Vietnam Airlines’ Road to Recovery and Sustainable Growth
In 2024, Vietnam’s national carrier, Vietnam Airlines (stock code HVN), made a remarkable turnaround, recording a consolidated pre-tax profit of 7,958 billion VND. Financial metrics showed significant improvement, with domestic and international flight operations almost back to pre-pandemic levels, setting the stage for the airline’s synchronized strategies for the next growth phase.
To ensure sustainable development, Vietnam Airlines implemented a range of solutions, with two critical pillars: capital restructuring and fleet optimization to streamline business operations.
In 2024, Vietnam Airlines (stock code HVN) turned a corner, recording a consolidated pre-tax profit of 7,958 billion VND.
Synchronized Strategies for Sustainable Growth
Vietnam Airlines is preparing for an extraordinary shareholders’ meeting to approve strategic plans for the period from 2026 to 2030, which is envisioned as a phase of comprehensive recovery and enhanced stability.
Beyond positive financial results, the airline has significantly improved its financial structure by implementing cash flow enhancement measures, divesting from certain subsidiaries, and restructuring its aircraft assets. Notably, a 22-trillion-VND financial package, approved by the National Assembly in late 2024, will be executed in two phases through rights offerings to existing shareholders to increase charter capital.
The first phase, valued at 9 trillion VND, is expected to be completed in 2025, with the State’s pre-emptive rights transferred to the State Capital Investment Corporation (SCIC). The second phase, with a maximum value of 13 trillion VND, is planned for 2026.
The additional capital from these offerings will enable Vietnam Airlines to clear its financial obligations, restore financial strength, and facilitate key investment projects, such as expanding operational infrastructure at the Long Thanh International Airport and investing in new narrow-body aircraft.
As per the plan, if the timeline is adhered to and positive financial performance continues, the company’s owner’s equity is projected to turn positive as soon as 2025. The overall solvency ratio is expected to reach 1.05, and the return on sales (ROS) is estimated at 1.4%.
The combination of internal efforts and timely support from the government is considered pivotal to the airline’s sustainable recovery goals.
Intense Competition in Aircraft Procurement
According to forecasts by the International Air Transport Association (IATA), the Asia-Pacific region, including Vietnam, remains one of the fastest-growing aviation markets globally. Vietnam’s aviation market is projected to expand at an average rate of 5-6% annually, reaching approximately 150 million passengers by 2035, nearly double the number in 2019.
To capitalize on this trend, Vietnam Airlines is expediting a project to invest in 50 narrow-body aircraft. This project was initially studied and reported on from 2018 to 2020 but was later adjusted due to the pandemic. In April 2025, the government approved the investment without providing state guarantees, leaving financial responsibility solely with the airline.
Vietnam Airlines is currently in discussions with Airbus and Boeing, considering the A320/A321 NEO and B737 MAX models. If negotiations proceed smoothly, the first deliveries could take place by late 2028.
The total investment for this program is estimated at $3.7 billion, with a capital structure combining equity and commercial or export credit loans. This plan will expand the airline’s fleet to approximately 137 aircraft by 2030, bolstering its long-term competitiveness.
Additionally, the airline is broadening its financial partnerships with prominent institutions. Vietnam Airlines has signed a memorandum of understanding with Vietcombank for long-term capital arrangement for the aircraft investment project. Furthermore, a memorandum of understanding with Citi, a leading US financial institution, has also been concluded, committing a minimum of $560 million in financing for the airline’s strategic projects.
Vietnam Airlines embarks on a new growth trajectory with a clear direction and a cautious yet determined approach.
Embarking on a New Growth Trajectory
Vietnam Airlines is entering a new phase of growth with a clear direction and a cautious yet determined approach. The airline aims to eliminate accumulated losses by 2032 and achieve self-reliant development without relying on external support by 2027.
The strategy of “putting the corn in the right basket” reflects a focus on core competencies rather than a scattered resource allocation. Amid the dynamic restructuring of the aviation market, proactively strengthening finances, investing in the fleet, and forging partnerships with international financial institutions are key to Vietnam Airlines’ maintenance of its domestic leadership and enhancement of its global competitiveness.
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Recently, Raise Partners and Vietnam Innovators Digest joined forces to present the Vietnam ESG Investment Conference 2025 in Ho Chi Minh City.
“Vietnam Airlines’ Shareholders Meeting: Capital Increase of $9 Billion Approved, $3.6 Billion Investment for 50 New Aircraft, and Ongoing Negotiations for Timely Delivery”
“The global demand for commercial aircraft is surging. Placing an order for Boeing’s narrow-body planes now would result in a delivery date as late as 2032,” revealed Mr. Dang Ngoc Hoa, Chairman of the Board of Directors.
The Power Within: Unlocking the Engine of Economic Growth for the Coming Decade
“Vietnam’s economy has traditionally been driven by its robust export sector. However, amidst the looming threat of US tariffs, KIS Securities predicts that domestic consumption and public investment will emerge as the primary growth drivers going forward.”
Vietnam Airlines Proposes a Capital Increase and a Narrow-Body Aircraft Project at an Extraordinary General Meeting
The meeting was convened to approve the proposal to issue shares and increase the charter capital, along with the investment in narrow-body aircraft.
Important Information for Vietnam Airlines Passengers Traveling Through Tan Son Nhat Airport
It is imperative that passengers diligently check their airline tickets, respective airline websites, or official mobile applications for accurate departure gate information prior to heading to the airport.
