Facing a difficult period for all industries, the passenger transport industry is making extremely good changes. In the first few months of 2023, the growth rate of the passenger transport industry has increased by 21.2% compared to the same period in 2022.
Currently, the increasing mobility needs of people have created opportunities for many passenger car companies to develop. However, there are too many passenger car companies, creating fierce competition in the market. Transportation businesses are facing the loss of customers to their competitors.
In order to meet the growing demand for transportation services, passenger car companies not only provide transportation for people, but also offer various freight transport options. Customers can choose different forms of freight transportation depending on their specific needs.
In response to the highly competitive market, numerous passenger car companies have initiated campaigns to entice customers by offering discount codes and incentives to both new and returning customers. In addition, passenger car companies have also developed online ticket booking systems to streamline the ticket purchasing process for their customers. Moreover, in response to customers' demand for affordable and high-quality transportation, some passenger car companies have lowered their ticket prices in order to retain current customers and attract new ones.
Phuong Trang
With over 20 years of experience in passenger transportation, Phuong Trang has established itself as one of the most renowned and reputable passenger car companies in Vietnam. Currently, Phuong Trang boasts a fleet of over 2,000 vehicles of various types to cater to all customer demands. Moreover, in 2021, Phuong Trang partnered with MoMo e-wallet to offer online ticket booking services with attractive incentives, making the process more convenient for customers.
As the top transportation company in Vietnam, Phuong Trang has experienced favorable business growth in recent years. Its revenue has continuously increased for three consecutive years, from 2020 to 2023. In particular, the company's revenue in 2022 has increased by over 142 billion VND compared to 2021, which is three times higher than its revenue in 2020.
Notably, Phuong Trang's after-tax profit has experienced significant fluctuations. Despite the challenges posed by the strong epidemic outbreak in 2021 and the difficulties faced by most businesses, this is the only year in the 2020-2022 period where Phuong Trang has recorded a positive after-tax profit of approximately 109 billion VND. However, in the other years, the company has incurred losses of tens of billions or even hundreds of billions of dong.
Thanh Buoi
Thanh Buoi is renowned for being a major enterprise with exceptional facilities. In the face of competition from its rivals, Thanh Buoi has taken a unique approach by adorning its passenger cars with a striking exterior. By featuring adorable cartoon characters on the outside of their cars, Thanh Buoi has successfully captured the attention of customers and left a lasting impression.
Thanh Buoi experienced an extremely difficult year in 2021 when its revenue decreased by more than 50% compared to the previous year. However, in 2022, the company has bounced back and its revenue has returned to its original level of over 486 billion VND. Unfortunately, the after-tax profit did not meet expectations as losses continued to increase. In 2022, the company's losses are expected to exceed 85 billion VND, significantly higher than in previous years.
Mai Linh Express
Mai Linh Express is a division of the Mai Linh Group that currently operates on 12 routes connecting provinces and cities from the south to the north. With a professional, dedicated, thoughtful, and honest approach to service, the Mai Linh Express brand has become well-known and trusted by customers. Additionally, Mai Linh Express offers an online ticket purchasing system and door-to-door delivery for added convenience.
As the largest and most well-known brand, Mai Linh Express has not been as active in recent years. As a result, the company's revenue has decreased and only reached slightly over 4 billion VND in 2022.
Kumho Samco
Kumho Samco belongs to Kumho Samco BusLines company limited of the Kumho Group and Samco Corporation. As soon as it was established, the company began operating 40 high-quality passenger buses on routes such as Ho Chi Minh City to Phan Thiet, Ho Chi Minh City to Vung Tau, and Ho Chi Minh City to Buon Me Thuot. Currently, the company has expanded its operations to include fixed routes in provinces like Vung Tau, Buon Me Thuot, and Western provinces, as well as providing improved services for tourists and contract customers.
Just like Thanh Buoi, Kumho Samco's revenue in 2021 decreased quite sharply due to the impact of the epidemic. Entering 2022, Kumho Samco's revenue has increased again and reached 231 billion VND. However, the after-tax profit of this transportation business is not very positive as it has always suffered losses of several tens of billions of dong for 3 consecutive years.
