Vietnam Railways unable to shine in 2019

January 06, 2020 | 12:04

(0) user say

Facing stiffening competition and legal barriers, state-owned giant Vietnam Railways reported a fall in revenue in 2019, setting the need for more efficient solutions.

vietnam railways unable to shine in 2019

On January 4 Vietnam Railways (VNR) held a meeting to review the 2019 performance and set tasks for 2020 to increase its operational efficiency.

According to VNR's report, the corporation made a consolidated revenue of VND8.19 trillion ($356.1 million) during the period, equal to that of 2018 but lower than the target by 2.8 per cent.

The corporation's employees' average income was VND9.12 million ($396.5) a month.

In particular, the parent company made a revenue of VND2.39 trillion ($103.9 million), down 9.1 per cent on-year and meeting 97.3 per cent of the annual target.

During 2019, VNR paid more attention to boosting co-operation with state-owned enterprises (SOEs) and private firms in cargo transportation, signing co-operation agreements with tourism service and travel agents, while improving service quality by offering new and high-quality services. Railway safety was controlled and ensured, thus enabling the industry to reduce the number of accidents, deaths, and injuries.

Vu Anh Minh, chairman of VNR, made a speech at the meeting

Vu Anh Minh, chairman of VNR, admitted to having legal barriers in the operation and exploitation of railway infrastructure, while land use and management have negatively impacted the business results.

“To change the situation, it is important to change people’s mindset about the importance of the railway industry in the society. Moreover, legal barriers should also be cleared to support future operations,” Minh noted.

In 2020, VNR aims to further reduce accidents, to implement the 2017-2020 restructuring scheme when it is approved, boost international co-operation, diversify services, and attract private investment in railway infrastructure.

Laying the tracks for local railways

State-owned Vietnam Railways has begun to bet on a new venture with a Chinese giant in a bid to solve an impasse in financial performance. ...

Railway stake sales on track

After the protracted undertaking to attract investors, state-owned railway group Vietnam Railways is struggling to pursue its ambitious divestment plans.

Vietnam Railways signals for growth

Amid the growing trade across the ASEAN bloc, Vietnam’s railway industry is seeking new partnerships to develop the rail network in order to cash in ...

By Bich Thuy

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional