Vinasun to set target revenue $47 million lower this year

Vinasun forecasts to decline revenue this year

The Management Board of Vietnam Sun Corporation (Vinasun) has just approved the business plan to submit to the annual general shareholders’ meeting on April 27. The corporation continues proposing lower targets in its business plan due to the competition with ride-hailing services.

Accordingly, Vinasun will set the revenue target of VND2.16 trillion ($95.2 million) for 2018, VND1.07 trillion ($47 million) lower than the performance of the two previous years. Net revenue coming from transport services and franchising is expected at VND2 trillion ($88 million), while the remaining revenue will come from the liquidation of assets.

“Foreign firms have joined the taxi maket in Ho Chi Minh City with nearly 30,000 vehicles and strong financial ability, which are causing serious damage to the business operations of Vinasun,” said Dang Thi Phuong Lan, general director of Vinasun.

The company also forecasts the after-tax profit would be halved against last year, falling to VND95 billion ($4.2 million), a nine-year low point.

Vinasun confirms that the major task in 2018 will be to maintain its market share and stay in operation in the face of unfair competitive pressure. The company will expand its fleet by at least 700 cars, develop an electronic payment application, and diversify its business co-operation model. The company also recommended the Ministry of Transport to extend control over ride-hailing services to ensure fair competition.

Last year, Vinasun earned VND2.937 trillion ($130 million) in net revenue from sales and services. The revenue structure has changed significantly as passenger transport has reduced sharply, while franchising rose.

Vinasun’s total assets have decreased by VND370 billion ($16.3 million) to VND2.816 trillion ($124 million). Debts also declined VND450 billion ($19.8 million) as compared to early last year.