The negative business results stemming from the impact of COVID-19 may hamper Airports Corporation of Vietnam (ACV) in preparing capital to begin the development of Terminal 3 at Tan Son Nhat International Airport in the third quarter of next year.
|Bleak business result of ACV may delay construction of Terminal 3 on time |
The construction of the third terminal of Tan Son Nhat International Airport is expected to be kicked off in the third quarter of next year and finished within 37 months, as per Airports Corporation of Vietnam's (ACV) commitment.
The Ministry of Transport, ACV, and relevant parties are rushing to prepare the ground-breaking ceremony of the project in the third quarter of 2021. Accordingly, ACV is establishing a managing board to build the feasibility report, technical design, and select contractors. In addition, it is also co-operating with Ho Chi Minh City People’s Committee to complete procedures to receive land from the Ministry of Defence.
In May, the prime minister assigned ACV as the investor of the third terminal with the total investment capital of VND10.99 trillion ($477.83 million). The investment capital will come from the legal capital of ACV. With the designed annual capacity of 20 million passengers, once completed, Tan Son Nhat International Airport will handle 50 million passengers.
The expansion should help alleviate stress on the overburdened airport. Meanwhile, work creeps along at Long Thanh International Airport, which will shoulder part of Ho Chi Minh City's air travel demand when completed.
Tan Son Nhat is the busiest airport in Vietnam, with Terminal 1 and Terminal 2 handling domestic and international flights, respectively. The two terminals handled over 40 million passengers last year, 1.6 times higher than their designed capacity of 28 million passengers per year.
During the following two years, ACV plans to prioritise investment in the construction of the second terminal at Phu Bai International Airport in the central province of Thua Thien-Hue.
The corporation forecasts a pre-tax profit plunge of 80 per cent this year to VND2 trillion ($86.96 million) due to coronavirus impacts.
The state-owned company, which operates 21 airports, also anticipates its revenue to fall 45 per cent to VND11.3 trillion ($491.3 million), according to its document submitted to shareholders.