VNR asks for 34.77 million USD in non-interest loans hinh anh 1Illustrative image (Source:
Hanoi (VNA) – The Vietnam Railway Corporation (VNR) has proposed borrowing non-interest loans worth 800 billion VND (34.77 million USD) to deal with its difficulties caused by the COVID-19 pandemic.

The proposal had been sent to the Commission for the Management of State Capital at Enterprises.

According to Vu Anh Minh, Chairman of the VNR Members’ Council, the corporation suffered losses of more than 1.3 trillion VND last year, and expected to lose an additional 942 billion VND this year.

If the pandemic lasts until next year, the VNR might lose all of its equity and would not be able to pay salaries for employees, he said.

Therefore, Minh said, apart from the 34.77 million USD non-interest loans, the VNR also suggested authorities give support policies to its 13,000 affected employees.

The corporation also proposed reducing the railway infrastructure use fees this year and in the following years, and reducing or exempting the land use fees for railway transportation firms this year and extending the fee payment deadlines.

Over the past five months, the railway sector earned more than 1.11 trillion VND in revenue, equivalent to 81.6 percent of the figure recorded in the same period last year and 60.1 percent in the period in 2019, when the pandemic had yet to break out.

At present, 1,169 employees of the VNR have their employment contracts suspended and 136 others have taken unpaid leave./.