Vingroup halts aviation arm Vinpearl Air

January 14, 2020 | 17:30
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Vietnamese conglomerate Vingroup officially called off its ambitious plans in aviation with Vinpearl Air on January 14.

Vietnam's No.1 conglomerate has just submitted to the Ministry of Transport a request to strike out the business registration of Vinpearl Air in a move to reshape its porfolio to focus on its core values.

Last year, Vinpearl Air, the aviation arm of Vingroup, was expected to start domestic and international flights from July 2020 with a fleet of six aircraft, according to Director General of the Civil Aviation Authority of Vietnam, Dinh Viet Thang.

Previously, Vingroup inked a co-operation agreement with CAE Oxford Aviation Academy, the leading aeronautical training organisation, to set up VinAviation High-Tech Human Resources Training School and Vinpearl Air Flight Training Center in Vietnam. Qualified candidates will receive basic training in one of the world’s leading aviation training centres in the US and Australia, as well as at VinAviation School in 26 months.

vingroup halts aviation arm vinpearl air
Vietnamese conglomerate Vingroup officially called off its ambitious plans in the aviation industry with Vinpearl Air

The latest movement, on the other hand, would not affect the VinAviation training centre. The group is ramping up efforts to shift its core value of the digital technology-driven business as part of its long-term strategic plan. Moreover, the giant reaffirmed that it will continue its vigorous attempts to upgrade ageing facilities and accommodate the rising demand for airport infrastructure development in Vietnam.

“The Vietnamese aviation sector boasts immense potential since the demand for air travel will likely grow further,” said Nguyen Viet Quang, deputy chairman and CEO of Vingroup. “Yet the competition is getting fiercer as big players are setting stronger footholds in the market. We understand our core competencies and strive to specialise on our technology and industry strengths, thus, we halt our aviation arm to avoid redundancy in human and financial resources.”

vingroup halts aviation arm vinpearl air
Vingroup closed its retail business after the M&A deal with Masan Group

As of late December 2019, Vingroup exit from its retail business after merging e-commerce site Adayroi with e-payment unit VinID. The move came barely two weeks after the merger of its supermarket chains and agribusiness with Masan Group. The shares of Masan, as one of the blue-chips, were among the hardest hit after the news.

By Luu Huong

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