The Vietnam Railways Corporation (VNR) has projected losses of more than VND1.2 trillion (US$51.7 million) this year.
|Vietnam Railways Corporation should cooperate with marine and road transportation companies and airlines to develop a master transportation strategy and build a multimodel transport system. |
The company earned a revenue of VND4.08 trillion in January - August, equivalent to just 77.8 per cent of the same period last year and 64.4 per cent of its expected revenue for the full year.
Its subsidiaries are also in difficulties, with Ha Noi Railways projecting a loss of VND410 billion, while Sai Gon Railways is set to lose VND357 billion.
Vu Anh Minh, VNR’s chairman, said that slow innovation coupled with the impact of the COVID-19 pandemic had pushed the railway industry into difficulties unprecedented in more than a century of its history although the company has made efforts to attract passengers and increase revenues in recent years.
VNR was calling for the Government’s supports to overcome the difficulties, Minh said, adding that it could take three to five years for the railway industry to recover.
VNR hopes to be provided with exemptions and reductions in fees for using railway infrastructure, land use fees, extensions of deadlines for debt payment and interest rate cuts.
By 2021, VNR must raise about VND6.8 billion to invest in new train carriages and locomotives to replace degraded ones. The company proposed the deadline for the replacement to be extended as it was facing financial difficulties and had not been provided with preferential loans for these investments.
Nguyen Hoang Anh, Chairman of the Commission for the Management of State Capital at Enterprises which manages VNR, said that the company must work with marine and road transportation companies and airlines to develop a master transportation strategy and build a multimodel transport system.
VNR earned revenue of VND8.38 billion and pre-tax profit of VND180 in 2019.