The company's after-tax profit is expected to reach VND95 billion (US$4.2 million) in 2018, decreasing 50% compared to 2017, according to the company's 2017 consolidated financial report.
Vinasun forecasts a slump in revenue target.
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This is the fourth consecutive year that Vinasun decided to lower the revenue target, due to fierce competition from ride-hailing firms.
Consequently, its after-tax profit in 2017 was estimated at VND189 billion (US$8.32 million), decreasing around 40% compared to 2016 and at 92.3% of the year target.
Comparing to previous years, Vinasun has witnessed a sharp decline in revenue, for which in 2014, the figure was VND3.7 trillion (US$163 million), 2015 at VND4.2 trillion (US$185 million), 2016 was VND4.5 trillion (US$198.2 million) and of VND2.7 trillion (US$119 million) in 2017.
Additionally, Vinasun's total operational cars has reduced 11% compared to the end of 2016 at 5,835 cars. Last year, the taxi firm has sold 1,293 cars, while the number of new car purchases was 567 cars.
The report also informed that the average number of booking call per day has steadily reduced by 25% in recent years, which is currently at 36,000 calls. Reasons behind this, according to Vinasun, was due to "illegal" presences and "unfair" competition from foreign companies.
Uber or Grab, as implied by Vinasun, has exploited loopholes in taxi operation regulations to develop the number of contracted cars to 30,000 units at Ho Chi Minh city alone, 5 times higher than that of Vinasun.
These firms have been reducing transport fares, for example, some even are willing to take losses up to nearly VND1 trillion (US$44 million), despite the charter capital is only VND20 billion (US$881,000).
Grab and Uber arrived in Vietnam in 2014 and operate both car and motorbike taxi services. The two services have been running on a trial basis since early 2016, but have been caught up in a turf war with traditional taxi drivers.
Vinasun once took Grab to court accusing the firm of violating tax obligations. Last September, Hanoi Taxi Association said Uber and Grab had been transferring around $150 million overseas every year to evade taxes. Grab denied the accusation.
