Revenue increases, losses grow larger
Thanh Buoi Company was established in 2000, operating mainly in the field of passenger and cargo transportation. The company has its headquarters on Le Hong Phong Street, with two offices on Dien Bien Phu Street and Vo Nguyen Giap Street, both in Ho Chi Minh City.
This bus company has more than 1,300 employees, holding a large market share on the routes Da Lat - Ho Chi Minh City, Da Lat - Can Tho and Ho Chi Minh City - Can Tho with more competitive facilities than its competitors. These are all crowded routes, especially on weekends, holidays and Tet when the demand for entertainment and tourism increases.
In fact, the company's name is a combination of the names of Mr. Thanh and Mrs. Buoi. Mr. Thanh is the founder and holds the position of Director and legal representative.
According to information from the National Business Registration Portal, after 24 changes in business registration, Thanh Buoi Company currently has a charter capital of VND 80 billion. The ownership ratio from the end of 2021 includes founder Le Duc Thanh holding 84.71% and his son Le Duong owning the remaining 15.29% of capital.
In addition to the above core business, Mr. Thanh contributed capital to establish Le Khanh Transport Company Limited in 2009, also operating in the field of passenger transport by bus. The company was renamed Thanh Le Tourism Environment Company Limited at the end of 2022.
Regarding business operations, according to data from Vietdata, Thanh Buoi has a fairly large sales scale in the passenger transport industry. The company lost half of its revenue in 2021, but quickly regained its form, reaching more than 485 billion VND in 2022 (equivalent to 2020).
However, business performance is a concern as the company continues to suffer losses and is increasing. Thanh Buoi recorded a record loss of more than VND85 billion in 2022, many times higher than in previous years.
A series of car companies are losing money.
Thanh Buoi's business situation is similar to the general picture of companies operating in the passenger transport sector. Revenue has grown again, but many units are still operating at a loss.
Vietdata's report shows that Kumho Samco (a joint venture between Kumho Group and Samco Corporation) also had poor results when it had to suffer losses of tens of billions of VND for the past 3 consecutive years.
This joint venture has 40 high-quality passenger cars running on fixed routes from Ho Chi Minh City to Phan Thiet, Vung Tau, Buon Me Thuot and at the same time expanding to tourists and contract customers. Revenue in 2022 also improved again with 231 billion VND.
Mai Linh Express of Mai Linh Group currently operates on 12 routes connecting provinces and cities from the South to the North, but in recent years has sharply narrowed its operations, resulting in revenue of only a few billion VND and also losses for two consecutive years.
The "boss" of the passenger transport industry, Phuong Trang, currently owns the largest fleet of 2,000 vehicles of all types, operating on most of the busy routes in Vietnam. Revenue scale has expanded rapidly, growing 3 times in the 2020-2022 period to about 640 billion VND.
However, after-tax profits fluctuated greatly. The largest car company in the market unexpectedly had a huge profit of 109 billion VND in 2021, while in the remaining years this car company suffered losses of tens of billions and even hundreds of billions of VND.
On the contrary, there are still some bus companies with positive profits but the profit figures are very modest, only a few billion VND. If compared to revenue, the profit/revenue efficiency is only about a few % such as Toan Thang, Sao Viet, Hoang Long...
In the context of increasing travel and exchange needs of people, the passenger transport industry is making a positive change, despite the economic recession and many industries falling into difficulties. Data from Vietdata shows that the growth rate of the passenger transport industry increased by 21.2% in the first months of 2023.
The increasing and continuous demand for travel of people today has created opportunities for many passenger transport companies to develop. However, having too many passenger transport companies has created extremely fierce competition. Car companies are very likely to face losing customers to competitors.
To promote the demand for services, bus companies not only transport people but also have different freight transport systems. Bus companies also have many campaigns to attract customers by launching discount programs to retain customers, building online ticket booking systems, upgrading facilities...
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