Vietnam Railways reports 20% falls in profit in Jan - Jun
The railway sector is under fierce competition from road and air transport.
State-run Vietnam Railways (VNR) saw its after-tax profit decrease by 20.4% year-on-year to VND108.6 billion (US$4.63 million) in the first six months of 2018, the firm has said in a financial statement.
Illustrative photo.
|
The railway sector is under fierce competition from road and air transports, resulting in a decline of 10.6% year-on-year in passenger to 4.5 million and 1.9 billion passengers-kilometers, down 4.5% in the January - June period.
Cargo carriage in the period reached 2.9 million tons, up 4.1% year-on-year, and 1.9 billion tons - kilometers, up 13.5% year-on-year.
In the April - June period, VNR's revenue reached VND643.9 billion (US$27.44 million), up 12.3% year-on-year. However, due to an increase of 18.3% in cost of goods sold compared to the same period of last year, VNR's gross profit margin decreased by 26%.
Although the company's financial, sale and administrative expenses declined in the second quarter and income from financial activities increased by VND7.7 billion (US$328,197), VNR's after-tax profit declined to VND38.2 billion (US$1.62 million), down 17.5% year-on-year.
As of June 30, VNR's total asset value reached VND15.48 trillion (US$659.6 million), of which, long-term assets accounted for 86.4% at VND10.83 trillion (US$461.48 million) of the total.
Additionally, VNR's payables stood at VND726.3 billion (US$30.95 million).
In 2018, VNR sets consolidated revenue target of VND8.59 trillion (US$366.13 million) and after-tax profit of VND158 billion (US$6.73 million). The national train carrier expected to contribute VND374 billion (US$15.93 million) to the state budget.
The Vietnamese railway industry witnessed declining popularity. In 2016, the train passenger volume dropped by 17% compared to 2015 to 9.8 million, while during the first six months of 2017, it had 5 million passengers, down 2.9% compared to the corresponding period last year, according to Vietnam Railway Corporation's statistics.
22:59, 2024/12/24
Hanoi to attract US$768 million in industrial parks in 2024
Companies in Hanoi highlighted the significant improvements in the business environment in Vietnam, particularly in the capital, where it has become easier to operate in the industrial zones.
21:35, 2024/12/21
Regulatory efforts underway to strengthen e-commerce in Vietnam
By 2025, Vietnam's e-commerce is expected to reach 10% of retail sales and contribute to the digital economy which is estimated to account for 20% of GDP.
16:51, 2024/12/14
Hanoi honors key industrial products in 2024
This recognition is a testament to the city government's ongoing support of local businesses.
18:09, 2024/12/12
EVs take the spotlight on Vietnam's urban streets
On the streets of Hanoi, a quiet but powerful shift in transportation is underway.
13:43, 2024/12/12
Hanoi names 83 institutions Green Energy User 2024
More than 80 facilities and projects have been recognized for their innovative use of green energy in manufacturing.
12:07, 2024/12/09
Bat Trang artisans innovate to meet global market demands
To boost competitiveness, Bat Trang pottery businesses leverage information technology for product promotion.
- Vietnam youth gears up for a greener future
- Hanoi to create over 213,000 jobs in Jan-Nov
- Update on worker conditions in South Korea from Vietnamese labor authorities
- Vietnam partners with NVIDIA to establish AI research center
- Hanoi grasps opportunities to drive semiconductor industry growth
- Internet users in Vietnam to hit 100 million by 2029