Illustrative photo (Source: nld.com.vn)Hanoi (VNS/VNA) - The Airports Corporation of Vietnam (ACV) hastargeted earning 19.1 trillion VND (820 million USD) in revenue and 8.2trillion VND (355 million USD) in pre-tax profit in 2019, representingyear-on-year increases of 7 percent and 9 percent.
ACV holds a positive view of the growth trajectory of the Vietnamese airtransport market thanks to the participation of new domestic airlines and theaddition of international flights to Phu Quoc, Phu Yen and Phu Cat, said ACVGeneral Director Vu The Phiet at the company’s 2019 Annual General Meeting ofShareholders in HCM City on June 22.
However, the company is expected to encounter some difficulties related tocompetition from the private sector, policies on flight zones, investmentrights and delayed land procedures, along with increasing electricity and fuelcosts and the unstable global political situation.
Therefore, AVC expects revenue growth for both aviation and non-aviation servicesto be lower than last year, Phiet said. Aviation service revenue will continueto rise but the increase will be lower than in 2018 due to lower internationalrevenues from Cam Ranh Airport.
Non-aviation revenue is also expected to report lower growth than last year. In2018, many new facilities were completed and put into operation, but this year,most new projects are still preparing for investment. The company aims to raisenon-aviation service revenue to 40 percent of its total revenue in the next fewyears, Phiet said.
In 2018, profit increased sharply thanks to the policy of increasing serviceprices under Decision 2345 of the Ministry of Transport. The company recordedtotal revenue and post-tax profit of 17.8 trillion VND and 6 trillion VND, up19 percent and 44 percent respectively against 2017.
Phiet said the company has submitted a feasibility study for the first phase ofconstruction for Long Thanh International Airport. It is awaiting review beforesending the study to the National Assembly for approval in October, 2019.
Lai Xuan Thanh, Chairman of ACV, said that the plan to list on the HCM StockExchange depended on the company’s equitisation process. ACV needs to assessthe value of its assets and State assets before it can move forward withequitisation.
In 2019, ACV will continue to invest in infrastructure to meet the needs ofairlines with investment capital of more than 7.3 trillion VND, including tofund the construction of terminal T3 at Tan Son Nhat Airport in HCM City, theproject to expand terminal T2 at Noi Bai Airport and the terminal T2 project atCat Bi Airport in Hai Phong city.
Phiet said the feasibility study for the new terminal was nearly finished. Theterminal is expected to have an annual capacity of 20 million passengers, onestation and one high rise garage. It is expected to cost 11.5 trillion VND intotal.
Phiet said the company is still struggling to secure enough funding to completethe project. It has asked to Government to allow it to construct the terminaland serve as its investor. — VNS/VNA
VNA
