Passengers leave a North-South train operated by the Ha Noi Railway Transport JSC. — VNA/VNS Photo

Vietnamese railway companies reported large losses in 2020 due to the impacts of the COVID-19 pandemic.

Ha Noi Railway Transport JSC (HRT) earned VND469 billion (US$20.5 million) in the fourth quarter of 2020, down 21 per cent year-on-year.

Cost of goods sold accounts for most of net revenue, thus gross profit totaled only over VND8 billion, down sharply compared to VND42 billion in the same period of 2019. After deducting expenses, the after-tax loss in Q4 was estimated at nearly VND55 billion, while in the same period last year its loss was just more than VND12.5 billion.

In 2020, HRT achieved revenue of VND1.94 trillion, down 24 per cent year-on-year. It suffered a loss of VND195 billion in the year while enjoying profit of VND14 billion in 2019.

Previously at the General Meeting of Shareholders in 2020, the company approved a plan for 2020 which expected total revenue to reach VND1.63 trillion, and a loss up to VND335.4 billion due to the influence of COVID-19.

Saigon Railway Transport JSC (SRT) announced Q4 revenue of VND282 billion, down by 22.5 per cent year-on-year. It reported an after-tax loss of more than VND105 billion.

For the whole year 2020, SRT reported an accumulated loss of VND218 billion, while the business had a profit of VND14.6 billion in 2019.

Due to the impact of the COVID-19 pandemic, many railway companies faced difficulties. According to experts, the railway industry in 2020 experienced the most difficult period in history.

Viet Nam Railway Corporation (VNR) also announced that its revenue in the first nine months of 2020 decreased 34.2 per cent year-on-year, equivalent to a decrease of VND1.18 trillion. — VNS