Vietnam Railways Corporation: Turning Around Losses with Record Semi-Annual Revenue and Upcoming Merger

Vietnam Railways Corporation (VNR) has reported a record semi-annual revenue this year, with an average daily revenue of nearly 25 billion. The company’s 6-month revenue exceeded VND4,500 billion, marking a more than 10% increase compared to the same period in 2023. This revenue is a record for VNR and surpasses the annual revenue for the 2019-2021 period, averaging over VND24.7 billion per day.

For the full year, VNR aims to earn 6,258 billion VND, and they have already completed nearly 72% of this plan after the first half of the year. The company has not disclosed its 6-month profit figures yet. Passenger transport output in the first 6 months increased by nearly 21% compared to the previous year, with significant ticket sales during Tet contributing to the revenue growth.

VNR has introduced specialized train services like the “heritage connection” and the “Da Lat night train journey” to cater to different customer needs. The company is also focusing on increasing international freight transport volumes through various intermodal transport products and transit routes to neighboring countries. However, recent incidents like landslides have caused congestion on some railway lines and additional costs for repairs.

The railway industry in Vietnam continues to evolve, with a focus on enhancing services and increasing revenue streams. Despite these challenges, VNR has managed to turn around its financial performance, recording profits after a period of losses. Last year, the company reported a profit of 77 billion VND, marking a significant improvement.

Looking ahead, Hanoi Railway (HRT) and Saigon Railway (SRT), two largest members of VNR are set to merge after shareholder approval which is expected to further streamline operations and improve efficiency.

Vietnam Railway Corporation manages a vast infrastructure system that spans over 3,143 km and includes fifteen routes passing through thirty-four provinces and cities from North to South.

In conclusion, Vietnam Railways Corporation’s successes despite challenges indicate that it is transforming into a profitable enterprise that will continue to grow in years ahead while improving services and increasing revenue streams for its customers.