Airports Corporation of Vietnam (ACV) has announced an
investment plan for five years (2016-2020) with capital of VND31.6 trillion
Investment to primarily go to
upgrading infrastructure at major airports.
It will focus investment in airports that have high growth
potential for tourism and play an important role in national security.
Infrastructure will be upgraded at airports such as Tan Son Nhat International
Airport in Ho Chi Minh City, Noi Bai International Airport in Hanoi, and Da Nang
ACV also plans to expand aircraft aprons and
hangars at Tan Son Nhat, Da Nang, Noi Bai, Lien Khuong, Buon Me Thuot, Can Tho,
and Con Dao airports.
It submitted the plan to the Ministry of
Transport and is waiting for approval from the government. Last year it
proposed an increase to aviation service charges this year, which would mainly
affect passengers of domestic flights leaving or arriving at Tan Son Nhat, Noi
Bai, Cam Ranh, Phu Quoc, Vinh and Phu Bai airports. The plan, however, has not
yet been approved.
The Vietnamese Government has recently
granted permission to Aeroports de Paris (ADP) to buy 20 per cent of ACV and
become its strategic partner. The contract is expected to be finalized shortly.
Prime Minister Nguyen Xuan Phuc met Mr. Augustin
de Romanet de Beaune, Chairman and CEO of ADP, last week and pledged to create
favorable conditions for the strategic partnership.
ACV needs to raise capital to improve Vietnam’s
airport infrastructure. It is expected to invest $16 billion in building Long
Thanh International Airport in Dong Nai province over the next decade to ease
overloading at Tan Son Nhat. ADP has also expressed interest in investing in
ACV’s chartered capital stands at VND21.7 trillion
($951 million). It expects to list 2.1 billion shares on the Ho Chi Minh City
Stock Exchange (HoSE) later this year.
In November last year it entered the Unlisted
Public Company (UPCoM) market under the code ACV, with a total of 2.18 billion
shares and a registered stock value of more than VND21.7 trillion ($976.5
ACV is a joint stock company operating under the
form of the parent - subsidiary company, with the State holding a majority
stake. In October 2015, the government approved its equitization plan, with
State ownership to fall to 75 per cent. In March this year it held its first
It is the largest enterprise by charter capital on
UPCoM and manages 22 airports throughout the country, of which seven are
international and 15 domestic, with 21 being directly managed by the
corporation, and it also has a range of joint ventures with other companies.