ComfortDelGro sees plunge in revenue in Vietnam

March 27, 2019 | 15:49

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After suspending the operations of its joint venture in Vietnam, ComfortDelGro, one of the leading transport companies in Singapore, reported a decrease of 50 per cent in its revenue and assets from Vietnam.

ComfortDelGro sees plunge in revenue in Vietnam (Source:Straiststimes)

ComfortDelGro has published its financial statement for 2018. Accordingly, its revenue drawn from the Vietnamese market was $3.3 million in 2018, only half of the figure in the previous year and accounting for only 1 per cent of the group’s total revenue.

By the end of 2018, ComfortDelGro’s total assets, including vehicles and equipment, were valuated at approximately $5 million.

ComfortDelGro did not disclose the reason for the plunge in business results. However, the closure of the joint venture has certainly contributed.

Earlier in March 2018, ComfortDelGro Savico Taxi, a joint venture with Saigon General Services Corporation (Savico), announced suspending operations. The move came after the operations of several traditional taxi firms were impacted by Uber and Grab.

According to Savico, the purpose of ComfortDelGro Savico Taxi’s decision is to look for other business opportunities as well as safeguard the capital that Savico and ComfortDelgro contributed to the joint venture.

Previously, Savico released that ComfortDelGro Savico Taxi faced difficulties in maintaining its operations due to the competition with Uber and Grab.

According to Savico’s 2017 financial report, the taxi joint venture had total assets of VND92 billion ($4 million), however, its after-tax profit was VND235 million ($10,217) only. Previously, in 2016, its pre-tax profit was VND4.1 billion ($180,000), equalling 53 per cent of its plan for the whole year.

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