352,196 stocks, equivalent to 91.62% charter capital.

- Employees hold 6,519,774 stocks, equivalent to 8.15% charter capital.

- 187,000 stocks, equivalent to 0.23% charter capital was sold in public offering.

(b) Sai Gon passenger railway transport one member limited liability company
According to the plan, Saigon Railways offered 7,210,600 million shares, equivalent to 14.33%
of its charter capital.

At the IPO of Sai Gon passenger railway transport one member limited liability company on
December 7, 2015, 100% stocks have been sold out.

There are 20 private investors joining the auction and purchased 7.83 million stocks in total.
Accordingly, 20 investors have become stockholders of Railway Sai Gon by average price of
each stock is 10,016VND, equivalent to 72.2 billion VND.

After equitization, Saigon Railways has the charter capital of 503.1 billion VND, 60% of which
owned by the State, 11.34% by employees, 14.33% by strategic investors and the remaining sold
to the public.
Chapter 4. Recommendations
Appendix 1: Financial Statement of VNR as of 31 December 2014
Financial Statement for the year ended 31 December 2014
BALANCE SHEET
As at 31 December 2014
Form B01-DN
Unit: VND
ASSETS Codes Notes 31/12/2014 1/1/2014 RESOURCES Codes Notes 31/12/2014 1/1/2014
A. CURRENT ASSETS 100 2,280,894,124,494 5,069,335,545,977 A. LIABILITIES 300 2,928,668,941,299 4,730,894,618,949
I. Cash and cash e quivalent 110 V.01 1,438,854,289,066 908,882,048,171 I. Current liabilities 310 1,543,151,017,507 2,073,477,932,954
1. Cash 111 1,037,964,177,955 908,882,048,171 1. Short term borrowings 311 V.12 298,086,397,567 251,580,975,463
2. Cash equivalent 112 400,881,111,111 - 2. Payable to suppliers 312 178,768,102,734 1,049,028,577,775
II. Short term financial inve stments 120 11,000,000,000 5,500,000,000 3. Advances from customers 313 37,616,949,786 7,750,986,486
1. Short term investments 121 V.02 11,000,000,000 5,500,000,000 4. Statutory obligations 314 V.13 81,031,607,537 45,403,143,513
2. Provision for impairment of short term investments 129 - - 5. Payables to employees 315 648,485,740,714 361,030,033,324
III. Short-term re ceivable s 130 485,911,695,177 3,826,499,332,935 6. Accrued expenses 316 V.14 17,600,367,283 18,691,595,751
1. Receivables from customers 131 113,983,669,695 99,443,342,300 7. Intercompany payables 317 - 91,789,345,181
2. Advances to suppliers 132 31,203,423,713 1,574,776,986,074 9. Other short term payables 319 V.15 159,795,583,455 227,028,990,733
3. Short term intercompany receivables 133 - 1,561,325,213,080 10. Provisions for short term payables 320 - -
5. Other receivables 135 V.03 359,122,886,316 592,738,789,744 11. Bonus and welfare fund 323 121,766,268,431 21,184,284,728
6. Provision for short term doubtful receivables 139 (18,398,284,547) (1,784,998,263) II. Non-current liabilities 330 1,385,517,923,792 2,657,416,685,995
IV. Inventories 140 V.04 324,018,906,935 293,594,161,975 1. Long term payables to suppliers 331 - -
1. Inventories 141 328,545,268,395 298,043,118,969 2. Long term inter-company payables 332 - 780,379,388,464
2. Provisions for devaluation of inventories 149 (4,526,361,460) (4,448,956,994) 3. Other long term payables 333 13,318,360,410 15,191,335,211
V. Other current assets 150 21,118,233,316 34,860,002,896 4. Long term borrowing and debt 334 V.17 1,151,225,673,982 1,735,582,247,133
1. Short term prepaid expenses 151 3,959,685,359 2,701,345,424 6. Provisions for severance allowances 336 - 7,062,388,967
