ComfortDelgro Savico Taxi joint venture of Saigon – Savico General Services Joint Stock Company and Singaporean partner had to announce to close to preserve investment.
Recently, Saigon – Savico General Services Joint Stock Company (SVC) has sent an announcement to the State Securities Commission and the Ho Chi Minh City Stock Exchange (HoSE) about the suspension of taxi business. at the Joint Venture ComfortDelgro Savico Taxi.
Savico said that based on the 2017 business plan approved by the General Meeting of Shareholders, Savico and its partner ComforDelgro have completed the restructuring of taxi business at ComfortDelgro Savico Taxi. The treatment ensures the goal of preserving capital contribution of both parties.
Savico also said that the taxi joint venture currently has to suspend its taxi business to study suitable business opportunities.
In the 2017 business update report, Savico’s leaders said that ComfortDelgro Savico Taxi has had consecutive difficulties in the past few years.
After nearly 10 years in operation, this joint venture has to restructure the convoy and improve service quality to maintain the operating rate of approximately 90%, so the cost increases. When there is a profit to offset the accumulated loss, it is subject to fierce market share competition from Grab and Uber.
By the end of 2016, the total assets of this taxi joint venture reached about VND 94.3 billion, mainly of which is equity. In the same year, this taxi joint venture only earned 3.3 billion dong in profit, while the previous year reached nearly 7 billion dong.
ComfortDelgro Savico Taxi Joint Venture, formerly known as Travel Taxi Enterprise of Savico, was established in March 2005 under the form of a joint venture between Savico and ComfortDelGro – a group of public passenger transport of Singapore. The joint venture has a total charter capital of more than 79.3 billion VND, of which, Savico holds 40% of the charter capital, equivalent to 31.7 billion VND.
Meanwhile, Savico was formerly a State-owned enterprise operating in the field of financial investment and cooperation in real estate projects … In 2017, the company earned 13,781 billion dong of net revenue, up slightly compared to 2016 and reported net profit of 139 billion, up 20% year-on-year.
Savico is the owner of a series of Savico MegaMall commercial centers along with owning a series of large car distribution agents in Vietnam including 12 Toyota dealers; 11 Ford dealers, 4 Hyundai dealers and 10 dealerships for other types.
* Source: zing News