Home / News / Viet Nam
Vietnam Airlines hardest hit by Covid-19 among major state firms
Ngoc Thuy 17:47, 2020/03/09
Most major state-firms are facing a gloomy outlook as Covid-19 is wreaking havoc on the economy.

Flag carrier Vietnam Airlines is forecast to suffer a decline of VND12.5 trillion (US$542.51 million) in revenue and a loss of VND4.3 trillion (US$186.62 million) in profit in 2020, due to a plunge in the number of air passengers on fears of the Covid-19 epidemic, according to the Commission for Management of State Capital at Enterprises (CMSC).

 Illustrative photo. 

This means the airline would be unable to fulfil the business plan set by CMSC, dubbed as “super committee”, for this year, CafeF reported, citing the committee’s brief report on the impacts of Covid-19 on the operations of 19 major state-owned enterprises (SOEs) under its administration.

Meanwhile, Airports Corporation of Vietnam (ACV) expected the number of passengers to decrease by over 12 million, a 10% lower than the target set for 2020.

ACV’s revenue in 2020 is estimated to reach 87% of the estimate or a decline of VND2.8 trillion (US$121.41 million), make a pre-tax profit meeting 76% of the estimate, down VND2.6 trillion (US$112.74 million).

Vietnam Railway (VNR) stopped operation of a number of railway routes due  to the lack of passengers. The suspension of Vietnam – Nanning route on February 4 has significantly impacted VNR’s business performance.

VNR’s revenue in 2020 is estimated to decline by VND54.8 billion (US$2.37 million), down 13.3% year-on-year, while revenue from cargo transportation is forecast to be shaved by VND9.9 billion (US$429,377)..

According to Vietnam National Shipping Lines (Vinalines), most shipping fleets are struggling to maintain daily operation, mainly due to the disruption of logistics services for Chinese customers via maritime transportation.

In case the epidemic persists until the end of March or the second quarter, Vinalines expected its consolidated revenue to decline VND1.62 trillion (US$70.23 million) and its profit to fall short of VND534 billion (US$23.15 million) compared to the respective targets.

Petrolimex, Vietnam’s largest petroleum distributor, reported domestic sales of petroleum products in January down 4% month-on-month, while sales in February fell 20%.


Launched nearly two years ago, the CSCM is tasked with managing state capital at 19 leading state-run groups and corporations with combined capital of VND1,000 trillion (US$43.02 billion), or two-third of total state capital, and assets of over VND2,300 trillion (US$98.96 billion).

RELATED NEWS
TAG: Vietnam covid-19 coronavirus nCoV Vietnam Airlines Vinalines Petrolimex VNR ACV
Other news
16:52, 2021/52/22
State President pays tribute to Most Venerable Thich Pho Tue
The 105-year-old most venerable dedicated his entire life to Buddhism since he joined a Buddhist temple at the age of 6.
05:29, 2021/29/22
Vietnam recognizes vaccine passports from 72 countries
As the vaccination rate increased and the pandemic under control, many parts of Vietnam are open to domestic visitors.
18:20, 2021/20/21
USAID, partners launch US$2.9 million project to protect Mekong Delta's habitat
The project was announced during U.S. Vice President Kamala Harris’s visit to Vietnam in August and launched today.
17:50, 2021/50/21
UN Security Council holds emergency meeting over North Korea
Vietnam emphasized the need to resume negotiations as soon as possible.
16:21, 2021/21/20
Female foreign diplomats expected to promote Vietnam's integration
Vietnam calls on the female diplomats to focus more on cooperation in socio-economic recovery in the post-pandemic period.
22:12, 2021/12/19
Vietnam chairs UN meeting on sea-level rise
The UN members said this is an important topic concerning global efforts and actions, requiring a comprehensive approach.