Vietnam Railways eyes profit in 2023
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Train operator Vietnam Railways expects to earn a profit this year after posting losses in three previous years due to the impact of Covid-19.
The company predicts a post-tax profit of VND3 billion ($127,960) and a revenue of over VND6.5 trillion.
In the first quarter this year subsidiary Hanoi Railways served over 800,000 passengers and recorded VND300 billion in revenues. Both figures went up 200% year-on-year.
Its other major subsidiary, Saigon Railways, also saw revenues rise 147% to VND360 billion and passenger numbers grow 136% to 660,000.
Vietnam Railways attributed the rise to increasing demand and discounts of 50%-65% during days with low bookings. Other types of discounts for groups of four and large tourist groups also contributed to higher ticket sales.
Vietnam Railways started to see signs of recovery last year after two years of difficulties due to Covid-19. It saw revenue rising 14% to VND7.7 trillion, and saw losses dwindling from VND1.33 trillion in 2020 to VND130 billion last year.
Questions & Answers
Q.What caused Vietnam Railways to experience financial losses in the three preceding years?
What caused Vietnam Railways to experience financial losses in the three preceding years?
The company reported losses in the three years prior to 2023, which were attributed to the significant impact of the Covid-19 pandemic on its operations and passenger numbers.
Q.What strategies did Vietnam Railways use to increase passenger numbers and revenues?
What strategies did Vietnam Railways use to increase passenger numbers and revenues?
The company offered discounts ranging from 50% to 65% on days with low bookings. Also, it introduced special discounts for groups of four and large tourist groups to boost ticket sales.
Q.How much revenue did Saigon Railways achieve in the first quarter of this year?
How much revenue did Saigon Railways achieve in the first quarter of this year?
Saigon Railways recorded revenues of VND360 billion in the first quarter of this year. This figure represented a 147% increase compared to the same period in the previous year.
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