Vietnam Railways posts first H1 loss in a decade

VnExpress | Dat Nguyen Saturday | 08/15/2020 08:52

A conductor enters a train in the northern province of Lao Cai, February 15, 2020. Photo by VnExpress/Giang Huy.

The Vietnam Railways Corporation (VNR) has posted a H1 pre-tax loss of VND304 billion ($13 million) this year, the first such instance in a decade.

The loss compares to a pre-tax profit of VND165 billion in the same period last year. Revenues in the period fell 40 percent to VND2.79 trillion.

The company had earlier forecast a loss of VND1.39 trillion for the year as the number of passengers plunged 54 percent to two million in the first half, primarily as a result of the Covid-19 pandemic.

VNR has suspended several train routes this year due to low demand. It has announced plans to increase the transport of goods such as fruits and seafood from the southern region to China to boost revenues.

It earned revenues of VND8.19 trillion ($353 million) last year, unchanged from 2018.

Source: VnExpress