Rail sector hard hit by pandemic
State-owned giant Vietnam Railways (VNR) has faced many difficulties due to the impact of the ongoing Covid-19 pandemic, leaving thousands of its workforce unemployed.
In the first five months of this year, VNR’s revenues were estimated at around VND400 billion (USD17.39 million), down 48.6% on-year.
According to VNR, many localities have imposed social distancing measures due to Covid-19 which has partially reduced the number of railway passengers. On the Reunification Day and May Day Holiday, around 11,383 railway tickets were returned, resulting in losses of nearly VND4 billion.
In May, 393 train trips were cut, including 247 from Hanoi Railway Transport Joint Stock Company and 146 from the Saigon Railway Transport JS Company.
Following these challenges, nearly 1,300 railway staff have become unemployed.
Hanoi Railway Transport JS Company has been forecasted to face a losses of VND193 billion this year, while the figure is VND273 billion for Saigon Railway Transport JS Company.
Amid the challenges, VNR is boosting cargo transportation activities to ease losses from passenger transportation.
The railway sector has offered a 50% discount on farm produce from Bac Giang, Bac Ninh, Vinh Phuc and Hai Duong due to their difficulties caused by Covid until July 31.
The lives of tens of thousands of railways workers have once again been turned upside down as their salaries have remained unpaid for four months.