Rail transport gains two-digit growth

In the first six months of the year, Vietnam Railway Corporation’s total revenue rose by 10 per cent year on year to more than VNĐ4.5 trillion. —VNA/VNS Photo

HÀ NỘI — In the first six months of the year, Vietnam Railway Corporation’s total revenue rose by 10 per cent year-on-year to more than VNĐ4.5 trillion, including VNĐ3 trillion from the parent company, up by 11.2 per cent.

Chief of the corporation’s office Nguyễn Hữu Thanh, revealed the positive figures at a conference reviewing business activities in the first six months of this year held in Hà Nội on July 3.

Passenger transport output during the six months increased by 20.6 per cent over the same period. Of which, more than 650,000 train tickets were sold during the Lunar New Year, earning more than VNĐ400 billion, up by 7.5 per cent over the same period.

The corporation chartered additional trains for tourists, following requests from travel companies.

Regarding freight transport, the railway sector exploited new cargo flows and implemented solutions to improve international freight transport output by rail. 

Accordingly, it upgraded international transport activities in Cao Xá, exploiting more products for international transport routes between Việt Nam and China and those in transit in China to third countries such as Russia, Europe, Mongolia and Central Asia.

In the remaining months of the year, corporation general director Hoàng Gia Khánh said along with promoting production and business activities, the corporation will implement its restructuring strategy.

The corporation has completed a plan to merge two railway transport joint stock companies, Hà Nội and Sài Gòn, into one railway transport company. The shareholders’ meeting of the two companies has approved the merger and the company is implementing procedures for this to go ahead.

On June 26, the Prime Minister signed Decision No. 562 approving the project on restructuring the Vietnam Railways Corporation until the end of 2025.

So, by the end of this year, the restructuring and merger of the two companies should be complete, Khánh said.

Regarding the 2024 production and business plan, the corporation aims to complete the targets in the last six months of the year. 

The corporation achieved a total revenue of more than VNĐ4.7 trillion and a profit of VNĐ53.5 billion.

Of which, the parent company expects to reach more than VNĐ2.9 trillion in revenue and VNĐ11.7 billion in profit, including more than VNĐ2 trillion from transportation – up by 8.6 per cent compared to last year. — VNS