PM calls for ‘comprehensive plan’ to revive national flag carrier

February 17, 2024 - 08:10

Prime Minister Phạm Minh Chính has urged agencies to develop a ‘comprehensive plan’ to tackle the financial challenges faced by lossmaking national flag carrier Vietnam Airlines.

A Vietnam Airlines aircraft seen at Tân Sơn Nhất International Airport in HCM City. — VNS Photo Bồ Xuân Hiêp

HCM CITY — Prime Minister Phạm Minh Chính has urged agencies to develop a ‘comprehensive plan’ to tackle the financial challenges faced by lossmaking national flag carrier Vietnam Airlines.

During a recent meeting with the State Capital Investment Corporation (SCIC), which oversees public investment in 19 corporations, the PM asked the SCIC to submit a plan within this month.

Vietnam Airlines reported losses of VNĐ11 trillion ($458 million) in 2022 and VNĐ5.5 trillion last year, resulting in accumulated losses of over VNĐ40 trillion.

While the airline’s business result showed signs of improvement in 2023, its consolidated post-tax profit remained negative at about VNĐ5.5 trillion.

Vietnam Airlines has finalised a restructuring plan, currently awaiting review by shareholders and the Government. This plan includes asset restructuring and the issuance of shares to raise capital.

In addition, the PM has asked the Ministry of Finance to revise a decree on government investment to allow Vietnam Airlines to divest its stake in Pacific Airlines.

In addition to addressing the problems facing the carrier, the Government is also focusing on the operation efficiency of other State-owned corporations.

The PM has called on the National Oil and Gas Group (PetroVietnam) and Vietnam National Coal – Mineral Industries Holding Corporation Limited (Vinacomin) to ensure sufficient coal and gas supplies for electricity production as the dry season approaches.

In addition, the PM has requested Việt Nam Electricity (EVN) to make plans to guarantee power supply during the upcoming dry season.

The Ministry of Industry and Trade has been asked to create a proper mechanism for managing petroleum business intermediaries and creating appropriate electricity prices.

The Government will be creating favourable conditions and addressing legal issues related to taxes, land, real estate, and housing in order to facilitate the growth of State-owned corporations, the PM noted. — VNS

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