Driver support causes Vinasun taxi profits to drop by half

In the first quarter of the year, Vinasun reported a profit of over 22 billion VND, which is a decrease of 58.5% and the lowest level in nearly two years. This decline was attributed to the implementation of support policies for drivers. Recent financial reports revealed that Vietnam Sunshine Joint Stock Company (Vinasun – VNS) had revenue of more than 278.6 billion VND, a drop of nearly 15% compared to the same period last year. The passenger transport service by taxi was the most affected, with revenue decreasing by 13%.

The profit for the first quarter was more than 22 billion VND, marking a 58.5% decrease over the same period. This is also the company’s lowest profit since the second quarter of 2022. The management board explained that the decline in profits was a result of the decrease in revenue. Additionally, Vinasun continued to provide “additional support for drivers and partners,” which impacted their bottom line.

Despite the challenges, Vinasun plans to focus on attracting highly skilled workers by implementing a better income division policy. The company also intends to invest in new gasoline-electric hybrid vehicles as part of their business development strategy. They plan to purchase about 700 new cars, primarily focusing on Toyota’s high-end hybrid line. Furthermore, Vinasun is considering a project to pilot the deployment of three-wheeled electric vehicles.

However, despite these innovative strategies, Vinasun has proposed a conservative business plan for the year. They are targeting revenue of over 1,100 billion VND, a decrease of more than 9%, and a profit after tax of more than 80.5 billion VND, only half of the previous year. By the end of the first quarter, they had completed a quarter of their revenue target and more than 27% of their profit plan. The Board of Directors acknowledges the challenges ahead, including the impact of tourism and passenger transport industry resilience, driver support policies, competition, inflation, and customer purchasing power.