Singapore partner pulls out of Vietnam taxi joint venture
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Singaporean transport firm ComfortDelGro has decided to sell its entire stake in the Vietnam Taxi Company to a local company and pull out of Vietnam.
Under a deal it has signed, it will transfer its 70-percent stake in Vinataxi to the HCMC-based Helios Service and Investment Joint Stock Company for VND55 billion ($2.4 million).
Vinataxi was established in 1992 by Vietnamese firm Tracodi and Hong Kong company Tecobest Investment, which sold its share to ComfortDelGro in 2003.
The company reported revenues of VND20 billion and a loss of VND7.6 billion in 2020.
In 2018, ComfortDelGro and another local firm, Savico, would up their joint venture, ComfortDelGro Savico Taxi, unable to cope with the fierce competition from tech-based taxi operators.
According to ComfortDelGro, the Vietnamese market fetched revenues of $500,000 in the first half of this year, or less than 0.1 percent of its total revenues.
Questions & Answers
Q.Which company is acquiring ComfortDelGro's stake in Vinataxi?
Which company is acquiring ComfortDelGro's stake in Vinataxi?
Helios Service and Investment Joint Stock Company, based in Ho Chi Minh City, has signed a deal to acquire ComfortDelGro's 70-percent stake in Vinataxi. The company is a local firm in Vietnam.
Q.What was Vinataxi's financial performance in its most recent reported year?
What was Vinataxi's financial performance in its most recent reported year?
In 2020, Vinataxi reported revenues of VND20 billion. During the same year, the company recorded a loss of VND7.6 billion, indicating a challenging financial period.
Q.Has ComfortDelGro withdrawn from a Vietnamese joint venture before?
Has ComfortDelGro withdrawn from a Vietnamese joint venture before?
Yes, ComfortDelGro previously wound up a joint venture called ComfortDelGro Savico Taxi in 2018 with local firm Savico. This decision was due to intense competition from tech-based taxi operators.
Q.How significant were ComfortDelGro's Vietnamese revenues to its overall business recently?
How significant were ComfortDelGro's Vietnamese revenues to its overall business recently?
ComfortDelGro stated that the Vietnamese market generated revenues of $500,000 in the first half of this year. This amount represented less than 0.1 percent of its total revenues.
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