The Birth of a Mega-Project: SGN Invests 250 Billion VND in a New Company for the Long Thanh Airport Development

SGN Joint Stock Ground Services Company (SGN: HOSE) has just announced Resolution No. 272/NQ-HQT of the Board of Directors regarding capital contribution to establish a subsidiary.

Accordingly, the newly established company is named Saigon – Long Thanh Ground Services Limited Company, with a charter capital of VND 333 billion. Of this, SGN’s capital contribution value is nearly VND 250 billion, equivalent to 75% of the new company’s charter capital.

SGN will appoint two people to manage the above-mentioned capital contribution and introduce them to the Members’ Council of Saigon – Long Thanh Ground Services.

Mr. Nguyen Cao Cuong, Chairman of SGN’s Board of Directors, will be authorized to represent the capital contribution of VND 166.5 billion, equivalent to 50% of the new company’s charter capital and hold the position of Chairman of the Members’ Council; Mr. Hua Kien Trung, SGN’s Vice President was authorized to represent the capital contribution of VND 83.25 billion, equivalent to 25% of the charter capital.

In addition, SGN also nominated Mr. Nguyen Thai Hoa as the legal representative and General Director of Saigon – Long Thanh Ground Services; Mr. Phung Danh Nguyen – Chief Accountant of SGN and Ms. Nguyen Thi Thuy Diem – Team Leader of Consolidated Accounting as members of the Supervisory Board.

Previously, at the 1st 2025 Extraordinary General Meeting of Shareholders held on March 6, 2025, SGN approved the policy of establishing a new legal entity to organize the implementation of investment, operation, and exploitation of the Project for construction and business of aircraft maintenance services, equipment, and commercial ground technical services at Long Thanh International Airport.

In which, SGN holds 75% of the charter capital and Hanoi Ground Services Joint Stock Company (HGS) holds 25% of the charter capital.

In early December 2024, the consortium of SGN and HGS was selected by the Ministry of Transport as the investor of the Project for construction and business of aircraft maintenance services, equipment, and commercial ground technical services at Long Thanh International Airport.

In this consortium, SGN plays a leading role with a 75% capital contribution, and the remaining belongs to its partner, HGS. Notably, both enterprises committed to using entirely owner’s equity without external borrowing.

The Ministry of Transport assigned the Vietnam Aviation Authority, as the inviting bidder, to sign and manage the contract based on the results approved by the Ministry to organize and implement the next steps.

Investing in the construction and business of aircraft maintenance services, equipment, and commercial ground technical services at Long Thanh International Airport includes Package 1 and Package 2.

Each project is implemented on an area of over 7,000 m2 with an initial investment value of about VND 781 billion. The implementation progress is about 18 months, and the project duration is about 24 years and 8 months.

Currently, SGN and HGS are both owned by Vietnam Airports Corporation – Joint Stock Company (ACV: UPCoM) with ownership ratios of 48.03% and 20%, respectively.