Vinasun’s tragedy: “pine tree” revenue, loss for 2 consecutive years, suddenly cut nearly 2,000 employees in just the last 3 months of the year

Vietnam Anh Duong Joint Stock Company (Vinasun) has just announced its financial report for the fourth quarter of 2021 with continued loss results.

Specifically, the company’s revenue reached 89 billion VND while the cost price was up to 124 billion VND. Therefore, Vinasun has a gross loss of 35 billion dong. In the last 7 quarters, Vinasun has 5 quarters of business below cost. Something that never happened before.

Deducting expenses, Vinasun’s main business activities lost more than 50 billion dong. In addition, the company still lost nearly 40 billion dong from other activities, so in total, in the fourth quarter of this year, Vinasun reported a loss of 90 billion dong, equivalent to the third quarter. This was the 8th consecutive quarter of Vinasun’s loss, marking a round mark. 2 years of losses since the Covid-19 epidemic appeared. However, even before Covid-19, Vinasun’s business results gradually showed signs of going down under competitive pressure from technology car companies, typically Grab.

Explaining the cause of the loss, Vinasun said the cause was still the Covid-19 epidemic. Most of the company’s cars have to stop working due to the state’s anti-epidemic regulations.

Accumulated in 2021, Vinasun achieved net revenue of VND 485 billion, the lowest in the past 14 years and the 5th consecutive year of negative growth.

In terms of profit, Vinasun ended 2021 with a record loss of 277 billion dong. Thus, after 2 years of Covid, the company has lost a total of 488 billion VND. If the situation does not improve in 2022, Vinasun may lose for 3 consecutive years and on the stock exchange, the company’s shares are at risk of being delisted.

A remarkable thing in the fourth quarter is that Vinasun has just cut nearly 2,000 employees, down from 3,805 people to only 1,877 people. This is Vinasun’s biggest cut since reducing 10,000 employees in 2017. Even Ms. Nguyen Thi Dang Thu, who has been with Vinasun for 19 years and is Deputy General Director, has been laid off to work. company downsizing its business and restructuring its apparatus.

In total in 2021, more than 2,500 Vinasun employees have left the company. According to information from Vinasun’s management, out of 2,500 people who quit last year, there were about 700 office workers and 1,800 drivers.

Thus, in the past 5 years, the number of Vinasun employees has decreased from more than 17,000 people to just under 1,900 people.