VETC Narrows Over Decade-Long Accumulated Losses, Faces Ongoing Challenges in Vietnam's ETC Sector

More than a decade after the implementation of the non-stop toll collection system (ETC) in Vietnam, VETC Joint Stock Company (VETC) has achieved profitability in recent years but still carries accumulated losses exceeding 420 billion VND. According to the interim reviewed financial report submitted to the Hanoi Stock Exchange (HNX), VETC recorded revenue of 327.1 billion VND in the first six months of 2026, a 17.3% increase year-on-year. Profit after tax reached 53.2 billion VND, up nearly 9%. However, as of June 30, 2026, the company's accumulated losses stood at over 420.47 billion VND, a reduction of 47.85 billion VND from the end of 2025. Equity was 272.4 billion VND, while charter capital was 747.4 billion VND. The substantial accumulated losses were primarily incurred during the initial phases of deploying the ETC system, which required significant investment in technology, equipment, and infrastructure before commensurate revenues could be generated. VETC reported continuous losses from 2016 to 2022, with some years seeing losses as high as approximately 300 billion VND. From 2022 to 2023, as ETC was more widely adopted and VETC was licensed to provide payment intermediary services, its revenue streams gradually improved. The company began to turn a profit in 2024. In 2025, profit after tax was around 136.3 billion VND, approximately six times higher than the previous year. Despite this, accumulated losses still exceeded 468 billion VND by the end of that year. In the first half of the current year, VETC continued to report positive profits, helping to reduce its accumulated losses to just over 420 billion VND. Tasco Joint Stock Company (HUT) is the majority shareholder, owning over 99% of VETC. VETC holds approximately 75% of the ETC market share, connecting 136 toll stations with 765 lanes nationwide. The system processes an average of 1.8 million transactions daily, with about 4.3 million users of its application, of which 3 million utilize its e-wallet. Beyond ETC, VETC has expanded into services such as parking fee collection, electric vehicle charging payments, fuel, insurance, and roadside assistance. In 2025, the company's revenue reached 666 billion VND, a 35% increase from the previous year. Alongside its operational expansion, VETC has also been active in capital raising. In July 2025, the International Finance Corporation (IFC), a member of the World Bank Group, purchased 500 billion VND of VETC's 5-year convertible bonds with a 5% annual interest rate. As of June 30, 2026, VETC's total liabilities exceeded 3.05 trillion VND, an increase of nearly 2.8% compared to the same period last year. While bank loans decreased by over 80 billion VND to 650 billion VND, its debt from bond issuance neared 500 billion VND. Other payables, which constitute the largest portion, decreased from over 2.237 trillion VND to approximately 1.9 trillion VND. Following customer backlash over its proposed monthly e-wallet management fees of 6,600 VND for individuals and 66,000 VND for organizations, VETC has decided to temporarily suspend their implementation.