Vietnam Airlines to Raise Capital and Invest in Narrow-body Aircraft
Vietnam Airlines plans to invest in a new fleet of narrow-body aircraft.
Vietnam Airlines (Vietnam Airlines, HOSE: HVN) has announced an extraordinary general meeting scheduled for 2 pm on May 15 in Hanoi. The meeting aims to approve a plan to issue shares to increase charter capital and invest in a fleet of narrow-body aircraft.
The project involves the purchase of 50 narrow-body aircraft, either Airbus A320NEO or Boeing B737 MAX, along with 10 spare engines, with an estimated total value of VND 92,800 billion (approximately USD 3.7 billion). As per regulations, such a significant investment decision falls under the purview of the general meeting of shareholders.
The Ministry of Finance has requested that Vietnam Airlines report and submit the project to the Prime Minister for consideration and approval. The airline will be held accountable for the entire process, from preparation to approval and implementation.
Vietnam Airlines’ financial report for the first quarter of 2025
Vietnam Airlines has been planning to expand its narrow-body fleet for several years to meet future transport demands and replace older A321 Neo aircraft to enhance operational efficiency. However, the process faced obstacles due to the pandemic and existing regulations.
The proposed project aims to address the airline’s narrow-body fleet requirements for the period 2025 – 2035, ensuring the carrier’s development plan through 2035 and its vision for 2040. If implemented as planned, Vietnam Airlines can meet the feasibility requirements for capital mobilization and aircraft delivery from manufacturers (Boeing offers B737Max deliveries starting in 2028, while Airbus can deliver from 2030).
With this investment, Vietnam Airlines’ total fleet size could increase to 137 aircraft by 2030 and 169 aircraft by 2035, serving approximately 47.9 million passengers.
Vietcombank will arrange financing for the transaction, including prepayments and long-term loans in the 2026-2032 period. The bank will also work closely with Vietnam Airlines to develop an optimal financial structure to ensure the long-term efficiency of this large-scale investment project.
According to the consolidated financial report for the first quarter of 2025, Vietnam Airlines’ revenue reached nearly VND 31,107 billion, with pre-tax profits of nearly VND 3,625 billion. This profit represents a 20% decrease compared to the same period last year but is equivalent to the combined profits of the previous three quarters. The airline attributed this performance to the rebound in international passenger demand, lower fuel prices than in the previous year, and agile and efficient management efforts.
Who Else, Besides Billionaire Pham Nhat Vuong, Has Invested in Vinspeed, the Company Behind the Proposed $61 Billion High-Speed Rail Project?
With a registered capital of 6 trillion VND, the company boasts an impressive financial foundation.
Unveiling the State’s Savvy Investments: Minister of Finance Emphasizes Smart State Participation in Enterprises
The role of the state will evolve; instead of managing state-owned enterprises, the state will only manage its capital contributions to these businesses. These contributions are considered assets of the enterprise.
The Japanese Company Expanding its Horizons: A $132 Million Investment in Hung Yen to Quadruple Production Capacity
“Nitto Vietnam Limited (a wholly-owned Japanese company) received an investment certificate for a $132 million project in Hung Yen province in September 2023. In a recent development, the company has been granted approval to increase its investment capital to $160 million, marking a substantial increment of $28 million.”
“Billionaire Pham Nhat Vuong’s VINSPEED Registers to Invest in the High-Speed North-South Railway Project”
The project, with its completion envisioned for the year 2030, lays the foundation for a thriving railway industry and serves as a catalyst for new growth and development in the region.
“US-Vietnam Trade Agreement: A Mutually Beneficial Partnership”
On May 13, Prime Minister Pham Minh Chinh met with representatives of the American business community investing and operating in Vietnam. The purpose of this meeting was to listen to and address any challenges they may face, as well as to discuss proposals to enhance Vietnam-US investment and business cooperation.
