ACV plans to raise capital to expedite completion of Long Thanh and Tan Son Nhat airports

ACV proposes early approval of capital increase from retained earnings of the Company, aiming to increase capital through airport areas to reduce the burden on the state budget for investment in the upgrade and repair of airport areas, and to decrease the proactive role of port enterprises in investment and development.

0
106

Mr. Lai Xuan Thanh – Chairman of the Board of Directors of ACV. Photo VGP

Reporting at the Lunar New Year Meeting of Outstanding State-Owned Enterprises on March 3, Mr. Lai Xuan Thanh – Chairman of the Board of Directors of Airports Corporation of Vietnam (ACV) provided information that international passenger traffic in the first 2 months of the year continued to increase by 44%. Therefore, the international market has returned to the level of Tết holiday in 2020. The company’s revenue and profit also increased.

Australia, the US, North Asia, and Southeast Asia markets all experienced growth. International airports with significant growth include Phu Quoc with a 282% increase, Cam Ranh with a 184% increase, Phu Bai with a 100% increase, and Noi Bai and Da Nang with a 35-45% increase.

Regarding infrastructure investment, ACV has been approved by the State Capital Management Committee to implement 3 important projects: development strategy, restructuring, and medium-term infrastructure investment. Currently, ACV is implementing projects with a total investment of 138,000 billion VND out of the total of 165,000 billion VND for the period 2021-2025, ensuring the implementation of the medium-term plan.

In addition to key projects, there are also projects that have been recently directed by the Prime Minister and approved by the Chairman of the State Capital Management Committee, such as Dong Hoi, Tuy Hoa… By 2025-2026, the total capacity will increase to over 150 million passengers per year, with the company’s total assets reaching about 115,000 billion VND, compared to 45,000 billion VND in 2016 when it was equitized.

Rendering of Long Thanh airport

Regarding projects, ACV is determined to follow the government’s directions. The Tan Son Nhat Airport project will be completed 2 months ahead of schedule to celebrate the anniversary of the Southern Liberation Day (April 30). Similarly, the international Long Thanh airport project is also striving to meet the minimum deadline of 2 months.

In order to achieve the set targets, ACV suggests early approval of additional capital from retained earnings for the company to move towards increasing capital through the airport area, reducing the financial burden on the state budget in investing in upgrading and repairing the airport area, and giving more autonomy to port businesses in their development investment.

ACV proposes a general mechanism for land clearance and speeding up detailed planning for airports. At the same time, early approval for the implementation of the socialization project. The Ministry of Transport has submitted a report to mobilize private enterprises together with ACV in investing and developing airport infrastructure.

Saigon Newport Corporation proposes capital increase to over 10 trillion VND

Mr. Nguyen Nang Toan – Chairman of Saigon Newport Corporation. Photo VGP

At the meeting, Chairman of Saigon Newport Corporation, Nguyen Nang Toan, proposed amendments to the Law on State Capital Management and Use of State Capital for Investment and Business Activities in Enterprises. The proposal seeks to specify regulations on state capital, capital of state-owned enterprises, the evaluation of the effectiveness of state capital invested in enterprises, and the capital of state-owned enterprises invested in other businesses, based on an overall perspective in line with the long-term goals of the enterprise without separating each project or investment category…

In addition, adjustments should be made regarding the distribution of profits of state-owned enterprises, allowing certain well-performing state-owned enterprises with major investment projects to retain post-tax profits after setting aside required funds to supplement capital to support investment in development projects, ensuring competitiveness and international integration.

Mr. Nguyen Nang Toan suggested that the government create conditions for the corporation to receive, invest, and operate strategically important deep-water ports vital for defense, security, and economic purposes.

Saigon Newport Corporation also recommends that the Ministry of Finance consider providing medium- and long-term funding to ensure the corporation’s development of key projects. This will enable sustainable competitiveness and the implementation of the production and business plan and the 5-year development plan for the 2021-2025 period, which has already been approved by competent authorities. Specifically, approving and allowing the corporation to increase its charter capital from 6,931 billion VND to 10,445 billion VND.

Tung Phong