Railways become profitable after 3 years.

Vietnam Railways Corporation (VNR) achieved a profit of VND 94.8 billion in 2023, after three consecutive years of operating at a loss.

According to the 2023 business performance report, Vietnam Railways Corporation (consolidated) achieved revenue of VND 8,503 billion and after-tax profit of VND 94.8 billion. Employees in the industry earned an average monthly income of VND 9.5 million, reaching 105% compared to the same period.

VNR has experienced three consecutive years of declining revenue and negative profits. It lost over 1,300 billion VND in 2020, 654 billion VND in 2021, and 111 billion VND in 2022.

Specifically, the parent company - Vietnam Railways Corporation - achieved revenue of VND 6,247 billion, equivalent to 113% of the same period last year and reaching 96% of the plan; after-tax profit reached VND 4.5 billion, while in 2022 it incurred a loss of VND 173 billion.

According to VNR's leadership, the positive business results are due to the gradual recovery of passenger transport by rail. Last year, VNR transported 6.1 million passengers, equivalent to 135% of the same period the previous year.

The high-quality SE19 train at Hanoi station, featuring airline-style meals. Photo: Giang Huy — The high-quality SE19 train at Hanoi station, featuring airline-style meals. Photo: *Giang Huy*

The increase in passenger numbers and revenue is due to the company's implementation of attractive ticket pricing policies during off-peak days, offering discounts of up to 50% on tickets depending on the class of seat, developing train tours, and introducing high-quality trains. Many other promotional programs, such as buy three tickets get one free, and discounts for purchasing entire cabins or carriages, also contributed to the success.

However, freight transport volume decreased sharply, reaching 4.6 million tons, equivalent to 81% of the same period last year. Direct revenue from transportation reached VND 3,973 billion, equivalent to 107% of the same period last year.

In 2024, the management board identified that business operations would continue to face significant competitive pressure in passenger transport from air and road routes, and a reduction in freight transport rates. Vietnam Railways Corporation set a revenue target of VND 6,258 billion, with transport volume increasing by approximately 7.3%; and after-tax profit of VND 5 billion, an 11% increase compared to the same period.

Vietnam Railways Corporation (VNR) comprises 25 subsidiaries and 17 joint ventures and affiliated companies, with a total workforce of 22,041 people. VNR is currently entrusted by the State with managing a 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.

Duy

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