Railroad bowl because the airline is cheap?

Looking back the past 1 year, Chairman of the Board of Members of Vietnam Railway Corporation (VNR) Vu Anh Minh said that 2019 was one of the three most difficult periods in the history of the railway industry (previously 1979 and 1984). When the railway has not reached the plan and not as expected.

Compared with other types of transport, Mr. Minh said: “The difficulty of railway lies in changing thinking, people, because people make the mechanism. By law, railway is identified as the main mode of transportation, but has not received such attention and investment, ”said Mr. Minh.

The representative of VNR hoped that the railway sector would be seen with the right role to move towards changing the thinking and outlook of ministries, localities and the whole society.

Railways continued to have a difficult year of production and business, when the data did not meet the set plan.

According to VNR, in 2019, railways are under increasing competitive pressure from low-cost airlines and high-speed roads for passenger transport, as airlines are continuously launching and opening short and medium flights. , which is the advantage of railway. In terms of freight transportation, railway is under competitive pressure with sea and road, leading to a decrease in market share of railway transport.

Such difficulties, but last year, the investment capital for railway infrastructure development was not allocated because of the mechanism problems, leading to some bottlenecks in infrastructure that have not been resolved. Meanwhile, some localities want to move the railway station out of the inner city, such as Binh Dinh who wants to change Quy Nhon station, and Da Nang wants to change Da Nang station.

Regarding production and business results, in 2019, the volume of transportation reached more than VND 8,400 billion. Total revenue is more than 8,190 billion, equal to last year, but nearly 3% lower than year plan. The average income of employees was over 9.1 million VND / person.

In which, parent company revenue reached more than 2,388 billion, down 7% over the same period and 3% lower than the plan. Profit after tax was only nearly 14 billion VND (equal to 14% compared to the previous year).

Transportation sector achieved total revenue of more than VND 4,200 billion, down 2% over the same period and 8% lower than the year plan.

In the past year, VNR has stepped up signing transport cooperation agreements with large manufacturing enterprises to transport goods. In particular, for passenger transportation, in addition to improving the quality of wagons and service, many new forms of ticketing have been applied, such as selling tickets online by phone, via applications, and developing policies for customers. intimate goods.