Airport Corporation approved for equitisation

March 01, 2014 | 11:00

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The Airport Corporation of Vietnam has been approved by investment authorities to carry out its equitisation plan.

“The Ministry of Transport [MoT] proposal to equitise the Airport Corporation of Vietnam [ACV] is correlative with our socio-economic development orientation,” said Deputy Minister of Planning and Investment Dang Huy Dong in a document on the government’s perspective of ACV’s development plans.

The MPI also recommended the MoT consider policies to support ACV’s operations in the post-restructuring period such as a unified airport development strategy and classifying airport usage based on civil or defense needs for more effective management.

ACV has a VND14.7 trillion ($700 million) chartered capital and manages 22 airports throughout Vietnam. It is a giant business that directly promotes aviation transport and received remarkable financial support for aviation infrastructure projects.

Surprisingly, ACV was not listed among the transport sector’s state-owned enterprises slotted for equitisation by 2015.

“The ACV desperately needs tremendous amounts of capital to get its major airport infrastructure projects rolling, including the construction of the Long Thanh International Airport in southern Dong Nai province,” said Minister of Transport Dinh La Thang.

According to ACV’s latest financial statements, ACV raked in VND8.4 trillion ($400 million) in revenues in 2013, up 6 per cent on-year and VND1.3 trillion ($64.2 million) in pre-tax profits last year, down against 2012.

By By Anh Minh

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