Vietnam Railways reports sharp rise in 2024 profit, still suffers accumulated losses

Consolidated revenue rose 11 percent from a year earlier to VND9.78 trillion ($375.4 million), also the highest since VNR began disclosing financial results. 

The gross profit reached VND1.06 trillion ($40.7 million), with a gross margin of 10.8 percent.

Passenger and freight transport remained VNR's main sources of income, contributing VND4.8 trillion ($184.2 million) in revenue, up 13 percent year-on-year. 

Regular maintenance services for railway infrastructure generated VND3.51 trillion ($134.7 million). 

Other industrial and service activities accounted for the remainder.

Revenue from financial activities declined slightly to VND41.6 billion ($1.6 million), while financial expenses fell 37 percent to VND75.9 billion ($2.9 million), mainly due to lower interest costs. 

Selling and administrative expenses increased to VND267.1 billion ($10.3 million) and VND628.7 billion ($24.1 million) respectively, with staff-related costs accounting for the largest share.

The company reported VND84 billion ($3.2 million) in other income, including asset sales and ticket cancellation fees, up nearly 83 percent from the previous year.

At the end of 2024, VNR's total assets stood at VND20.68 trillion ($793.7 million), down 25 percent year-on-year. 

The decline was mainly due to a sharp drop in tangible fixed assets, from VND21.45 trillion ($823.3 million) to VND14.58 trillion ($559.6 million).

Despite improved earnings, the company continued to carry accumulated losses of more than VND2 trillion ($76.8 million), mostly incurred during the COVID-19 pandemic.

For 2025, VNR targets VND10.34 trillion ($396.8 million) in consolidated revenue and a post-tax profit of VND145 billion ($5.6 million). 

It has asked the Ministry of Finance to work with relevant agencies to resolve difficulties, including land use and taxation issues, and to consider reducing infrastructure usage fees to help rail transport companies lower costs.

VNR operates 3,143 km of national railway lines across 34 provinces and cities, and manages 25 subsidiaries, 17 affiliated units, and eight joint ventures.