Government seeks lawmakers' approval to defer Vietnam Airlines debt repayment

By Son Ha May 15, 2024 | 07:29 pm PT

A Vietnam Airlines aircraft seen at Noi Bai International Airport in Hanoi. Photo by VnExpress/Luu Quy

The government will seek the National Assembly’s approval to delay repayment of the VND4-trillion (US$157 million) debt owed by state-owned Vietnam Airlines, which is still struggling to recover post-Covid.

It will be taken up at the NA’s upcoming session starting on May 20, according to the head of the Government Office, Tran Van Son.

The State Bank of Vietnam lent this money to Vietnam Airlines in 2021 at zero interest to help it recover after two years of the Covid-19 pandemic when most flights were canceled.

The debt is repayable in three years.

Lawmakers also gave the green light for the airline to issue shares to existing shareholders to raise VND8 trillion.

By the end of 2023 the airline had accumulated losses of VND40 trillion.

But the strong rebound by the tourism market and the return of all jets it had leased to subsidiary Pacific Airlines helped Vietnam Airlines Group post its highest quarterly profit of VND4.53 trillion this year.

The carrier is seeking approval for a restructuring it plans to complete by 2025.