Railway sector changes mindset, moves forward

The railway sector has made numerous breakthroughs in service quality and station infrastructure to attract passengers. (Photo: VietnamPlus)

Hanoi (VNA) - Over the past years, Vietnam Railways Corporation (VNR) has undergone changes in mindset, achieving better production and business results and attracting more passengers, insiders have said.

Earlier this year, Prime Minister Pham Minh Chinh had, for the first time, attended a meeting of the corporation, which set out an operation plan for 2024.  

At the meeting, the Government leader highlighted the industry’s efforts in asset, personnel, and operation restructuring, and lauded its creative solutions, which, he said, have brought about benefits and raised the material and spiritual lives of employees.

Specifically, the VNR put into service the high-quality train between Hanoi and the central city of Da Nang last year. It offered wedding services on the Da Lat-Trai Mat train and opened coffee shops at the Long Bien station in Hanoi and another in the northern province of Hai Duong. With similar models expected to be launched at other stations, it turned some stations into check-in points, and successfully piloted self-service ticket vending kiosks. In the future, it plans to offer free Internet services on trains. 

Railway tourism has emerged as a new trend. (Photo: VietnamPlus)

The corporation has also collaborated with partners such as Belmond Ltd. to weigh running luxury trains and with Vietravel to launch a five-star trans-Vietnam train project.

Nguyen Quoc Ky, Chairman of tourism company Vietravel, said rail tourism has emerged as a new trend, citing statistics by the Vietnam National Authority of Tourism (VNAT) showing that the sector served up to 10 million domestic tourists and 1.5 million foreigners last year, representing year-on-year increases of 15% and 20%, respectively.

Over the past time, the VNR has maintained its international cargo transportation services, and proven its advantages and potential in this field with diversified products like refrigerated container trains.

Dang Sy Manh, Chairman of the VNR's Board of Members, affirmed that the biggest change in the railway industry over the past years is seen in the mindset of both leaders and employees.

The sector has frankly acknowledged its difficulties and focused on resolving them definitively, he added. The rail line has raised its attractiveness by improving service quality, proposing solutions to bottlenecks in infrastructure, and setting up connectivity with industrial parks and seaports.

The railway sector has improved service quality over the past years. (Photo: VietnamPlus)

The VNR will invest more in infrastructure, boost its connectivity with travel firms, step up container services and international freight transportation services, and actively participate in logistics chains, he said.

According to the VNR, last year, it earned 8.5 trillion VND (344 million USD), surpassing its yearly plan by 1.7%, with 6.1 million tickets sold. The firm’s direct revenue from transportation reached nearly 4 trillion VND.

Notably, the VNR’s after-tax profit hit 94.8 billion VND in the year compared to a loss of 11.9 billion VND in 2022.

Given the pressure of huge competition for travel dollars, the corporation expects to pocket 6.25 trillion VND this year, with transportation volume set to rise about 7.3%, and after-tax profit, up 11% year-on-year.

By 2025, its combined revenue is projected at 39.54 billion VND, and its pre-tax for the 2023-2025 period, 327 billion VND./.