Business

Railway sector faces unprecedented difficulties

The Vietnam Railways Corporation (VNR) has projected losses of more than 1.2 trillion VND (51.7 million USD) this year.
Railway sector faces unprecedented difficulties ảnh 1The Vietnam Railways Corporation should cooperate with marine and road transportation companies and airlines to develop a master transportation strategy and build a multimodel transport system (Source: baodautu.vn)

Hanoi (VNS/VNA) - The Vietnam Railways Corporation (VNR) has projectedlosses of more than 1.2 trillion VND (51.7 million USD) this year.

The companyearned revenue of 4.08 trillion VND in January - August, equivalent to just77.8 percent of the same period last year and 64.4 percent of its expectedrevenue for the full year.

Itssubsidiaries are also in difficulties, with Hanoi Railways projecting aloss of 410 billion VND, while Sai Gon Railways is set to lose 357 billionVND.  

VNR ChairmanVu Anh Minh said that slow innovation coupled with the impact of theCOVID-19 pandemic had pushed the railway industry into difficultiesunprecedented in more than a century of its history although the company hasmade efforts to attract passengers and increase revenues in recent years.

VNR wascalling for the Government’s supports to overcome the difficulties, Minh said,adding that it could take three to five years for the railway industry torecover.

VNR hopes tobe provided with exemptions and reductions in fees for using railway infrastructure,land use fees, extensions of deadlines for debt payment and interest rate cuts.

By 2021, VNRmust raise about 6.8 billion VND to invest in new train carriages andlocomotives to replace degraded ones. The company proposed the deadline for thereplacement to be extended as it was facing financial difficulties and hadnot been provided with preferential loans for these investments.

Nguyen HoangAnh, Chairman of the Committee for Management of State Capital at Enterpriseswhich manages VNR, said that the company must work with marine and roadtransportation companies and airlines to develop a master transportationstrategy and build a multimodel transport system./.
VNA
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