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ACV pours $263m into expanding major airports

Update: July, 19/2017 - 09:00
Passengers stand in line before boarding at Nội Bài International Airport, Hà Nội. - VNS Photo Thái Hà
Viet Nam News

HÀ NỘI — The Airports Corporation of Vietnam (ACV) plans to undertake projects on upgrading infrastructure of major airports with total investment capital of more than VNĐ6 trillion (US$263.38 million).

The goal is to ensure security and service quality and meet the aviation sector’s growth demand.

Of the fund, some VNĐ2 trillion will be spent on the second phase of expanding the international terminal at the Tân Sơn Nhất International Airport and airfield. Meanwhile, some VNĐ1.2 trillion will be invested on upgrading terminal T1 and the airfield of the Nội Bài International Airport.

As for the Đà Nẵng International Airport, ACV will build a VIP guest room and upgrade the airfield worth VNĐ150 billion, which is in front of the airport’s international terminal, as preparation for the 2017 APEC (Asia-Pacific Economic Cooperation) Summit, which will be officially held in central Đà Nẵng City in November.

ACV will also spend another VNĐ2 trillion on expanding the terminals and the airfield of the Phú Quốc International Airport in the southern province of Kiên Giang, which is expected to receive five million passengers per year.

ACV expects to serve 91 million passengers this year, marking a year-on-year increase of 13 per cent, of which 27 million will be international guests and the remainder of 64 million will be domestic passengers, up 14 per cent and 12 per cent, respectively.

The corporation, which is listed as ACV on the Unlisted Public Company Market (UPCoM), has set a target of earning more than VNĐ13 trillion this year, making a pre-tax profit of VNĐ3.67 trillion. It is estimated to pay dividend at the rate of 9 per cent.

A report from ACV showed that it earned nearly VNĐ7.3 trillion in the first half of this year, which was 55 per cent of the yearly target, making the after-tax profit of nearly VNĐ2.3 trillion, or 68 per cent of the yearly target.

At the annual shareholders’ meeting held last month, the shareholders voted Lại Xuân Thanh, head of the Civil Aviation Authority of Việt Nam, to be the corporation’s chairman, replacing Nguyễn Nguyên Hùng who retired.

Thanh assumes the new role in the 2016-20 period as representative of State-owned capital at the corporation.

The corporation is operating under parent company – subsidiaries model, managing 22 airports nationwide, of which seven are international airports including Phú Bài, Cam Ranh, Phú Quốc and Cần Thơ, in addition to 15  domestic airports including Buôn Ma Thuột, Liên Khương, Cà Mau and Điện Biên. — VNS

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