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Vietnam’s first subway line starts running at a loss



Hanoi Metro Line 2A from Cat Linh to Ha Dong Vietnam’s first completed subway line, Hanoi Metro Line 2A, also known as the Cat Linh-Ha Dong subway line, had a slow start, at least in terms of profitability and passenger acceptance. Hanoi Metro, which operates the elevated mass transit railway that started operations on November 6, 2021, lost 64 billion dong ($2.75 million) in less than two months last year. The revenue is only VND 5 billion, while the operating cost is close to 60 billion…

Hanoi Metro Line 2A from Cat Linh to Ha Dong

Vietnam’s first completed subway line, Hanoi Metro Line 2A, also known as the Cat Linh-Ha Dong subway line, had a slow start, at least in terms of profitability and passenger acceptance.

Hanoi Metro Company operates the elevated rail transit railway, start operation It lost 64 billion VND ($2.75 million) in less than two months last year as of November 6, 2021.

During this period, revenue was only VND 5 billion, while operating costs were nearly VND 60 billion due to slow public adoption and passenger numbers that were still lower than expected. High labor costs exacerbate the problem, Vietnam Express report. Also, for the first 15 days, rides are provided free of charge as a bonus.

Air ticket subsidy in preparation

The fourth Covid-19 outbreak that hit Vietnam from April 2021 required strict social distancing measures, thus negatively impacting the economy of the entire country, including the transportation business, a company representative said. The representative said the subway line was not yet subsidized by the city, resulting in relatively high fares and appeared to be discouraging people from using the line.

Meanwhile, the Hanoi People’s Committee passed a resolution to spend 14.5 billion VND (about $624,000) a year to subsidize the fares of subway lines, which should cover 2022 and beyond.

The subway line is 13 kilometers long from Jiling city center to Hexinan District, and the journey takes about 23 minutes. Currently, one-way fares range from VND 8,000 to 15,000 (USD 0.35 to USD 0.66), depending on the distance. The daily ticket is 30,000 dong and the monthly pass is 200,000 dong.

By comparison, tickets for Hanoi’s extensive city bus network start at VND 7,000, while the average distance by motorcycle taxi usually costs around VND 10,000.

Offline to open at the end of 2022 at the earliest

Hanoi Metro Line 2A has transported 3.16 million passengers in the first six months of operation, the operator said.

It is one of 10 lines planned by Hanoi by 2030, with a total network length of 417 kilometers. The next line to be opened is Line 3, also known as the Van Mieu Line, from the western suburbs of Nonh to the Hanoi train station in the city centre. It is currently under construction and is expected to be operational by the end of 2022 or early 2023.



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