On March 14, Prime Minister Pham Minh Chinh and Deputy Prime Minister Le Minh Khai presided over a conference to implement the monetary policy tasks for 2024, focusing on removing difficulties for production and business, promoting growth, and ensuring macroeconomic stability.
Speaking at the conference, Mr. Dang Ngoc Hoa – Chairman of the Board of Directors of Vietnam Airlines (code HVN) shared that the aviation industry has been greatly affected in the recent COVID-19 period. However, Vietnam Airlines has gradually recovered its production and business activities. Vietnam Airlines sees its role as the leading transportation sector in opening up opportunities for economic and social development, localities, tourism, investment, and bringing the Vietnamese economy to the world and vice versa.
During the past time, the Government, the Prime Minister, and the State Bank have implemented resolute solutions to support industries affected by COVID-19, such as Decree No. 31/2022/ND-CP and Circulars No. 01 and 02 of the State Bank. These measures have helped the aviation industry in general and Vietnam Airlines gradually recover its production and business activities.
In 2023, the recovery of the aviation industry has not yet reached the pre-pandemic level. However, thanks to the strong support from the Government, Vietnam Airlines has recovered about 80-90% compared to the pre-pandemic year of 2019.
Mr. Dang Ngoc Hoa, Chairman of the Board of Directors of Vietnam Airlines: Proposing support for medium and long-term interest rates. Photo VGP/Nhat Bac
Vietnam Airlines determines that service quality and absolute safety are crucial to serving customers. In 2023, 2024, and the following years, Vietnam Airlines is still aiming to expand its production and business activities, reopen old routes, and open new routes, especially transcontinental routes.
On the other hand, the aviation industry has also been greatly affected by political issues, particularly the Middle East, Russia, and Ukraine, which have caused costs to soar. However, Mr. Dang Ngoc Hoa stated that Vietnam Airlines is determined to expand its flight network, balance revenues and expenditures, or at least approach a balanced budget by 2024.
The Chairman of the Board of Directors of Vietnam Airlines also made several recommendations regarding monetary policy and general policies.
First, interest rates for loans are still high and difficult to access. Vietnam Airlines hopes to receive support in terms of interest rates, especially for medium and long-term loans.
Second, with regard to exchange rates, as the aviation industry, a 1% currency exchange rate fluctuation would result in a loss of 30 billion VND, and if it is 5%, the cost would increase to 150 billion VND per year. Vietnam Airlines hopes for a stable exchange rate at the lowest possible level.
In addition, Vietnam Airlines also suggests that the State Bank direct banks to increase credit limits for Vietnam Airlines.
Moreover, as part of the restructuring plan, Vietnam Airlines has a solution to increase its registered capital. Mr. Dang Ngoc Hoa expressed his hope that the Government and the State Bank will guide financial institutions to support Vietnam Airlines in increasing its capital.