Hoang Long
Hoang Long is a well-known brand in Hai Phong, with over 200 buses operating 24/7. The company provides transportation services on the route from Hanoi to Ho Chi Minh City. In 2004, this enterprise opened the Hanoi - Hai Phong - Cat Ba intermodal route to serve the transportation needs of people.
This business has made a strong recovery after the epidemic period in 2021, with revenue reaching 184 billion VND in 2022, which is double the previous year's amount. Hoang Long's profit after tax has also shown significant improvement, reaching 1.7 billion VND in 2022, an increase of nearly 1.4 billion compared to 2021 and double the amount in 2020.
Sao Viet
Sao Viet Company is a well-known car company in Hanoi and Lao Cai, operating under Minh Thanh Phat Trading and Service Company Limited. Every day, Sao Viet offers nearly 40 trips from Hanoi to Lao Cai and vice versa, with departures from 6:00 AM to 12:00 AM. The company's main car options include 40-seat sleeper cars and 9-seat Limousine cars.
Due to the effects of the epidemic, the business situation of Sao Viet in 2021 has significantly declined, with revenue reaching only about 27 billion VND. Additionally, the company also experienced a loss of over 18 billion VND, a significant increase from the 1.4 billion VND loss in 2020.
As we enter 2022, the business situation of this company has significantly improved. In particular, Sao Viet's revenue has risen to 83 billion VND and its after-tax profit has reached a positive figure of over 2 billion VND.
Van Minh
Van Minh Company was established in 2011 with its headquarters located in Nghe An. Currently, the company has offices in Hai Phong, Hanoi, Thanh Hoa, Nghe An, Ha Tinh, Da Nang, and Ho Chi Minh City.
Looking at the revenue of Van Minh, we can see that the business situation of this company is developing quite well. Van Minh's 2022 revenue will reach 103 billion VND, an increase of more than 60 billion compared to 2021.
The profit after tax for Van Minh passenger car company is currently on an upward trend. In 2020, the company experienced a loss of 39 billion VND, but within 2 years, the profit returned to a positive number and reached over 600 million VND in 2022. While the profit may not be significant, it is still a positive indication of the company's growth.
Toan Thang
Toan Thang Co., Ltd. is one of the leading companies in terms of quality reputation with more than 500 new cars produced in 2019 - 2020. The route that Toan Thang operates is the route from Ho Chi Minh City to Vung Tau and vice versa. This car company provides car rental services for business, tourism and passenger transport from 4 to 47 seats.
Toan Thang's revenue has been growing steadily in the period of 2020-2022. In particular, the company's revenue in 2022 reached 484 billion VND, showing a significant increase of approximately 44% compared to the previous year. Despite a decrease in profit in 2021, the company's profit has rebounded in 2022 and has shown a stronger growth trend, reaching over 5.7 billion VND.
Hoa Mai
Hoa Mai Company operates in the field of passenger transport tourism services. Hoa Mai provides 9-seat limousine and 16-seat limousine services to transport passengers from Saigon to Vung Tau and vice versa.
Similar to other businesses in the industry, Hoa Mai's revenue in 2021 experienced a significant decrease, only reaching about half of its previous years' revenue. However, it is expected that by 2022, Hoa Mai's revenue will return to its normal level and exceed 78 billion VND. Despite the high revenue, the after-tax profit for this business is not substantial, only reaching 522 million VND in 2022.
Dien Linh
Dien Linh is one of the most popular bus companies because of its good service and reasonable ticket prices. After more than 20 years of development in the passenger transport industry, Dien Linh's offices have covered the provinces of Cao Bang, Lang Son, Hanoi, Lam Dong, Dong Nai, Binh Phuoc, Binh Duong and Ho Chi Minh City.
Dien Linh's revenue in 2022 also increased significantly, showing that this business's post-pandemic recovery is quite good. Specifically, in 2022, Dien Linh car company recorded revenue of 23.9 billion VND, doubling compared to the previous year. Besides, Dien Linh's profit after tax also returned to positive growth but not too large, only a few hundred million dong.
Vietnam's transportation market is being assessed as having strong development potential. However, the operation of the transportation systems of the passenger car companies is not good. The use of information technology in the transportation system is extremely necessary, it will help businesses easily manage the transportation process as well as create opportunities for customers to approach companies.
Source: Vietdata's passenger transport industry report in 2022