Thai Binh Bus JSC: Service Improvement in Focus

Thai Binh Bus Joint Stock Company was founded in 1974, initially named Thai Binh Transport State Owned Enterprise. It changed the name to Thai Binh Bus Company in 1980 and transitioned from a state enterprise into a joint stock company in 2001. After over 10 years of development, Thai Binh Bus Company has not only kept its leading position in provincial passenger transport but also thrived in business activities, creating many jobs for local people.

 

At the beginning of the transition, the company had difficulties in capital and human resources. Confronted such challenges, the Board of Management and Directors discussed and came to an agreement of giving fixed rate of materials to its staff. Besides strengthening production management mechanisms, rearranging transport means, and moving all high-quality buses to key routes, the company also invested to continuously in new equipment.

 

At the same time, to raise competitiveness through increasing service quality, the company usually gives priority to raising drivers’ awareness of responsibility, and strictly punishes or dismisses those who harm the company’s reputation. In addition, the Board of Directors also encourages the company to expand into new high quality transport routes to replace ones with inefficient operation, as well as actively seek more transport contracts. Comprehensive application of these flexible measures has made significant progress for the company’s transportation business. Annual passenger volume reaches 745,000 people. Total turnover in 2010 came to over VND23 billion.

 

However, at the moment, the company has to face many difficulties with inadequate governmental regulation in transport, especially passenger transport. Currently, transportation means are mushrooming; planning for stations is inappropriate; and the problem of unlicensed coaches and stations is getting worse. In fact, the management, investigation, review and unfair implementation of procedures and policies are creating big gaps which allow unfair competition among transportation units. Director Phan The Hung said that at present, the company is experiencing fierce competition in all routes. Especially for long distance routes, since the company picks up passengers mainly through private ticket agents and get price pressure from those agents themselves, loss in some routes is inevitable. In such fierce competition, improving equipment quality is one solution for survival. However, mobilization of all capital resources is always difficult; it is challenging and time consuming to borrow from banks, which cannot quickly meet increasing passenger demands. There are still drivers missing appointments, delaying monthly turnover payment, hiring outside people to replace their positions by themselves, or abandoning company busses and bringing private vehicles onto the market. These are intractable issues common to many transport enterprises, and not easily handled in a short time.

 

To improve service quality in this challenging context, the company will continue to invest in equipment renovation, extend its business, and renew management methods to assert its position in passenger transport in Thai Binh.