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Tag: Vietnam Railways

  • Vietnam Railways sees smaller losses in H1

    Vietnam Railways sees smaller losses in H1

    State-owned Vietnam Railways Corporation racked up after-tax losses of VND30 billion (nearly $1.3 million) in H1, down from losses of VND100 billion in the same period last year.

    The corporation said it would suffer after-tax losses of VND570 billion in 2022, compared with losses of VND1.327 trillion in 2020 and of VND565 billion in 2021.

    Vietnam Railways’ financial statements showed that its revenues in the first half grew 36% on-year to nearly VND1.045 trillion. It has targeted revenues of VND1.62 trillion in the whole year.

    By the end of June, Vietnam Railways had assets of over VND15 trillion, up VND200 billion against the beginning of this year.

    The corporation currently runs a debt of nearly VND2.23 trillion, with undistributed loss exceeding VND1.85 trillion.

    It is gradually shifting focus from passenger to freight transport, promoting routes linking with international equivalents.

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  • Vietnam Railways pleads for government funding as staff remain unpaid

    Vietnam Railways pleads for government funding as staff remain unpaid

    Vietnam Railways owes its 11,300 workers four months’ salaries due to a funding delay by the government, and fears this could cause many to quit.

    It reminded the government that it was supposed to receive VND2.8 trillion ($121.3 million) at the beginning of this year, but has not, forcing it to pay minimum compensation to staff.

    Vu Anh Minh, its chairman, said the delay could cause barrier operators at grade crossings and patrol staff to quit since they have the lowest incomes.

    “The issue has pushed the company to the end of its road. We might not survive until the end of this month.”

    This is not the first time VNR has been forced to beseech the government for funding. Last year too it owed its staff salary for months but managed to survive that crisis.

    The problem can be tracked to a dispute between two government agencies. Last year VNR became one of 19 state-owned companies whose oversight passed to the Commission for the Management of State Capital at Enterprises (CMSC), an entity that manages the government’s $43 billion investment in various companies.

    The CMSC refused to provide funds, saying maintenance workers should be paid by the Ministry of Transport since it controls the maintenance and infrastructure budget.

    But the ministry cannot provide funds to any entity it does not manage.

    A temporary solution was agreed upon last year and the transport ministry provided the needed sum of VND2.5 trillion.

    But there has been no decision yet on whether the same thing will happen this year, leaving VNR and its staff in the lurch.

    VNR wants the government to provide the money through the CMSC.

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