Railway Industry: Adapting to Attract Customers

Beyond simply transporting passengers, the railway industry aspires to become a connecting service, participating in the supply chain of tourism products and contributing to the economic, cultural, and social development of various regions and localities.

It is this mindset of closely following market demands that has contributed to changing the face of the railway industry, which had long been "labeled" as stagnant and backward.

Art performances on the "Central Vietnam Heritage" train connecting Hue and Da Nang . Photo: Luu Huong

From tourist trains to high-quality trains.

On the evening of July 1st, 2025, Ms. Nguyen Thanh Binh (Vinh Hung Ward, Hanoi) went to the Vietnam Railways Corporation (VNR) online ticket sales website to buy tickets for her family of four to experience the Hoa Phuong Do tourist train on the Hanoi - Hai Phong route for the weekend (July 5th, 2025). However, all the VIP carriages with 34 seats, designed in the Indochina style, of trains HP1, LP3, and LP5 (priced at 350,000 VND/ticket) were sold out. Only the air-conditioned soft-seat carriages that can rotate 180 degrees were available at 180,000 VND/ticket.

“Many passengers have shared impressive photos of the VIP carriage with its interior and design completely different from other trains. The carriage has free Wi-Fi, a bar serving one complimentary drink of your choice, and seats that can rotate 180 degrees so passengers can comfortably enjoy the view or socialize, so we definitely had to 'hunt' for tickets to experience it,” shared Ms. Nguyen Thanh Binh.

According to Tran Van Hanh, Director of the Hai Phong Railway Transport Branch, the Hoa Phuong Do (Red Phoenix) tourist train, a collaboration between Vietnam Railways (VNR) and the Hai Phong City People's Committee, officially launched on May 10, 2025. These specialized tourist trains attract customers due to their unique character, coupled with the enthusiasm of many passengers from Hanoi, especially young people, who enjoy traveling to Hai Phong to experience a "food tour." In just 21 days (from the launch date to May 31, 2025), the train made 176 trips, transporting nearly 90,000 passengers and generating nearly 9 billion VND in revenue. Passenger numbers for the Hoa Phuong Do train in particular, and for passenger trains on the Hanoi-Hai Phong route in general, continue to grow well.

Besides the Red Phoenix train, the railway industry has continuously launched cultural and tourism trains connecting to unique destinations, creating a positive effect for domestic and international tourists. A prime example is the "Central Vietnam Heritage" train route connecting Hue and Da Nang. Onboard, passengers can enjoy folk music, Central Vietnam specialties, and admire the scenic route through Hai Van Pass, known as the "most magnificent pass".

From April 2024, the short train route between Da Lat and Trai Mat, named "Da Lat Night Journey," spanning approximately 7km—a remaining section of the rack railway from the French colonial era—was renovated and put into operation. It features vintage carriages, and passengers can enjoy traditional Vietnamese music and artichoke tea. As a result, revenue on this route has nearly doubled compared to before.

Specialized tourist trains, high-quality trains, and regular passenger train routes that are always fully booked, especially on weekends, holidays, and Tet (Lunar New Year), have contributed to the strong growth in passenger volume for the railway industry. In 2024, the number of train passengers reached over 7 million, an increase of 14% compared to 2023. In the first six months of 2025, the number of passengers reached over 3.7 million...

Trains on the Hanoi-Hai Phong route are always crowded on weekends. Photo: Ta Hai

Changing business thinking to align with the market.

For decades, while air and road transport developed rapidly, railways were positioned as the primary mode of transport for low-income individuals, students, and schoolchildren. The dilapidated, outdated train carriages, with their unsanitary conditions and even the dumping of waste directly onto the tracks, became a nightmare for many passengers.

Recognizing the limitations, without complaining or blaming the system, railway officials and employees have been changing their business mindset, closely following market needs, and leveraging the industry's existing advantages to attract passengers.

With the goal of continuously improving service quality, the railway industry has recently implemented a series of solutions such as: diversifying ticket sales methods, applying ticket price reduction policies during off-peak periods; investing in upgrading and renovating carriages to launch high-quality trains; and carrying out renovations and upgrades to railway stations...

VNR also collaborates with localities with tourism potential to design specialized train routes, offering unique cultural and tourism experiences, contributing to enriching the local tourism products. Some train journeys even stop at tourist attractions for visitors to check in and take souvenir photos. Local authorities, for their part, actively handle communication, standardize accommodation and food services at reasonable prices, and ensure the security and safety of passengers.

According to Do Van Hoan, Chairman of the Board of Directors of Vietnam Railway Transport Joint Stock Company, recent railway transport business policies have been extremely flexible, with various ticket prices based on seating location, daily fares, monthly passes, and group tickets. The quality of service and equipment on trains and at stations has improved significantly compared to the past, thus attracting more and more passengers.

“VNR is aiming to develop transportation products that are not just destinations, but train experiences, travel experiences to promote the image of the country. The train can become a mobile check-in point, the station a destination of culture and heritage... The railway wants to become a connecting service, participating in the supply chain of tourism products, contributing to the economic, cultural, and social development of regions and localities,” said VNR General Director Hoang Gia Khanh.

Recently, Lonely Planet travel guide ranked Vietnam's Thong Nhat railway line at the top of its list of the 24 best train journeys in the world for 2025. This serves as motivation for the railway industry to continue striving to improve service quality and attract more passengers.

Source: https://hanoimoi.vn/nganh-duong-sat-thay-doi-de-hut-khach-707863.html