2. Value added tax deductibles 152 530,767,557 10,215,230,289 7. Provision for long term payables 337 - -
3. Taxes and amounts payable to the State budget 154 V.05 2,478,573,925 2,771,454,834 8. Unrealised revenue 338 V.16 220,973,889,400 119,201,326,220
4. Other short term assets 158 14,149,206,475 19,171,972,349 9. Science and Technology development fund 339 - -
B. NON-CURRENT ASSETS 200 3,525,063,417,459 18,213,345,483,803 B. EQUITY 400 2,877,288,600,654 18,551,786,410,831
I. Long te rm receivables 210 715,910,919,407 406,382,923,563 I. Owners' equity 410 V.18 2,457,357,788,061 18,503,045,228,287
1. Receivables from customers 211 - - 1. Owners' contributed capital 411 2,268,000,000,000 2,226,121,677,775
2. Working capital from sub-units 212 - 406,382,923,563 2. Share premium 412 - -
3. Long term inter-company receivables 213 - - 3. Other owners' equity 413 - 6,758,348,542
4. Other long term receivables 218 V.06 715,910,919,407 - 7. Investment and development fund 417 68,810,830,539 37,934,431,004
5. Provision for long term doubtful receivables 219 - - 8. Financial reserves 418 3,086,740,127 8,694,713,329
II. Fixe d asse ts 220 2,235,200,786,271 17,477,878,831,063 9. Other owner’s funds 419 - 10,579,336,909
1. Tangible fixed assets 221 V.07 1,723,669,199,939 1,840,536,641,332 10. Retained earnings 420 110,044,991,090 167,569,507,674
- Cost 222 8,150,656,404,249 6,448,524,505,737 11. Resource of capital for infrastructure investment 421 24,443,179 16,045,387,213,054
- Accumulated depreciation 223 (6,426,987,204,310) (4,607,987,864,405) 12. Business arrangements support fund 422 7,390,783,126 -
2. Leasing assets 224 - - II. Other funds 430 419,930,812,593 48,741,182,544
3. Intangible fixed assets 227 V.08 872,641,948 2,963,338,143 1. Other funds 432 419,930,812,593 2,978,591,211
- Cost 228 6,427,729,998 8,119,201,755 2. Budget resources used to acquire fixed assets 433 - 45,762,591,333
- Accumulated depreciation 229 (5,555,088,050) (5,155,863,612) TOTAL LIABILITIES AND OWNERS' EQUITY 440 5,805,957,541,953 23,282,681,029,780
4. Construction in progress 230 V.09 510,658,944,384 15,634,378,851,588
III. Investment property 240 1,254,258,536 1,304,609,504
- Cost 241 2,014,038,720 2,014,038,720
- Accumulated depreciation 242 (759,780,184) (709,429,216)
IV.Long term financial investme nts 250 V.10 557,775,054,512 318,629,336,156
1. Investment in subsidiaries 251 336,108,311,352 85,771,410,519
2. Long term investments in associates 252 236,950,686,450 226,007,406,666
3. Other long term investments 258 9,473,092,068 6,850,518,971
4. Provision for impairment of long term investments 259 (24,757,035,358) -
V. Other non-curre nt assets 260 14,922,398,733 9,149,783,517
1. Long term prepaid expenses 261 V.11 9,758,198,733 3,929,083,517
3. Other non-current assets 268 5,164,200,000 5,220,700,000
TOTAL ASSETS 270 5,805,957,541,953 23,282,681,029,780
 Financial Statement for the year ended 31 December 2014
INCOME STATEMENT
For the fiscal year ended 31 December 2014
Form B02-DN
Unit: VND
Items Code Note 2014 2013
1. Revenues 01 VI.01 5,533,870,039,163 4,980,627,386,134
2. Revenue deductions 02 VI.02 177,052,897,164 135,544,297,649
3. Net revenue 10 VI.03 5,356,817,141,999 4,845,083,088,485
4. Cost of goods sold 11 VI.04 4,471,608,952,673 4,054,222,696,542
5. Gross profit 20 885,208,189,326 790,860,391,943
6. Financial income 21 VI.05 202,676,513,707 71,564,059,776
7. Financial expenses 22 VI.06 121,562,653,023 164,121,857,811
In which: Interest expense 23 98,233,265,263 90,038,391,219
8. Selling expenses 24 761,314,013 1,183,934,501
