Business

Vietnam Airlines suffers $102 million loss in Q1

By Kieu Mai April 07, 2020 | 12:13 PM GMT+7

The national carrier is seeking $500 million government support as it is struggling amid the Covid-19 pandemic.

Most of the Vietnam Airlines's fleet has been grounded

Vietnam Airlines has been hit hard by the Covid-19 pandemic as most of its planes have been grounded. 

The national flag carrier has announced that it incurred a loss of nearly $102 million in the first three months while its consolidated revenue plummeted by $286 million over the same period last year, to reach $818 million.

The carrier claims that if the pandemic lasts unil the end of this year, it expects to suffer a loss of up to $854 million while its revenue may reach only $1.62 billion, or just a third of its business plan for this year.

The airline has suspended all international routes while maintaining only a few domestic routes. It has unilaterally delayed paying some due debts.

The carrier says it has about $150 million in cash but is running out of this reserve. As a result, it has to seek short-term loans to meet payment needs.

The short-term loan balance of the airline reached $152 million as March 20, 2020 while many of the due payments have been suspended. Its cash flow is expected to have a cumulative deficit of approximately over $640 million this year.

To ensure its solvency in 2020, the airlines says it needs a government support of $512 million that must be disbursed from April 2020.

In a recent letter sent to its staff, Vietnam Airlines president and CEO Duong Tri Thanh said the airlines has been facing particularly difficult and historic moment in its history as it has to suspend operations of nearly 100 among 106 aircraft.

“Like other airlines, we are facing vital challenges in our business activities,” Thanh wrote.

Vietnam's hotels suffer huge damage from coronavirus

Vietnam's hotels suffer huge damage from coronavirus

Property -  5 year
Due to the new ban on international travelers and rising concerns domestically, hotel occupancy in the first three weeks of March dropped dramatically to a single digit in many destinations within Vietnam.
Vietnam's hotels suffer huge damage from coronavirus

Vietnam's hotels suffer huge damage from coronavirus

Property -  5 year
Due to the new ban on international travelers and rising concerns domestically, hotel occupancy in the first three weeks of March dropped dramatically to a single digit in many destinations within Vietnam.
LG Innotek secures $200 million IFC loan following revenue drop

LG Innotek secures $200 million IFC loan following revenue drop

Business -  6 day

LG Innotek Vietnam Hai Phong secured a $200 million IFC loan as revenue slows, aiming to expand camera module production while meeting sustainability targets.

Leading with empathy in Vietnam’s billion-dollar investment flows

Leading with empathy in Vietnam’s billion-dollar investment flows

Business -  1 month

For Koen Soenens, Sales and Marketing Director at DEEP C, empathy is a compass that guides major deals, the way a leader builds a team, and the ambition to create a sustainable industrial zone that carries a Vietnamese identity.

Taseco Land’s new logo marks a new growth trajectory

Taseco Land’s new logo marks a new growth trajectory

Business -  1 month

Taseco Land has shifted its listing to HOSE and introduced a new upward-pointing arrow logo - a visual statement of its strategy to raise capital, expand its land bank, and strengthen its standing in Vietnam’s real estate sector

SAP positions Vietnam as key R&D hub with €150 million investment

SAP positions Vietnam as key R&D hub with €150 million investment

Business -  1 month

Located in the heart of Ho Chi Minh City, SAP Labs Vietnam is the second SAP Labs Network hub in Southeast Asia, following Singapore and is one of 20 countries that have SAP Labs globally.

Solar & Storage Live Vietnam returns, leading sustainability and innovation in energy sector

Solar & Storage Live Vietnam returns, leading sustainability and innovation in energy sector

Business -  2 month

Solar & Storage Live Vietnam event has been running since 2017 and the 2025 edition will be the biggest yet.

New alliance pushes ESG standards for Vietnamese businesses

New alliance pushes ESG standards for Vietnamese businesses

Business -  3 month

A new partnership between EY and the Vietnam-Singapore Board Forum (VSBF) is set to strengthen ESG capabilities for Vietnamese businesses, helping shape more sustainable business models.