Vietnam Railways set 2023 profit target of $127,000

State-owned group Vietnam Railways has been asked to achieve revenue and after-tax profit of VND6.51 trillion ($275.3 million) and VND3 billion ($127,000) this year, respectively.

Under the modest targets set by the Commission for the Management of State Capital at Enterprises (CMSC), revenue from the provision of public administrative services and management and maintenance of national railway infrastructure invested in by the state should reach VND3.85 trillion ($162.9 million).

The corporation's return on equity (RoE) should be greater than 0.0%; there should be no overdue debts; and the debt-service coverage ratio (DSCR) should be greater than 1.

In 2022, the corporation recorded consolidated revenues of VND7.72 trillion ($329.06 million), up 13.8% year-on-year and hitting 115.8% of its year target. It posted a loss of VND130.5 billion ($5.56 million), up 75.7%.

In May 9, Prime Minister Pham Minh Chinh had appointed Dang Sy Manh, board member and CEO of Vietnam Railways, as the state-run group's new chairman.

Manh had previously held positions like director of the Railway Project Management Board of Region 2, director of the Railway Project Management Unit (RPMU) under Vietnam Railways, deputy director of the Vietnam Railway Authority, and deputy CEO in charge of the executive board of Vietnam Railways.

In January 2020, he was appointed CEO of Vietnam Railways. The position had been left vacant for nearly two years after Vu Anh Minh's term expired at the end of 2021.