ACV expects 2020 profit down by VND6 trillion due to COVID-19

Monday, 2020-02-24 17:29:52
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The COVID-19 epidemic and its impacts could result in a total reduction of 35 million passengers in the entire port network this year. (Photo: VNA)
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NDO/VNA – The Airports Corporation of Vietnam (ACV) expects profit this year will reach just VND1.7 trillion (US$73.4 million), a decrease of more than VND6 trillion compared to the year’s forecast, due to the effect of the acute respiratory disease caused by a new coronavirus (COVID-19).

The epidemic and its impacts could result in a total reduction of 35 million passengers in the entire port network this year, said ACV.

Last year, the corporation achieved a net revenue of VND18.3 trillion and an after-tax profit of VND8.3 trillion, record results thanks to the growth of both passenger volume and air cargo.

During a recent meeting with the Prime Minister’s Working Group, ACV proposed Government and the Prime Minister consider the creation of favourable mechanisms and policies to accelerate the progress of investment projects, especially the upgrading projects of flight deck systems at Tan Son Nhat and Noi Bai international airports to meet the operational needs when the market recovers.

The legal documents guiding the implementation of the Vietnam Civil Aviation Law currently do not prescribe nor clearly define the role of port enterprises in terms of the rights to invest, develop, renovate and expand the airports that are assigned to those firms for management and exploitation.

This affected ACV’s initiative of investing, upgrading and improving ACV's airport infrastructure. Meanwhile, ACV had already accumulated available funds to immediately implement projects, the company said.

As of December 31, 2019, the company's short-term deposits amounted to nearly VND31.2 trillion, accounting for more than half of its total assets.

To solve this problem, in the draft revision of Decree 102/2015 on management and operation of airports, the Ministry of Transport has added provisions specifying the authority of port enterprises in investing, renovating and upgrading ports.