Passenger transport business and the challenge of competition.

(Baonghean) - Currently, road transport businesses in the province are experiencing many positive changes in terms of management, operation, and service quality. However, transport businesses are facing the challenge of competition.

To date, the province has 96 cooperative enterprises operating road transport services, of which more than 30 units provide fixed-route and contract passenger transport. These transport units have organized 158 fixed-route passenger transport services connecting 14 bus stations in Nghe An to domestic bus stations and to Laos. This includes 31 intra-provincial routes, 121 inter-provincial routes from Nghe An to other provinces and cities in Vietnam, and 6 fixed international routes to provinces and cities in Laos. Specifically, the 31 intra-provincial routes have 428 operating vehicles, while the 121 inter-provincial routes have 673 operating vehicles.

Currently, there are 6 bus companies operating in the province, providing a fairly good service to meet the transportation needs of the people.

Currently, there are 6 bus transportation companies: Dong Bac Trading & Construction Co., Ltd. (Nghe An branch), Ngoc Anh Trading and Tourism Company, Thach Thanh Transport & Tourism Private Enterprise, Tan Phuong Thao Service & Tourism Co., Ltd., Tho Lam Transport Joint Stock Company, and Thong Nhat Automobile Transport Joint Stock Company. These companies invest in and operate public bus transportation on 11 routes.

In addition, passenger transport by taxi has 14 businesses operating in the province with more than 1,000 vehicles (Mai Linh, Van Xuan, Vinh, Thanh Chuong, Mekong, Lac Hong, Song Lam, Ba Thuy, An Binh, etc.).

Van Minh is a private company specializing in passenger transportation on the Vinh-Hanoi route and vice versa. Although it has not been operating for long, the company has proven its correct direction and sustainable effectiveness thanks to its professional approach and established business reputation. From having only 2 vehicles (in 2007), the company now has 24 sleeper buses, operating at full capacity and always fully booked.

Explaining the success of Van Minh Company in the current difficult and highly competitive environment, a representative of the company's leadership shared: "We always put the interests and convenience of our customers first. Currently, after Van Minh, many other private transportation companies have also applied customer service such as shuttle services to pick up and drop off customers at home, booking tickets via phone, etc. However, the attitude of our staff towards customers is one of the factors that attracts customers to Van Minh. In addition to carefully selecting employees with quite strict requirements regarding appearance, level of awareness and work ability, Van Minh also regularly organizes training courses and competitions to improve the capacity and customer service awareness of its staff. As a result, most customers are very satisfied after using the company's transportation services."

However, currently, passenger transport businesses are facing many difficulties. There are not many businesses operating as efficiently as Van Minh. Mr. Phan Huu Man – Chairman of Binh Minh Transport Cooperative – said: Currently, the cooperative has over 100 vehicles operating within and outside the province. Business is very difficult, especially on intra-provincial routes, due to the large number of private vehicles, which compete with buses and reduce market share. Therefore, the number of vehicles on many routes has decreased significantly, or even disappeared. During peak periods, the cooperative had over 80 vehicles operating within the province, but now there are fewer than 50. Some routes, such as Thanh Chuong (which previously had 5 vehicles, but all have been sold), Quynh Luu (which used to have many vehicles but now has none), and Tan Ky (which went from 8 vehicles to only 2)…

Many bus companies are facing fierce competition from other types of passenger transport (pictured: buses waiting to depart at Vinh bus station).

Mr. Nguyen Van Hung, Chairman of the Nghe An Passenger Transport Association, stated: "Transport businesses using automobiles are burdened with too many taxes and fees. In recent years, the number of transport vehicles in Nghe An has increased rapidly, especially passenger transport, leading to an oversupply and a decrease in revenue per vehicle. Meanwhile, the province's regulations on minimum revenue for tax calculation have continuously increased, each year higher than the last, exceeding the capacity of businesses. The Nghe An Tax Department's issuance of Official Letter No. 727 dated May 22, 2014, regarding the management of transport business activities is not in line with reality. The Tax Department has not conducted surveys of the situation and business practices of enterprises and cooperatives to establish appropriate minimum revenue targets."

“To ensure fairness in determining tax obligations according to the law, to ensure the correct and full collection of taxes for the state budget, and at the same time to help businesses operate stably and develop, we propose that the Provincial People's Committee direct the Tax Department to conduct a survey of the current business situation at passenger transport businesses and cooperatives in the area with the participation of the Association to build a minimum revenue threshold as a basis for tax payment accordingly,” said the chairman of the Nghe An Transport Association.

To survive and thrive in today's competitive environment, businesses need to improve service quality and meet the ever-increasing demands of passengers in order to operate sustainably in such a fiercely competitive environment. In reality, many businesses struggle to survive, but many others operate effectively by investing in brand building, from the quality of their vehicles to their customer service.

Phu Huong - Thu Huyen