9. General & administration expenses 25 917,346,090,268 650,430,702,787
10. Operating profit 30 48,214,645,729 46,687,956,620
11. Other income 31 115,364,214,486 42,457,837,593
12. Other expenses 32 55,846,522,154 19,531,899,380
13. Net other income 40 59,517,692,332 22,925,938,213
14. Net profit before tax 50 107,732,338,061 69,613,894,833
15. Current corporate income tax 51 VI.07 14,101,938,595 5,353,537,449
16. Deferred corporate income tax 52 - -
17. Profit after tax 60 93,630,399,466 64,260,357,384
 Financial Statement for the year ended 31 December 2014
STATEMENT OF CASHFLOW
(Indirect method)
For the fiscal year ended 31 December 2014
Form B03-DN
Unit: VND
Items Code 2014 2013
I. Cash flow from operating activities
1. Profit before tax 01 107,732,338,061 69,613,894,833
2. Adjustments for
- Depreciation of fixed assets 02 379,604,440,779 353,930,630,135
- Provisions 03 41,447,726,108 1,609,765,086
- Unrealised foreign exchange gain (loss) 04 (65,741,808,937) 17,058,120,975
- Profits (losses) from investing activities 05 (136,933,260,324) (71,199,251,762)
- Interest expenses 06 98,233,265,263 90,038,391,219
3. Operating income before changes in working capital 08 424,342,700,950 461,051,550,486
- Increase (decrease) in receivables 09 1,034,031,857,915 (829,276,753,238)
- Increase (decrease) in inventories 10 (30,502,149,426) 61,451,736,962
- Increase (decrease) in payables (other than interest, corporate income tax) 11 (595,197,615,552) 517,928,359,181
- Increase (decrease) in prepaid expenses 12 (7,087,455,151) 45,291,312,837
- Interest paid 13 (97,145,215,102) (88,035,442,479)
- Corporate income tax paid 14 (7,490,324,078) (5,438,366,345)
- Other proceeds from operating activities 15 291,721,340,712 243,437,480
- Other payments for operating activities 16 (23,116,639,480) (16,014,807,282)
Net cash flow from operating activities 20 989,556,500,788 147,201,027,602
II. Cash flow from investing activities
1. Payment for purchases or construction of fixed assets and other long term assets 21 (253,979,547,876) (2,816,592,461,729)
2. Proceeds from fixed assets and other long term assets disposal 22 285,123,792 261,650,891
3. Loans to and payments for purchase of debt instruments of other entities 23 (261,500,000,000) (746,300,000,000)
4. Collections from borrowers and proceeds from disposal of debt instruments of other
24 256,000,000,000 701,300,000,000
entities
5. Payments for investments in other entities 25 - (1,500,000,000)
6. Proceeds from disposal of investments in other entities 26 20,324,200,000 50,000,000,000
7. Interests and dividends received 27 135,600,753,931 21,660,197,018
Net cash flows from investing activities 30 (103,269,470,153) (2,791,170,613,820)
III. Cash flow from financing activities
1. Proceeds from share issuance, capital contribution 31 6,389,555,000 2,986,951,113,377
2. Capital redemption and payments for purchase of treasury shares 32 - (15,679,600,000)
3. Drawdown of borrowings 33 5,920,938,098 226,172,436,317
4. Repayments of borrowings 34 (368,633,428,644) (376,591,237,475)
5. Repayments of financial leasing 35 - (115,629,110)
6. Dividents paid 36 - (58,564,345)
Net cash outflows from finaning activities 40 (356,322,935,546) 2,820,678,518,764
Net increase/ decrease in cash 50 529,964,095,089 176,708,932,546
Cash and cash equivalents at beginning of year 60 908,882,048,171 732,173,115,625
Effect of foreign exchange differences 61 (854,194) -
Cash and cash equivalents at end of year 70 1,438,845,289,066 908,882,048,171