PM wants solutions for Vietnam Airlines revival

By Phuong Dung   February 15, 2024 | 07:22 pm PT
PM wants solutions for Vietnam Airlines revival
A Vietnam Airlines aircraft seen at Dien Bien Airport in Dien Bien Province, northern Vietnam. Photo by VnExpress/Ngoc Thanh
Prime Minister Pham Minh Chinh has instructed government agencies to resolve the difficulties faced by lossmaking Vietnam Airlines.

He said the State Capital Investment Corporation, Vietnam’s sovereign fund, should furnish a plan to revive the state-owned carrier within this month. The SCIC manages public investment in 19 corporations.

The airline, which was severely affected by the Covid-19 pandemic, has been struggling to recover since.

It reported losses of VND11.22 trillion ($458 million) in 2022 and VND5.5 trillion last year.

Its accumulated losses now exceed VND40 trillion.

Vietnam Airlines has completed a restructuring plan, which is being reviewed by its shareholders and the government.

It includes restructuring its assets and investment portfolio to increase revenues and issuance of shares to raise capital.

The Ministry of Finance is amending a decree on government investment to allow Vietnam Airlines to sell its stakes in Pacific Airlines.

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