return icon Vietnamnet.vn

Bamboo Airways to sell shares to foreign investors

Economists are concerned that Bamboo Airways' sale of shares to foreigners could affect national security.

At a roadshow on stock investment opportunities last week, Bamboo Airways announced that it is conducting negotiations to sell shares to foreign strategic investors. The share price is believed to be ‘no lower than VND160,000’.

 

{keywords}



With this price level, the capitalization value of the airline would far exceed the initially estimated value of $1 billion.

Prior to that, Nguyen Khac Hai, deputy CEO of Bamboo Airways, said the carrier was planning to list 400 million shares on either the HCM City or Hanoi bourse, slated by January 2020 at the earliest. The starting price of Bamboo Airways share is VND50,000 or VND60,000, or $2.59 per share.

At a roadshow on stock investment opportunities last week, Bamboo Airways announced that it is conducting negotiations to sell shares to foreign strategic investors. The share price is believed to be ‘no lower than VND160,000’.

According to Nguyen Thien Tong, former head of the Department of Aeronautical Engineering under the HCM City University of Technology, in other countries, civil aviation is a special business field, so they apply restrictions on foreign ownership ratios owned by investors from certain countries which may have negative influence on them.

Because of the concerns about security and national defense, as well as the impact on socio-economic development, Vietnam, when joining WTO, did not commit to allow foreign investors to develop airports. Under the BIT agreement, Japanese investors can invest under the mode of joint venture to operate river ports, seaports and air terminals.

The investment mode is transferring shares and capital contribution to seaport enterprises to foreign investors. The foreign ownership ratio must not be higher than 30 percent of chartered capital.

Bamboo Airways has to observe the current laws when selling shares to foreign investors. It can only sell shares to investors from certain countries such as Japan, and the amount of shares it offers must not be higher than the allowed level.

Besides, Vietnam needs to take precautions to prevent shares from being sold to other investors and eventually falling into the hands of unwanted investors who may sway airlines’ operations, thus causing disadvantages to Vietnam’s aviation industry.

Local newspapers reported that many Vietnamese have come forward and collected land in Da Nang, Khanh Hoa and Hai Phong to resell to Chinese people to do business and organize gambling.

“The same thing may happen in the aviation sector,” Tong warned.

Regarding the share price of VND160,000, Tong noted that Bamboo Airways, which took off in January 2019, had taken a loss of VND329 billion as of April 2019.

“It is understandable that an airline takes a loss in the first phase of operation. But it is not understandable that an unprofitable airline still sells shares at a high price,” he said.

Le Ha

Bamboo Airways passes IATA operational safety audit

Bamboo Airways passes IATA operational safety audit

Vietnam’s newest carrier Bamboo Airways is scheduled to receive the International Air Transport Association (IATA) Operational Safety Audit (IOSA) certificate at a ceremony in Hanoi on January 3.

Bamboo Airways set to receive first Dreamliner

Bamboo Airways set to receive first Dreamliner

Bamboo Airways will receive its first wide-body Boeing 787-9 Dreamliner at Noi Bai International Airport in December, the first of many such aircraft to join its fleet at the end of 2019 and early 2020.

MORE NEWS

Central bank not tighten real estate credit: Deputy Governor

The State Bank of Vietnam (SBV) has never issued any documents or statements ordering credit for real estate be tightened, Deputy Governor Dao Minh Tu said on February 8.

Vietnamese Prime Minister starts official visit to Singapore

Prime Minister Pham Minh Chinh, his spouse, and a high-ranking Vietnamese delegation arrived in Changi Airport on February 8 afternoon, starting a three-day official visit to Singapore.

Businesses discuss ways to overcome challenges in 2023

Warned that uncertainties will still exist in 2023, businesses need to prepare well to weather the storm.

Vietnam's bond market remains quiet this year

The scale of debt in the corporate bond market is less than 15 per cent of GDP.

Organ trafficking in Vietnam driven by high demand, low rate of donation: experts

A conference on organ donation registration and the prevention of human organ and tissue trafficking was held on Monday.

VCCI proposes allowing businesses to set fuel retail prices

The Vietnam Chamber of Commerce and Industry (VCCI) has written to the Government suggesting fuel retail prices be decided by businesses based on supply and demand to prevent fuel shortages.

VIETNAM NEWS HEADLINES FEBRUARY 8/2023

Vietnam puts children at centre of development policies, strategies: Ambassador

Gov’t issues action plan to realize Hanoi’s development vision until 2045

The Government has issued an action plan to realize Politburo’s resolution on the objectives for Hanoi’s development until 2030, with a vision to 2045.

Commercial sidewalk use may be charged by HCMC authorities

HCMC is planning to allow the paid use of sidewalks for commercial purposes such as vending goods or parking if these business activities leave a space of at least 1.5 meters wide for pedestrians.

CAAV advises caution when buying air tickets

The Civil Aviation Authority of Viet Nam (CAAV) has received feedback on the fact that passengers have to buy air tickets higher than the specified prices on domestic routes, especially during the peak of the Lunar New Year (Tet).

Prime Minister leaves Hanoi for official visits to Singapore, Brunei

Prime Minister Pham Minh Chinh, his spouse and a high-ranking delegation of Vietnam left Hanoi at noon on February 8 for official visits to Singapore and Brunei from February 8-11.

US war veteran wishing to return wartime diary to Vietnamese family

Pater Mathews, a US war veteran, has emailed relevant agencies of Ha Tinh province, central Vietnam, expressing his desire to fly to Vietnam and return a Vietnamese martyr’s diary he came across decades ago to the martyr’s family.

VIETNAM BUSINESS NEWS FEBRUARY 8/2023

January payment transactions via national public service portal valued at 11.8 mln USD

Vietnam needs new products, services to reach tourism targets

To realise the targets of attracting 110 million tourists and earning some 650 trillion VND (27.5 billion USD) in revenue this year, Vietnam is recommended to develop more products and services to offer new experiences to visitors.

PM Chinh’s Singapore visit expected to advance bilateral trade ties

Prime Minister Pham Minh Chinh’s Singapore visit from February 8-10 aims to affirm the determination to elevate the bilateral economic ties to a new height in the context of many free trade agreement (FTAs) coming into force.
back_to_top