Vietnam Railways Corporation Achieves Record Semi-Annual Revenue, But Still Faces Financial Challenges

Vietnam Railways Corporation has achieved a record semi-annual revenue of over VND 4,500 billion this year, representing an increase of more than 10% compared to the same period in 2023. The company’s daily revenue averaged nearly VND 25 billion, and they aim to earn VND 6,258 billion by the end of the year. Despite facing challenges such as landslides at the Bai Gio and Chi Thanh tunnels, which caused congestion on the Hanoi – Ho Chi Minh City railway line, VNR has put into operation specialized train pairs and implemented solutions to increase international freight transport output.

VNR is made up of 25 subsidiaries, 17 affiliated units, and 8 joint ventures and associates. The company’s revenue for the first half of the year was already nearly completed at 72%, with passenger transport output increasing by nearly 21% compared to the same period last year. During Tet alone, the railway industry sold over 650,000 train tickets and earned nearly VND 401 billion, which is higher than the same period last year.

However, despite these achievements, Vietnam Railway Corporation still faces significant financial challenges with an accumulated loss of more than VND 2,080 billion by the end of 2023. This loss is one and a half times higher than its equity. In order to address these challenges and improve its financial situation, VNR has put into operation specialized train pairs such as the “heritage connection” train on the Hue – Da Nang route and charter trains with customized itineraries and services. Additionally, they have implemented solutions to increase international freight transport output such as exploiting more Vietnam – China intermodal transport products.

Despite these efforts by VNR to address its financial challenges and improve its performance overall, there are still ongoing issues that need to be addressed in order for it to achieve long-term stability and profitability.