Hanoi Metro’s Financial Performance Soars in First Half
Hanoi Metro has achieved a remarkable financial performance in the first half of the year, reporting a tripled profit alongside a 50% increase in revenues, which reached VND393 billion. This significant surge underscores the success of the two currently operational lines, Cat Linh – Ha Dong and Nhon – Hanoi Railway Station, both of which are under the city-owned company’s management. This strong start puts the company on a solid path to meet its ambitious full-year financial targets. With a goal of carrying 19.3 million passengers and earning a profit of more than VND20.7 billion on total revenues of VND878.4 billion, the company has already achieved 48% of its profit target and 45% of its revenue target in the first half. The robust growth momentum suggests a successful strategy in expanding its ridership and revenue streams.
Strategic Initiatives to Enhance Revenue and Reduce Subsidies
Building on its financial success, Hanoi Metro is actively pursuing strategic initiatives aimed at boosting revenues and reducing its reliance on government subsidies. While the existing fare structure, which offers single-ride tickets from VND8,000 to VND15,000 and a monthly pass for VND200,000, provides a foundational revenue stream, the company is focused on exploring new ways to enhance passenger convenience and increase non-fare income. These initiatives are designed to improve the overall financial independence of the city-owned enterprise. By proactively seeking innovative solutions to generate revenue, Hanoi Metro is not only strengthening its business model but also contributing to the city’s broader goal of creating a more sustainable and financially resilient public transportation system for its growing population.
Ambitious Expansion Plans for the Capital’s Rail Network
The positive performance of the existing metro lines is fueling an ambitious long-term vision for Hanoi’s public transportation network. The capital city has set an ambitious goal to have a total of 10 metro routes running over a combined 417 km by 2030. While construction on the remaining eight lines has yet to begin, the city is committed to accelerating the project. The Hanoi People’s Committee recently issued a directive to relevant agencies, instructing them to fast-track efforts to ensure that work begins on two of these new lines in the final quarter of this year. This renewed sense of urgency from city leadership signals a strong commitment to expanding the metro system, which will be a critical factor in the city’s urban development and its capacity to manage a growing and increasingly mobile population in the coming years.
