Lang Son supports pandemic-hurt transport service providers

(LSO) – In light of falling revenue in the first quarter of 2020 caused by the impact of the novel coronavirus disease (COVID-19), many transport service providers have scaled down services and cut costs as part of the ways to maintain operation. Local authorities have also taken measures to support those businesses to overcome difficulties during this time.

Phung Manh Hung, Director of the Long Thinh CarVip JSC in Lang Son city, said his company operates bus services connecting Huu Nghi, Lang Son and Hanoi with 10 7-seat Kia Sedona vehicles. As the number of passengers has dropped significantly since the beginning of the year, the firm had to suspended operation of four vehicles. Its revenue of the first three months thus plunged 60 percent from the same period last year.

Son Duc transport joint venture has halted operating all of its 50 vehicles since the end of January and, as a result, no revenue from transport services was reported since then. It has been struggling to not only cover fixed costs but also pay off loans taken out to upgrade its fleet last year. The company had to lay off 50 percent of its drivers and sell 14 of its vehicles to repay the debts.

Son Duc transport joint venture has ceased the operation of all of its 50 vehicles for nearly 2 months.

In the first three months of this year, the number of passenger vehicles registered to operate at the northern coach station of Lang Son city has reduced 40 percent year on year to 180, said Nguyen Minh Phuong, Director of the Sao Vang JSC that operates the station.

Local commercial banks have stepped in to help buffer the punch of the COVID-19 on those businesses, introducing new support policies. Director of the BIDV’s Lang Son branch Be Van Anh said the bank has cut interest rates by 0.5 – 1.25 percent a year in nine months for COVID-19-hit transport enterprises and extended due loan payment dates for three businesses with a total outstanding loan of 202 billion VND.

Provincial branches of Agribank, Techcombank and others have also done the same to support affected firms.

Sao Van JSC has also slashed monthly fees, worth around 200 million VND, for five coach service providers, including Doan Ket, Hoang Dong and Cao Loc transport cooperatives.

Lang Son province has asked the State Bank of Vietnam to urge commercial banks to launch more support policies and proposed the government to consider extending deadlines for land lease and tax payment for the affected firms./.

–      By the end of February 2020, Lang Son had had 172 transport services providers running nearly 2,000 vehicles. –      In the first quarter of the year, the COVID-19 outbreak has taken a heavy toll on the provincial transport sector: o   Passengers totalled 316,000, down 87.8 percent. o   Cargo totalled 248,000 tonnes, down 78.7 percent. o   Transport revenue valued 39.3 billion VND, down 84 percent.