ACV pours $263m into expanding major airports

Wednesday, Jul 19, 2017 09:00

Passengers stand in line before boarding at Noi Bai International Airport, Ha Noi. — VNS Photo Thai Ha

The Airports Corporation of Vietnam (ACV) plans to undertake projects on upgrading infrastructure of major airports with total investment capital of more than VND6 trillion (US$263.38 million).

The goal is to ensure security and service quality and meet the aviation sector’s growth demand.

Of the fund, some VND2 trillion will be spent on the second phase of expanding the international terminal at the Tan Son Nhat International Airport and airfield. Meanwhile, some VND1.2 trillion will be invested on upgrading terminal T1 and the airfield of the Noi Bai International Airport.

As for the Da Nang International Airport, ACV will build a VIP guest room and upgrade the airfield worth VND150 billion, which is in front of the airport’s international terminal, as preparation for the 2017 APEC (Asia-Pacific Economic Cooperation) Summit, which will be officially held in central Da Nang City in November.

ACV will also spend another VND2 trillion on expanding the terminals and the airfield of the Phu Quoc International Airport in the southern province of Kien Giang, which is expected to receive five million passengers per year.

ACV expects to serve 91 million passengers this year, marking a year-on-year increase of 13 per cent, of which 27 million will be international guests and the remainder of 64 million will be domestic passengers, up 14 per cent and 12 per cent, respectively.

The corporation, which is listed as ACV on the Unlisted Public Company Market (UPCoM), has set a target of earning more than VND13 trillion this year, making a pre-tax profit of VND3.67 trillion. It is estimated to pay dividend at the rate of 9 per cent.

A report from ACV showed that it earned nearly VND7.3 trillion in the first half of this year, which was 55 per cent of the yearly target, making the after-tax profit of nearly VND2.3 trillion, or 68 per cent of the yearly target.

At the annual shareholders’ meeting held last month, the shareholders voted Lai Xuan Thanh, head of the Civil Aviation Authority of Viet Nam, to be the corporation’s chairman, replacing Nguyen Nguyen Hung who retired.

Thanh assumes the new role in the 2016-20 period as representative of State-owned capital at the corporation.

The corporation is operating under parent company – subsidiaries model, managing 22 airports nationwide, of which seven are international airports including Phu Bai, Cam Ranh, Phu Quoc and Can Tho, in addition to 15 domestic airports including Buon Ma Thuot, Lien Khuong, Ca Mau and Dien Bien. — VNS

Comments (0)