Vinasun confidently announces eight-fold profit thanks to Grab lawsuit

May 03, 2019 | 12:08

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Thanks to winning the lawsuit against Grab, Vinasun expects to reach VND77.1 billion ($3.35 million) in 2019 profit, eight-times as much as in the past years.

vinasun confidently announces eight fold profit thanks to grab lawsuit

The shareholders' meeting of VInasun took place on April 26

This information was announced at the Vinasun shareholders’ meeting in late April. Accordingly, its revenue was forecast to reach VND2.14 trillion ($93 million), up 3 per cent on-year.

The lawsuit took place in late last October and ended in last December with the court awarding VND4.8 billion ($208,695) in compensation to Vinasun.

Vinasun alleged that Grab claims to be a tech firm but is indeed a taxi transport company, hiring a large number of drivers and causing economic damage to Vinasun.

The company’s deputy director general Truong Dinh Quy said, “Operating this huge network of so-called 'driver-partners' is just a smokescreen for Grab to operate as a taxi firm. This, coupled with the large discounts and incentives to attract a large number of driver-partners, has severely affected Vinasun’s operations.”

He claimed the allegedly ‘illegal operations’ of Grab in the country have caused Vinasun to lose around VND42 billion ($1.82 million) in revenue in 2016 and 2017. Vinasun has subsequently requested lump sum compensation.

At the meeting, Vinasun’s leaders said that since Grab first entered Vietnam, it has been constantly developing partly thanks to the lack of policies to supervise its activities in the country. “The lawsuit shows that there are many inequalities between local firms and has made it difficult for the government to supervise Grab and similar firms,” one leader said.

Vinasun’s revenue in the first quarter of 2019 increased to VND534 billion ($23.2 million) from VND498 billion (21.6 million) in the same period last year. Its profit at the same time also hit VND32 billion ($1.39 million), up three times against the first quarter of 2018.

By Hoang Van

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