30 C
Ho Chi Minh City
Tuesday, November 24, 2020

NA agrees on solutions to help Vietnam Airlines

Must read

Charity run to raise funds for charitable projects

HCMC – The British Chamber of Commerce Vietnam will organize a charity run at the British University Vietnam’s Ecopark campus in Hung Yen Province...

27 students rescued after losing way home from mountain picnic

HCMC – The local authorities have rescued 27 students who went missing during their picnic on Khau Mo Mountain in Huyen Tung Ward, Bac...

Vietnam likely to become super-aging country by 2050: deputy minister

HCMC – Vietnam entered an “aging phase” in 2011 and remains among the most rapidly aging countries in the world and, as such, might...

Three bridge projects along axis road connecting HCMC and Mekong Delta approved

HCMC – The People’s Council of the Mekong Delta province of Long An on November 18 gave its nod to the investment plans of...
HCMC – The National Assembly (NA) on November 17 passed a resolution at its 10th sitting, approving the Government’s proposals to eliminate the difficulties facing Vietnam Airlines due to the impact of Covid-19.

Accordingly, the lawmaking body asked the State Bank of Vietnam to direct credit institutions, except those under special surveillance, to offer low-interest loans to Vietnam Airlines.

In addition, Vietnam Airlines is allowed to issue shares to its existing shareholders, specifically the State, to raise its charter capital. The Government, which owns 86% of the airline, will buy the shares through the State Capital Investment Corporation.

The NA also ordered the enhancement of inspection and supervision into the adoption of these solutions to ensure they are deployed in line with the law. Vietnam Airlines must continue working on solutions to reduce loses and conduct production and business activities effectively and pay more attention to laborers’ benefits as the pandemic may not end soon.

Thus, eight months after the Covid-19 pandemic affected the aviation sector, the National Assembly has approved practical solutions to help the national flag carrier.

Vietnam Airlines and the Commission for the Management of State Capital at Enterprises have repeatedly been proposing that the Government and the NA allocate VND4 trillion at no interest for three years for the airline through credit institutions.

From Vietnam Airlines’ establishment until 2019, the firm contributed nearly VND45 trillion to the State budget. However, the air carrier incurred losses of VND10.75 trillion in the January-September period due to Covid-19. The figure is forecast to surge to some VND15 trillion this year.

In addition, the firm may face a cash deficit of VND15-16 trillion.

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Latest articles

Charity run to raise funds for charitable projects

HCMC – The British Chamber of Commerce Vietnam will organize a charity run at the British University Vietnam’s Ecopark campus in Hung Yen Province...

27 students rescued after losing way home from mountain picnic

HCMC – The local authorities have rescued 27 students who went missing during their picnic on Khau Mo Mountain in Huyen Tung Ward, Bac...

Vietnam likely to become super-aging country by 2050: deputy minister

HCMC – Vietnam entered an “aging phase” in 2011 and remains among the most rapidly aging countries in the world and, as such, might...

Three bridge projects along axis road connecting HCMC and Mekong Delta approved

HCMC – The People’s Council of the Mekong Delta province of Long An on November 18 gave its nod to the investment plans of...

Work begins on three components of North-South expressway project

HCMC – On November 19, the Ministry of Transport began work on three components worth over VND4 trillion of the Mai Son-National Highway 45...