Passengers travel on HCM City’s first metro line, which is targeted to generate $23.4 million in revenue this year. — VNS Photo Bồ Xuân Hiệp

HCM CITY — The operator of HCM City’s first metro line has been tasked with generating more than VNĐ615 billion (US$23.4 million) in revenue this year, equivalent to an average of about VNĐ1.7 billion a day, according to a decision released by the city government on Tuesday.

HCM City owns 100 per cent of the capital of HURC, the state-owned company responsible for operating Metro Line 1, which links central HCM City with the eastern gateway.

Under the city’s targets, HURC is required to achieve total revenue of VNĐ615 billion and after-tax profit of nearly VNĐ22 billion this year.

Its return on equity is targeted at 8.15 per cent, meaning the company is expected to generate more than VND8 in net profit for every VNĐ100 of equity.

The company is also required to fulfill public service obligations ordered by the State and ensure that service volumes and quality meet prescribed standards.

The 2026 revenue target represents double-digit growth from 2025, the first year HURC operated the metro commercially for a full 12 months.

HURC generated VNĐ547 billion in revenue last year, about 50 times its 2024 figure.

The company reported a substantial profit, exceeding its target and eliminating accumulated losses incurred between its establishment in 2019 and the start of commercial operations.

Most of HURC’s revenue comes from government subsidies, calculated based on the distance operated and an agreed rate per kilometre with the HCM City Public Transport Management Centre. Other revenue comes from passenger fares and infrastructure maintenance.

Metro Line 1, officially known as Bến Thành-Suối Tiên, is nearly 20 km long and connects downtown HCM City with the eastern part of the city.

It is the city’s first urban railway project, with total investment of more than VNĐ43.7 trillion.

The line took 12 years to complete and has 14 stations, including three underground stations in central HCM City.

Fares range from VNĐ6,000 to VNĐ20,000 per trip, depending on travel distance and payment method.

Passengers can also buy unlimited one-day, three-day and monthly passes for VNĐ40,000, VNĐ90,000 and VNĐ300,000, respectively. Monthly passes for students are priced at VNĐ150,000.

HCM City aims for urban railways to account for 20-30 per cent of the city’s travel demand by 2030, rising to 35-50 per cent by 2035 and 50-60 per cent by 2045.

The city plans to roll out multiple urban railway projects in phases. In addition to Metro Line 1, it aims to complete five more lines over the next five years, bringing the total urban railway network to 187 km.

The expansion will be combined with transit-oriented development (TOD) to promote higher-density development around public transport hubs and reduce reliance on private vehicles. — VNS