Airport operator expected to profit from new airport investment

By Dat Nguyen December 8, 2020 | 03:45 am PT

An artist's impression of the departure hall of Long Thanh International Airport in Dong Nai Province, southern Vietnam. Photo courtesy of the Airports Corporation of Vietnam.

The Airports Corporation of Vietnam (ACV) could see post-tax profits rise 24 percent from 2026 to 2035 from its investment in the Long Thanh International Airport.

The operator of 22 airports will benefit from a new revenue stream via landing and take-off fees at the new mega airport to be built in the southern province of Dong Nai, Ho Chi Minh City-based brokerage Viet Capital Securities (VCSC) said in a statement.

The first phase of the airport is scheduled to be completed by 2025. The expected boost in profits will offset the decrease its post-tax profits suffered as a result of the Covid-19 pandemic.

The VCSC report forecasts that post-tax profits will fall 9.8 percent between 2020 and 2025, given that the aviation industry’s recovery will be hampered by the serious pandemic situation in many countries.

For this year alone, the brokerage expects ACV’s post-tax profits to fall 80 percent from last year to VND1.7 trillion ($73.5 million), with the number of foreign arrivals set to plunge 82 percent to 7.5 million.

The brokerage report also warns of risks in the Long Thanh project, such as ballooning costs, delays in expanding the airport’s capacity after the first phase is completed and prolonged international travel restrictions.