Taxi service provider Vinasun doubles remuneration for senior management, pays 45% dividend

Transportation company Vinasun paid its board of directors, general directors and supervisors VND8.5 billion ($345,500) in pay and bonuses in 2023, more than double their remuneration in 2022.

According to its consolidated financial report for the fourth quarter of 2023 released by Vietnam Anh Duong JSC (Vinasun) recently, the remuneration for top brass in 2022 was just VND3.9 billion ($158,500).

General director Dang Thanh Duy was the top earner, taking home VND1.5 billion ($60,970), an increase of 130% in comparison with his earnings in 2022.

Tran Anh Minh, a board member, was second with VND1.4 billion ($56,900). Over VND1 billion ($40,650) each was given to board chairman Ta Long Hy, deputy general director Dang Thi Lan Phuong and board member Dang Phuoc Thanh.

Vinasun also paid cash dividends of 45% to shareholders, or VND300 billion, the highest ever. The payment was made in August and September 2023.

At an extraordinary general meeting in July 2023, shareholders said the dividend payment was too high, questioning if the company would be able to maintain this level in the coming years.

Vinasun leaders said the move was an effort to mitigate the impacts of the post-Covid crisis, complicated and unpredictable changes in the domestic and global economy, recession concerns, and declining purchasing power. In light of the difficulties, the company was sharing profits with shareholders, of whom 90-95% are long-term investors, in paying out 45% cash dividends, they said.

The company has always sought to strike a balance between shareholder interests and the company's growth, they said.

At the end of 2023, the company had more than VND400 billion ($16.25 million) in cash and deposits, down VND140 billion ($5.86 million) compared to the beginning of the year. It had short-term debts of VND97 billion ($3.94 million) and long-term debts of VND193 billion ($7.84 million).

Revenue up, profit down

Vinasun’s cumulative net revenues in 2023 reached nearly VND1,219 billion ($45.54 million), an increase of 12% year-on-year. However its net profit of VND151 billion ($6.13 million) was down 18.3% year-on-year, slightly more than 72% of its year target.

The company’s VNS ticker, listed on the Ho Chi Minh Stock Exchange (HoSE) closed Friday at VND13,600 ($0.55) per share.

Vinasun leaders acknowledged that developments in the taxi market were “very complicated.” The company will continue to invest in vehicles and improve service as well as vehicle quality, focusing on traditional markets like Ho Chi Minh City, the provinces of Dong Nai and Binh Duong, and the central city of Danang.