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Decreasing number of passengers, cost still increased

Assessing the difficulties that automobile transport enterprises are facing with the effects of the Covid-19 epidemic,Nguyen Van Quyen, President of the Vietnam Automobile Transport Association, spoke about the automobile transport industry. Vietnamese cars also suffered from the serious impact of this pandemic. According to the report of the automobile transport associations of provinces and cities, most of the businesses in automobile transportation and bus stations are facing difficulties due to the negative impact of the Covid-19 pandemic. Specifically, passenger transport decreased by about 30-40%, freight by about 20-30%, especially cross-border export of goods decreased by about 80-90%, revenue decreased seriously, while the costs of disease prevention increased.

Many car companies are trying to stop operations because of fewer passengers. Specifically, in February, five major bus stations in Hanoi recorded a sudden decrease in passengers compared to the same period in 2019. Yen Nghia Bus Station decreased by 42%, Giap Bat decreased by 49%, My Dinh 34%, Gia Lam 18%. Passenger output also plummeted in the epidemic localities such as KhanhHoa (passenger cars decreased by 70%), VinhPhuc (60%), and ThanhHoa (50%). Some provinces have not yet detected infected people, but the number of passengers has still decreased, such as Da Nang, Lang Son, Can Tho.

The low number of cars leaving also causes damage to the bus stations (revenue from entrance fees, wharves and commissions on ticket sales). Meanwhile, businesses have incurred additional costs to prevent epidemics such as wearing masks, protective equipment and still have to pay interest on bank loans and pay salaries for employees. However, according to the regulations, if the garage runs less than 70% of the number of trips, the badge will be revoked and the operation will be suspended, making the garage still maintain operation.

Proposing many support measures

In order to support transportation enterprises to overcome immediate difficulties, the Hanoi Transport Association has proposed a number of support solutions. Accordingly, the State Bank is requested to direct banks and credit institutions to extend debts, lower lending interest rates for loan contracts to invest in transport means, or mortgage at organizations for loans. At the same time, it is proposed to reduce BOT fees from 3% - 5% for vehicles of five tons or more and passenger vehicles of 16 seats or more to reduce transportation costs.

The Transport Association also proposed the State to have a temporary policy of stabilizing gasoline prices until the end of the second quarter of 2020 and encouraging petroleum processing enterprises to improve E5 gasoline output. Forthe Ministry of Transport, it is proposed to cut administrative procedures to reduce labor costs for businesses.

In addition, the Hanoi Transport Association also proposed that the National Assembly and the Government use a part of the stimulus package (estimated at VND 2,000 billion) to support transport units to implement the Government's guidelines in order to ensure sustainable economic growth.

Talking to reporters of Customs Newspaper, Bui Danh Lien, Vice Chairman of Hanoi Transport Association, said that the difficulties of the automobile transport industry have been very clear in recent years. In particular, transport enterprises dealing in vehicles for transporting agricultural products and import and export are the most affected businesses. Next is the tourist passenger transport business, which also saw a huge decrease in the number of tourists because festivals were canceled and people limited the gathering and moving out of crowded places. Many businesses have faced the risk of bankruptcy when the volume of passengers is reduced while the sources such as salaries, car maintenancestill have to be paidevery month.

Not only the business suffered, but the driver's income was also seriously affected. Recently, to support drivers affected by the Covid-19 epidemic, DatCang Transportation and Trading Transport Joint Stock Company decided to support 5% of the total revenue for all employees atthe company in addition to the salary, bonus and percentage ratios as prescribed.

In addition, this company also reduced 10% of all fees and surcharges for all car interest who have franchised business in all forms. The duration of support application is two months, from February 1 to April 15, 2020.