Mr Dang Ngoc Hoa, Chairman of the Board of Directors of Vietnam Airlines: Requests support for medium and long-term loan interest rates. Photo VGP/Nhat Bac
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This event was chaired by Prime Minister Pham Minh Chinh and Deputy Prime Minister Le Minh Khai, with the participation of many leaders from various industries. The purpose is to remove difficulties for production and business, promote growth, and stabilize the macroeconomy.
At the event, Mr. Dang Ngoc Hoa shared the challenges and difficulties that the aviation industry has faced since the COVID-19 period.
In addition to the impact of the pandemic, Mr. Hoa stated that the aviation industry has been greatly affected by political issues, especially the Middle East issue, as well as Russia and Ukraine, which have caused costs to increase significantly.
Exchange rate is also a worrisome issue for the aviation industry. Mr. Hoa emphasized that when the exchange rate changes by 1%, Vietnam Airlines loses 300 billion VND. “If it changes by 5%, our costs will increase by 1,500 billion VND per year,” he said.
In that challenging context, the national airline has incurred losses for 16 consecutive quarters, with accumulated losses of 41,000 billion VND.
| Quarterly business results of Vietnam Airlines |
Recovered 80-90% compared to pre-pandemic
However, Mr. Hoa said that the business landscape of Vietnam Airlines has gradually recovered thanks to resolute support from the Government and the State Bank of Vietnam, such as Decree 31/2022/ND-CP, Circulars No. 01 and 02 of the State Bank of Vietnam, and the implementation of new Visa policies.
“The actions from the Government and the State Bank of Vietnam have helped the aviation industry in general and Vietnam Airlines to gradually restore their production and business activities,” he said. “With the new visa policy, Vietnam Airlines has recovered about 80-90% compared to the pre-pandemic year 2019.”
In the current difficult situation, the leadership of Vietnam Airlines hopes to be supported in terms of loan interest rates, especially medium and long-term loan interest rates. In addition, Vietnam Airlines also recommends that the State Bank of Vietnam direct banks to increase credit limits for the national airline.
Regarding the restructuring plan, Vietnam Airlines hopes that the Government and the State Bank of Vietnam will direct financial institutions to support Vietnam Airlines in increasing its capital.
The leadership of Vietnam Airlines also hopes that the exchange rate will be maintained stable, with fluctuations “at the lowest possible level”.
