HANOI, NNA - Japanese regional railway operator Enshu Railway Co. will set up a wholly owned software development subsidiary in Vietnam in July.
The Hanoi-based unit, Entetsu Vietnam Co., will be capitalized at 30 million yen ($274,000) and start operations in August, the company, which also runs bus and other transportation services mainly in the Hamamatsu area in Shizuoka Prefecture, central Japan, said Thursday.
Entetsu Vietnam will be engaged in developing web-based information technology systems and smartphone apps and creating websites in order for its parent to upgrade its services.
Enshu Railway, which has a track record of hiring foreign students as full- and part-time employees in IT-related departments at its head office in Hamamatsu, plans to employ local engineers for the subsidiary.
With its launch, the company will close its representative office in the Vietnamese capital, which was opened in March last year.
Under its three-year business plan through last March, Enshu Railway pursued diverse lifestyle and daily living services that also involved the real estate, insurance, nursing care, retailing and leisure sectors while promoting in-house digital transformation.
But its business, particularly in the mainstay transportation sector, has been hit by the coronavirus pandemic. For the six months through September, it fell into the red with a net loss of 146 million yen compared with a net profit of 1,938 million yen a year earlier. (NNA/Kyodo)