VN enjoys brilliant aviation market
11:49 | 22/01/2016

VGP – Since late 2015, Viet Nam’s aviation market has become brilliant in the eyes of foreign investors thanks to its outstanding potentials.

Illustration photo

Ten days ago, All Nippon Airways (ANA), Japan's leading airline, became a strategic shareholder of the national flag carrier, Vietnam Airlines (VNA).

Accordingly, ANA will purchase 8.8% of the national flag carrier Vietnam Airlines's stake for VND 2.43 trillion (US$108 million).

To this effect, the two airlines signed a Memorandum of Understanding (MoU) on strategic cooperation on January 12.

The two carriers will code-share on certain routes between Viet Nam and Japan. The strategic relations will help them take advantage of each other’s strength to enlarge their networks and expand international markets by cross selling tickets on some of each others’ flights.

The signing proved that Viet Nam could be an attractive market to ANA due to the investment cooperation between two countries, the Financial Times (the UK) was quoted as saying.  

According to the Japan External Trade Organization (JETRO), direct investment by Japanese firms into Viet Nam more than trebled to US$9 billion between 2011 and 2014, compared with the previous four years. Viet Nam was regarded as a charming aviation market for ANA.

The Aviation Airport Corporation of Viet Nam (ACV) on December 10 off-loaded the entire 77.8 million shares at an average price of VND14,300 (US$63 cents) each, 3.47% of the company, in its initial public offering (IPO) on the HCM Stock Exchange. 

Around 306 bidders asked to buy a cumulative 114 million shares, far outstripping the IPO package size. After the auction, ACV recorded gains of VND1.116 trillion (US$49.57 million).

The Ministry of Transport reported that a large number of investors were interested in becoming strategic shareholders of ACV including the Bank for Investment and Development of Viet Nam (BIDV),  Aeroports de Paris – ADP (France) and Changi Airport International (Singapore)./.

By Khanh Phuong

 

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