Tuesday,  Nov 24, 2020,05:36 (GMT+7) 0 0
VNR estimates this year's losses at VND2 trillion due to Covid-19, storms
The Saigon Times
Tuesday,  Oct 27, 2020,11:01 (GMT+7)

VNR estimates this year's losses at VND2 trillion due to Covid-19, storms

The Saigon Times

A train operated by Vietnam Railways Corporation stops at Hanoi station. The firm has estimated its losses this year at some VND2 trillion - PHOTO: VNA

HCMC - Vietnam Railway Corporation (VNR) has estimated its losses this year at some VND2 trillion due to the impact of the Covid-19 pandemic and the recent storms.

Vu Anh Minh, chairman of VNR’s member council, said the corporation has been experiencing the toughest time in history, Vietnamplus news site reported.

According to a report on the firm’s performance in the January-September period, the firm transported more than 3.6 million tons of cargo, equivalent to 99% of the volume seen during the same period last year. However, it served only over three million passengers, equal to 45.7% year-on-year.

As a result, its revenue plunged nearly VND1.2 trillion or 34.2%.

For the whole year, the corporation set its consolidated revenue target at nearly VND6.5 trillion, or 77% of the figure recorded last year.

According to Minh, when it comes to competition with airlines, VNR still has advantages in terms of short routes, which have a low flight frequency, such as Hanoi-Quang Binh, Hanoi-Lao Cai and HCMC-Nha Trang.

As for plans for the following years, Minh said the railway sector could recover in the next three to four years at the earliest as the developments of the Covid-19 pandemic are unpredictable and the execution of a VND7-trillion project to upgrade the Hanoi-HCMC railway will certainly reduce train services.

Minh affirmed that VNR would coordinate with the investor to execute the project at the fastest pace, adding that it is expected to be completed by June 30, 2021, but the deadline would be hard to meet.

Amid these difficulties, VNR has enhanced the development of its cargo transport segment.

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