AsemconnectVietnam - Vinasun Corporation is working on a major plan to increase its chartered capital and invest in 1,225 new taxicabs to mainly serve the HCMC market following a strong rise in revenue last year.

Most shareholders of Vinasun have voted for the plan to bring the company’s chartered capital to VND565.5 billion from the current VND435 billion by issuing more than 13 million more shares in order to have fresh money for the new cars.

At a recent general meeting, leaders of Vinasun explained the new cars would enable the firm to meet the increasing demand for taxi service in HCMC, Danang and Nha Trang. Vinasun has been licensed to operate in the central coast holiday city of Nha Trang with 100 taxicabs in the initial time.

Notably, Vinasun will expand its fleet in HCMC to around 1,000 cabs this year while the city government is restricting new taxicabs on the road to deal with worsening traffic congestion. However, Vinasun explained that the company had been allowed to do it because other taxi operators had not purchased new cars as earlier licensed, so there is room for Vinasun to buy fresh vehicles.

Furthermore, Vinasun will replace 475 old cabs this year to better serve customers in the country’s southern economic hub where the firm holds 40% market share.

Vinasun also plans to expand to Hanoi.

Despite rising operational costs and other negative factors, Vinasun still looks to achieve total revenue of nearly VND3.46 trillion and after-tax profit of VND257 billion this year compared to the VND3.16 trillion and less than VND225 billion attained last year.

In the first quarter of this year, the company posted revenue of nearly VND900 billion.

Source: Saigon Times Daily