Transport sector faces numerous difficulties due to COVID-19

Bus companies, railway and airline firms have been struggling to survive amid the impacts of COVID-19 for a year and a half.
Transport sector faces numerous difficulties due to COVID-19 ảnh 1Only some passengers check in at Noi Bai International Airport due to the COVID-19 pandemic. (Photo: VNA)
Hanoi (VNS/VNA) - Bus companies, railway and airline firms have been struggling tosurvive amid the impacts of COVID-19 for a year and a half.

Althoughthey have reduced their workforces and slashed operating costs, firms stillface bankruptcy.

Khuc HuuThanh Hai, Director of Dat Cang Transport, Trading and Service Joint StockCompany, said his company had temporarily suspended about 80 percent oftheir vehicles from operation.

Among thevehicles still in operation, the highest number of passengers per vehicle onlyreached about 20 percent compared to the past, he said.

“We still donot know when we will fully recover,” he said.

Thesituation would be much worse if the pandemic’s developments stayed complexlike now, he said.

“We can'tthink of another way to survive except for minimising costs,” he added.

Do Van Bang,Director of Minh Thanh Phat Company Limited, said since early May, most of the company'scoaches were suspended from running due to a lack of passengers.

The companyhad 100 coaches, however, only 2-3 coaches were in use, he said.

Currently,the company only earned 2 million VND (86 USD) per trip from Hanoi to LaoCai while the operating cost for a trip was up to 7.5 million VND (324 USD), hesaid.

Thus, therevenue failed to cover operating costs, he said.

“The numberof passengers is very small, many drivers and employees have quit their jobs,”he said.

Many busstations have fallen into the same situation because of the absence of vehiclesentering the station.

Ly TruongSon, Director of My Dinh Bus Station, said an estimated 800 buses departeddaily before the pandemic.

But now thenumber was only 350 and the number of passengers was very small, headded.

“If theCOVID-19 pandemic still shows complex developments, both transport companiesand bus stations will go bankrupt,” he said.

The railwayand air transport sectors have the same problems.

Nguyen Viet Hiep, General Director of Hanoi Railway Transport Joint Stock Company, said due to the impacts of the pandemic, in the first quarter of 2021, an average of 550 labourers had their contracts suspended each month and the company also terminated the contracts of 66 others each month.

Statisticsof the Civil Aviation Authority of Vietnam show that on April 29, Vietjet Airoperated 366 flights, transporting more than 60,000 passengers, by May 15,there were only 61 flights and 8,000 passengers. On April 29, Vietnam Airlinesoperated more than 420 flights and transported more than 70,000 passengers, byMay 15, the numbers were only 45 flights and 6,000 passengers.

Otherairlines are in the same situation.

Solutions

In responseto the situation, the Ministry of Transport has submitted some policies toPrime Minister Pham Minh Chinh to help the transport sector survive duringthe pandemic.

The ministryproposed extending the policy of reducing 50 percent of fees for aircrafttake-off and landing services for domestic flights as well as extendingpolicies providing favourable credit deals, bank interest rates and paymentterms for businesses.

Fortransport enterprises, the ministry proposed extending the validity of CircularNo. 112/2020 on the collection of some fees and charges until the end of 2021to extend the time of reducing 30 percent of road maintenance fees for coachesand 10 percent for trucks until the end of this year.

The ministryalso asked to reduce the value-added tax to zero, reduce 50 percent ofcorporate income tax for companies seriously affected by the pandemic, delaypayment for six months for the tax amounts that companies had to pay until theend of 2021 and charge no fees for parking and picking up passengers atairports, train stations and ports.

The StateBank of Vietnam and commercial banks were asked to continue implementingpolicies to support transport companies by reducing or not charging interest onloans and offering debt rescheduling, the ministry said./.
VNA

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