Railway escapes loss after 3 years

Vietnam Railways Corporation (VNR) achieved a profit of VND94.8 billion in 2023, after 3 consecutive years of business losses.

According to the 2023 production and business performance report, Vietnam Railways Corporation (consolidated) achieved revenue of VND 8,503 billion, profit after tax reached VND 94.8 billion. Workers in the industry have an average income of VND 9.5 million per month, reaching 105% over the same period.

VNR has experienced 3 consecutive years of declining revenue and negative profits. In 2020, it lost more than 1,300 billion VND, in 2021 it lost 654 billion VND and in 2022 it lost 111 billion VND.

The parent company - Vietnam Railway Corporation alone achieved revenue of VND 6,247 billion, equal to 113% of the same period and 96% of the plan; profit after tax reached VND 4.5 billion while in 2022 it lost VND 173 billion.

According to VNR leaders, the positive business results are due to the gradual recovery of passenger transport by rail. Last year, VNR transported 6.1 million passengers, equal to 135% of the same period last year.

High-quality train SE19 at Hanoi station with airline meals. Photo: Giang Huy — High-quality train SE19 at Hanoi station with airline meals. Photo: *Giang Huy*

The increase in the number of passengers and revenue is due to the company applying a ticket price policy to attract demand on low days, reducing ticket prices by up to 50% depending on seat type, exploiting train tours, and putting into operation high-quality trains. Many other promotional programs such as buying three tickets and getting one free, discounts when buying an entire room or entire carriage.

However, freight transport output decreased sharply, reaching 4.6 million tons, equal to 81% of the same period. Direct revenue from transport reached VND3,973 billion, equal to 107% of the same period.

In 2024, the Board of Directors determined that production and business activities will face many competitive pressures in passenger transport from air and road routes, reducing freight rates. Vietnam Railways Corporation sets a revenue target of VND 6,258 billion, of which transport output increases by about 7.3%; profit after tax reaches VND 5 billion, up 11% over the same period.

Vietnam Railway Corporation consists of 25 subsidiaries, 17 joint ventures and associates with a total workforce of 22,041 people. VNR is assigned by the State to manage the railway infrastructure system with a total length of 3,143 km, including 15 railway lines passing through 34 provinces and cities from North to South.

Mr. Duy

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