Taxi firm Vinasun profits plunge to 2-year low

Revenues slid 16% to VND253 billion, it reported, the fourth straight quarter of decline.

Its non-operating income fell to VND3.7 billion from VND12.3 billion a year ago due to lower deposit interest rates.

It has VND239.4 billion in cash and cash equivalents.

In the first half of the year revenues decreased by 15.4% year-on-year and profits by 58.2%.

Vinasun said the lower profits were due to declining revenues but also its “policies to support its drivers and partners,” a reason it has cited often to explain previous poor performances.

The company said it is hiring skilled personnel to improve service quality and investing in hybrid electric vehicles, particularly premium ones made by Toyota. It is also researching the possibility of adding three-wheel EVs to its fleet.

Company executives expect difficulties this year due to fierce competition, inflation and consumers tightening their belts, and so have set conservative revenue and profit targets of VND1.1 trillion and VND80.5 billion, down 9% and 50% from 2023.