HÀ NỘI — The Việt Nam Railways Corporation (VNR) has projected losses of more than VNĐ1.2 trillion (US$51.7 million) this year.
The company earned a revenue of VNĐ4.08 trillion in January - August, equivalent to just 77.8 per cent of the same period last year and 64.4 per cent of its expected revenue for the full year.
Its subsidiaries are also in difficulties, with Hà Nội Railways projecting a loss of VNĐ410 billion, while Sài Gòn Railways is set to lose VNĐ357 billion.
Vũ Anh Minh, VNR’s chairman, said that slow innovation coupled with the impact of the COVID-19 pandemic had pushed the railway industry into difficulties unprecedented in more than a century of its history although the company has made efforts to attract passengers and increase revenues in recent years.
VNR was calling for the Government’s supports to overcome the difficulties, Minh said, adding that it could take three to five years for the railway industry to recover.
VNR hopes to be 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, VNR must raise about VNĐ6.8 billion to invest in new train carriages and locomotives to replace degraded ones. The company proposed the deadline for the replacement to be extended as it was facing financial difficulties and had not been provided with preferential loans for these investments.
Nguyễn Hoàng Anh, Chairman of the Commission for the Management of State Capital at Enterprises which manages VNR, said that the company must work with marine and road transportation companies and airlines to develop a master transportation strategy and build a multimodel transport system.
VNR earned revenue of VNĐ8.38 billion and pre-tax profit of VNĐ180 in 2019. — VNS
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