Saigon Ground Services Joint Stock Company (SAGS, code SGN) has just announced the 2025 Annual General Meeting materials, approving the consolidated revenue plan of VND 1,392 billion, down 11%; and consolidated after-tax profit plan of VND 159 billion, down 41% over the performance in 2024.
The backward-looking plan is set against the backdrop of SGN’s upcoming termination of its contract with major client, Vietjet Air. Specifically, from the second quarter of 2025, Vietjet Air will self-handle ground services, prompting SAGS to explore solutions to find new customers and develop new services to increase revenue and cut costs.
According to SAGS’ 2024 consolidated financial statements, Vietjet contributed approximately VND 600 billion to SGN’s total revenue of VND 1,518 billion in 2024, accounting for 39%. The year before, Vietjet also contributed VND 536 billion.
Additionally, the SGN management expects 2025 to be another year of challenges and significant fluctuations, both domestically and internationally. Volatile oil and jet fuel prices drive up operating costs, affecting air ticket prices and demand for air travel. Meanwhile, global economic and political tensions continue to disrupt supply chains, negatively impacting the aviation transportation market.
Despite these challenges, SGN believes there are many positive factors supporting their 2025 operations. The Vietnamese economy is expected to maintain a GDP growth rate of over 8%, boosting consumption and demand for travel, especially air travel. The government is also heavily investing in airport infrastructure, notably the Long Thanh International Airport project, along with policies to promote tourism, extend e-visas, and reduce taxes and fees. These are considered significant supports for the company’s operations.
To address the challenges and seize opportunities, SGN has outlined key operational directions: (i) focus on enhancing service quality, (ii) invest in internal resources, (iii) actively seek new customers, and (iv) develop value-added services to compensate for revenue loss.
SGN also prioritizes activities to expand production and business at Long Thanh International Airport, while strictly controlling costs and applying information technology in management and operations. Moreover, debt collection will be intensified this year.
The Sky’s the Limit: Vietnam Airlines and the SAGS-HGS Consortium Take Off on a Major Project at Long Thanh Airport
On May 25, 2025, a significant milestone was reached in the development of the Long Thanh International Airport with the simultaneous commencement of two large-scale ground-handling projects.
Vietnam Airlines Launches First Project at Vietnam’s Ultra-Modern $16 Billion Dollar Airport
This VIAGS project is a pioneering initiative within the scope of Vietnam Airlines’ undertakings at Long Thanh Airport. As the first of its kind, it sets the tone for future endeavors and underscores our commitment to excellence at this prestigious location.
The Golden Conundrum: Why Does Importing Gold Spark Fears of Currency Drain, While Cigar and Liquor Imports Go Unscrutinized?
“Gold, according to Dr. Le Xuan Nghia, is an extremely important reserve. Vietnam only needs to import around $3-4 billion worth of gold annually, yet many worry about ‘foreign currency outflow’. In contrast, the import of foreign liquor, cigars, and cigarettes amounts to $8 billion yearly, an issue that rarely sparks concern. This irony is quite absurd.”
Vietjet Orders 20 Wide-body Aircraft from Airbus
Vietjet has bolstered its wide-body aircraft fleet with a new order for A330neo planes, bringing the total number of these state-of-the-art jets to 40. This significant investment in the A330neo showcases the airline’s commitment to offering passengers a superior flying experience. In addition to these wide-body aircraft, Vietjet also has 96 A320neo narrow-body jets on order, demonstrating their confidence in the Airbus family of aircraft to meet their operational needs.
The $500 Million Inter-Port Traffic Contract for Long Thanh Airport is Delayed.
The $4.8 billion Intra-Airport Transportation Package project at Long Thanh Airport is facing delays due to a shortage of machinery, labor, and challenging construction conditions. With a massive scope and tight deadlines, this project demands exceptional efficiency and expertise to get back on track.
