Ferry operator Superdong loses $277,000 from falling Phu Quoc tourism

After three consecutive profitable quarters, ferry operator Superdong Kien Giang recorded a VND6.8 billion (US$277,211) loss last quarter due to bad weather and declining tourism demand to Phu Quoc island.

In the fourth quarter of 2023, Superdong earned nearly VND69.4 billion in revenue, down 17.5% year-on-year, while its gross profit slid 29% year-on-year to VND4.57 billion, according to the firm’s recent financial report.

Its board of directors blamed the loss on the slow domestic tourism on Phu Quoc Island and powerful winds shutting down two of its major ferry lines, the Phu Quoc Island – Rach Gia City route in Kien Giang Province, and the Phan Thiet City – Phu Quy Island route in Binh Thuan Province, for over 10 days.

The ferry operator’s profit totaled over VND30 billion each quarter in the first half of 2023, and VND7.8 billion in the third quarter.

Superdong thus still hauled in VND69.7 billion in total profit for the year, up 62.4% from 2022.

News about price gouging in Phu Quoc in the third quarter of 2023 led many domestic tourists, the main users of Superdong’s fast ferry services, to switch to other cheaper locations.

Superdong has been reorganizing its ferry schedule to match traveler volumes and optimize costs while simultaneously running promotions to help boost tourism.

The firm is currently operating 16 fast ferries and two RORO ferries carrying passengers, vehicles and goods from the mainland to Kien Giang Province’s Phu Quoc and Nam Du islands, Binh Thuan Province’s Phu Quy Island, and Ba Ria – Vung Tau Province’s Con Dao Archipelago.

It has one of the highest market shares among firms providing island transport services in Vietnam.

This year, the firm plans to invest in upgrading ferries to speed up existing routes, and it is also slated to buy new ones to open a new HCMC – Vung Tau City route and re-establish the Rach Gia City – Hon Nghe Island and Phu Quoc Island – Nam Du Island routes in Kien Giang Province.

By Tat Dat – VnExpress.net – January 22, 2024