Railways achieve record revenue in first half of the year

Vietnam Railways Corporation (VNR) has achieved a record semi-annual revenue this year, with an average daily revenue of nearly 25 billion. At a recent conference, VNR reported that its 6-month revenue exceeded VND4,500 billion, marking a more than 10% increase compared to the same period in 2023. This revenue is a record for VNR and surpasses the annual revenue for the 2019-2021 period, averaging over VND24.7 billion per day.

For the full year, VNR aims to earn 6,258 billion VND, and they have already completed nearly 72% of this plan after the first half of the year. The company has not disclosed its 6-month profit figures yet. Passenger transport output in the first 6 months increased by nearly 21% compared to the previous year, with significant ticket sales during Tet contributing to the revenue growth.

VNR has introduced specialized train services like the “heritage connection” and the “Da Lat night train journey” to cater to different customer needs. The company is also focusing on increasing international freight transport volumes through various intermodal transport products and transit routes to neighboring countries.

Despite these successes, the railway industry has faced challenges due to recent incidents like landslides, causing congestion on some railway lines and additional costs for repairs. Vietnam Railway Corporation manages a vast infrastructure system that spans 3,143 km and includes 15 routes passing through 34 provinces and cities from North to South.

In recent years, VNR has managed to turn around its financial performance, recording profits after a period of losses. Last year, the company reported a profit of 77 billion VND, marking a significant improvement. The two largest members of VNR, Hanoi Railway (HRT) and Saigon Railway (SRT), have also shown signs of financial health with profits in the past year.

Looking ahead, HRT and SRT are set to merge after shareholder approval, which is expected to further streamline operations and improve efficiency. The railway industry in Vietnam continues to evolve, with a focus on enhancing services and increasing revenue streams.