Railway company asks for subsidy after running into losses

VietNamNet Bridge – Ha Noi Railway Transport Joint Stock Company has asked for a Government subsidy after suffering losses due to a lack of passengers.

Ha Noi Railway Transport Joint Stock Company, suffering losses, lack of passengers, Vietnam economy, Vietnamnet bridge, English news about Vietnam, Vietnam news, news about Vietnam, English news, Vietnamnet news, latest news on Vietnam, Vietnam

Ha Noi Railway Station. — VNA/VNS Photo Huy Hung


According to the company, last year it suffered a loss of VND8 billion (US$350,000) on the Hanoi- Dong Dang route, VND5.7 billion ($248,000) on the Hanoi-Quan Trieu route and nearly VND7.5 billion ($327,000) on the Yen Vien-Ha Long route.

In the last six months of this year, it has forecast a loss of VND12 billion ($523,000)

Director Nguyen Viet Hiep said that the company had to operate trains on the three routes despite the fact that few passengers used the routes, resulting in low revenue.

“The company tried to attract passengers and increase revenue but is still failing to meet operation costs,” Hiep said.

He emphasised the need for a Government subsidy to continue offering services on the routes to ensure social security and public benefits.

Source: VNS

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