Hanoi Railway Transport makes profit after two years of losses

Hanoi Railway Transport JSC, a subsidiary of the Vietnam Railway Corporation (VNR), reported an after-tax profit of VND4.3 billion (US$184,804) after two consecutive years of losses due to the impact of the Covid-19 pandemic.

Haraco earns a profit of more than $184,000 after two years of losses. Photo: Hoa Thang

In its financial report for the fourth quarter (Q4) of 2022, Hanoi Railway Transport JSC (Haraco) said its consolidated revenue in 2022 totaled more than VND2.3 trillion, up 49% compared to the previous year.

Thanks to high travel demand, its revenue was VND566 billion in Q4/2022.

2021's loss amounted to more than VND121 billion.

In early 2022, Haraco’s general meeting of shareholders approved a business plan with an expected loss of more than VND101 billion. 

According to the company representative, as transportation recovered after the pandemic, they have put in place many solutions to reduce costs and boost business lines, such as promoting freight transport to offset losses from passenger transportation, operating passenger train schedules following market demand, and offering package transportation products.

Besides, the company has also cooperated with travel agencies to offer tourism products by rail at reasonable prices.

This year, Haraco aims to reach a total revenue of nearly VND2.2 trillion, a year-on-year increase of 10%. 

Of the figure, freight forwarding will generate VND1.1 trillion, passenger transport over VND1 trillion, and other services over VND216 billion.