Airport project in Long Thanh generates enormous profit in 2023 with over 6,500 trillion bad debts

ACV, the aviation port tycoon, has just announced great news for shareholders as it recorded a net profit of over 8,500 billion VND in 2023, surpassing the pre-pandemic period.


In the fourth quarter of 2023, ACV recorded net revenue of nearly VND 5,050 billion and net profit of over VND 1,560 billion, representing respective increases of 24% and 25% compared to the same period. The significant increase in profits of the airport conglomerate mostly came from its core activities and happened amid the recovery of the domestic aviation industry and the gradual return of international tourists.

Moreover, ACV also achieved a “dreamlike” gross margin and experienced a strong increase compared to the previous period. While the gross margin for every VND 100 of revenue was 46 VND in the same period, in the fourth quarter of 2023, this figure increased to 53 VND.

In addition, the financial sector also made a substantial contribution. In the fourth quarter of 2023, financial revenue increased slightly to nearly VND 650 billion, mainly from interest on deposits and exchange rate differences. At the end of 2023, ACV had deposits of VND 25,900 billion in the bank.

Business results in the fourth quarter of 2023 for ACV

Unit: VND billion

For the whole year 2023, ACV recorded net revenue of over VND 20,000 billion and net profit of over VND 8,560 billion, representing respective increases of 45% and 18% compared to the same period. This level of profitability has also surpassed the pre-COVID-19 period.

Annual business results for ACV

Looking back on 2023, Mr. Vu The Phiet, CEO of ACV, stated that the company still faced many difficulties and challenges despite the significant recovery of the aviation industry. During this period, ACV served 113.5 million passengers, an increase of 15% compared to 2022, including 32.6 million international visitors, an increase of 173% compared to 2022. Total cargo throughput reached 1,207 thousand tons, and the total number of takeoffs and landings reached 710 thousand flights.

Short-term receivables amounted to nearly VND 13 trillion, with difficult-to-collect provisions exceeding VND 3.6 trillion

In terms of the balance sheet, ACV held more than VND 42.7 trillion in short-term assets, including nearly VND 28.7 trillion in cash and deposits. In terms of long-term assets, unfinished construction costs increased to over VND 7.85 trillion, from a level of VND 4.76 trillion at the beginning of the year.

Of note, the airport conglomerate currently has short-term receivables of nearly VND 12.8 trillion, including more than VND 6.5 trillion in bad debt and provisions for difficult-to-collect receivables of more than VND 3.6 trillion.

By the end of 2023, the short-term bad debt was concentrated in Vietjet (VND 2 trillion), Bamboo Airways (VND 2.1 trillion), Vietnam Airlines, and Pacific Airlines (VND 2 trillion)…

On the other side of the balance sheet, payables amounted to VND 16.6 trillion, including more than VND 400 billion in short-term lease-financing and more than VND 10 trillion in long-term loans.

Advancing the Long Thanh Airport project and Terminal 3 of Tan Son Nhat International Airport

Currently, ACV is the investor of many aviation projects, with the total investment amount of ongoing projects being VND 133,264 billion. Among them, the most notable projects are the Long Thanh International Airport project and Terminal 3 of Tan Son Nhat International Airport.

Regarding Project Component 3, the essential construction works in the airport within the Investment Project for the Construction of Long Thanh International Airport Phase 1, the implementation progress of the project’s items has closely followed the plan and met the guidance of the Government so far.

Concerning the project to build Terminal 3 of Tan Son Nhat International Airport, ACV has started the 12th bidding package – “Construction and installation of Terminal 3 passenger terminal” with a contract value of VND 9,034 billion on August 31, 2023.

“At present, the basic site clearance work has been resolved, the construction progress is ensured, and it is in accordance with the plan. The completion of the foundation construction is aligned with the time frame for implementing bidding package No. 12,” an ACV representative said.

Vu Hao

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