Vietnam Railways Corporation Surpasses Half-Year Revenue Records, Improves Financial Performance Amid Challenges

Vietnam Railways Corporation (VNR) has reported a record-breaking semi-annual revenue of over VND4,500 billion this year, with an average daily revenue of nearly 25 billion. At a recent conference, VNR announced that its 6-month revenue exceeded the annual revenue for the 2019-2021 period, averaging over VND24.7 billion per day.

The railway industry in Vietnam has faced challenges due to recent incidents like landslides, causing congestion on some railway lines and additional costs for repairs. However, 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.

VNR is focusing on increasing international freight transport volumes through various intermodal transport products and transit routes to neighboring countries. The company has introduced specialized train services like the “heritage connection” and the “Da Lat night train journey” to cater to different customer needs. 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.

Looking ahead, Hanoi Railway (HRT) and Saigon Railway (SRT), the two largest members of VNR, are set to merge after shareholder approval. This merger is expected to further streamline operations and improve efficiency in the railway industry in Vietnam. The focus on enhancing services and increasing revenue streams will continue as VNR continues to manage its vast infrastructure system that spans 3,143 km and includes 15 routes passing through 34 provinces and cities from North to South.