In the first quarter of the year, Vinasun reported a profit of over 22 billion VND, which is a decrease of 58.5% and the lowest level in nearly two years. This decline was attributed to various factors, including the implementation of support policies for drivers, decreasing revenue from passenger transport services by taxi, and inflationary pressures. The management board explained that they have continued to provide “additional support for drivers and partners,” which negatively impacted their bottom line.
Despite these challenges, Vinasun has implemented innovative strategies to attract highly skilled workers and expand their business development. They plan to invest in new gasoline-electric hybrid vehicles as part of their business strategy, with plans to purchase about 700 new cars primarily focusing on Toyota’s high-end hybrid line. Additionally, Vinasun is considering a project to pilot the deployment of three-wheeled electric vehicles.
However, despite these innovative strategies, Vinasun has proposed a conservative business plan for the year. They are targeting revenue of over 1,100 billion VND, a decrease of more than 9%, and a profit after tax of more than 80.5 billion VND, only half of the previous year. By the end of the first quarter, they had completed a quarter of their revenue target and more than 27% of their profit plan. The Board of Directors acknowledges the challenges ahead, including the impact of tourism and passenger transport industry resilience due to COVID-19 restrictions, driver support policies that may continue to negatively impact profits in future quarters, competition from other ride-hailing companies such as Grab and Gojek in Vietnam’s growing e-commerce marketplace industry (eCommerce), inflationary pressures affecting fuel prices and vehicle maintenance costs among others.
