Vinasun posts biggest loss since establishment

This is the second consecutive quarterly loss for the company this year as social distancing measures imposed to prevent the spread of the novel coronavirus caused its Q2 revenues to plummet by 70 percent year-on-year to VND155 billion ($6.7 million).

The company, the second largest taxi firm in Vietnam behind Mai Linh Group, recorded an accumulated loss of VND128 billion ($5.5 million) this year, exceeding its earlier loss forecast for 2020 at VND115 billion ($4.9 million).

This means the company would likely post its first annual loss since 2008 by the end of this year unless major profits are recorded in the second half.

In the first six months, its number of employees dropped by 1,165, or 20 percent, to 4,625.

Vinasun leaders said at an annual general meeting in June that 2020 is the most challenging year for the company since its establishment in 2003.

Tran Anh Minh, deputy director, said although economic activities in Vietnam have resumed, taxi revenues will recover slowly since tourism demand has not fully recovered to pre-pandemic levels.

Vinasun and other traditional taxi companies have faced rising competition from ride-hailing firms in recent years. In 2019, its revenue fell to the lowest since 2011 at VND1.99 trillion ($85 million).