Vietnam Railways Corporation Surpasses Annual Revenue in 6 Months with Record-Breaking Output

Vietnam Railways Corporation (VNR) has achieved record-breaking semi-annual revenue this year, surpassing its annual revenue for the 2019-2021 period. With a daily average of nearly VND 25 billion, VNR’s revenue for the first 6 months of 2023 reached over VND 4,500 billion, representing an increase of more than 10% compared to the same period in 2019.

The company aims to earn VND 6,258 billion by the end of the year and has already completed nearly 72% of its plan. Despite not yet announcing the 6-month profit figure, VNR’s management board noted that passenger transport output increased by nearly 21% compared to the same period last year. During Tet alone, the railway industry sold 650,000 train tickets, earning nearly VND 401 billion, which is a significant increase of 7.5% over the same period last year.

VNR has introduced several innovative solutions to increase its international freight transport output. For example, it has started exploiting more Vietnam – China intermodal transport products. Additionally, specialized train pairs such as the “heritage connection” train on the Hue – Da Nang route and charter trains with customized itineraries and services have been put into operation.

However, recent challenges have affected the railway industry’s operations in Vietnam. Landslides at Bai Gio and Chi Thanh tunnels caused congestion on the Hanoi – Ho Chi Minh City railway line during Tet celebrations. These incidents resulted in additional costs for repairs and indirect damage exceeding VND 106 billion. It is worth noting that Vietnam Railway Corporation consists of many subsidiaries, affiliated units, and joint ventures – with Hanoi Railway (HRT) and Saigon Railway (SRT) being two of its largest members currently undergoing merger procedures after shareholders’ approval.

Despite these challenges, VNR has made significant progress in achieving its financial goals while also introducing new innovations to improve its services for passengers and customers alike.