Long Thanh Airport: investment rate high, ACV may lack money

The Ministry of Finance (MOF) has warned about problems with the Long Thanh International Airport project, citing capital arrangement capability.

MOF has sent a document to the Ministry of Planning and Investment (MPI), showing its opinions about the draft report on the results of the feasibility study evaluation of Long Thanh International Airport (phase 1).

Long Thanh Airport: investment rate high, ACV may lack money

The draft report showed that the total investment capital after the verification and update in accordance with the Decree 68/2019 is VND109.111 trillion, or $4.66 billion.

Verification consultants, after considering the figures about the investment rates of some airports in the world, noted that the investment rate per million of clients of Long Thanh, $188 million per 1 million passengers, is ‘at a high level'.

Meanwhile, the consultants pointed out that many materials, equipment and machines to be used for the project are available in the domestic market, and friendly to the environment.

Therefore, MOF has requested that MPI ask the verification consultancy firm to explainwhy the investment rate of Long Thanh project is higher than the other projects, as well as advantages and distinctive characteristics of Long Thanh compared with the projects (if any).

MOF also expressed its worries about the financial capability to implement the project, especially in the context of Covid-19.

Under a National Assembly resolution, the project will be implemented with capital to be mobilized from investors, without the government’s guarantee. The component projects No 2 (the works that serve flight control) are worth VND3.176 trillion, will be implemented with capital from VATM (Vietnam Air Traffic Management Corporation), including VND1.588 trillion from VATM equity and VND1.588 trillion from loans.

As for component projects No 3 (the essential works of the airport), the investment value will be VND93.088 trillion and will be developed with capital from the Airports Corporation of Vietnam (ACV), including VND36.102 trillion from ACV and VND56.989 trillion from mobilized capital.

 

This will be a huge amount of capital. Meanwhile, ACV is investing in a series of projects.

ACV has to allocate its resources to the upgrading of 21 out of 22 operational airports and terminals. Besides, it has proposed building the Dien Bien Airport, capitalized at VND1.539 trillion, and Na San Airport at VND2.295 trillion, and upgrading the T2 Terminal at Noi Bai Airport at VND4 trillion and T3 Terminal at Tan Son Nhat Airport at VND11.43 trillion.

VATM has also been assigned to implement many projects on building and upgrading airports, terminals and air traffic control station, and buying equipment to ensure flight operations.

Since March, Covid-19 has hit the whole economy hard and affected the aviation sector.

“The business results and the resource accumulation of ACV and ATM in 2020-2021 and in the time to come may be not as high as planned,” MOF warned. 

Luong Bang

Long Thanh Airport project awaits disbursement of funds

Long Thanh Airport project awaits disbursement of funds

The government’s report to the National Assembly on the implementation of the Long Thanh International Airport project on October 9 shows that little has been done over the last five years.

Land compensation to be paid this year for Long Thanh Airport: official

Land compensation to be paid this year for Long Thanh Airport: official

Chairman of the Dong Nai People’s Committee Cao Tien Dung speaks about the 1,800ha of land that will be made available for the construction of Long Thanh Airport in October

 
 

Other News

.
Realty stocks are attractive: experts
Realty stocks are attractive: experts
BUSINESSicon  25/11/2020 

Though difficulties caused by COVID-19 were reflected in the business results of listed realty firms, experts are still optimistic about the market. ​

Vietnamese farmers sell farm produce via smartphones
Vietnamese farmers sell farm produce via smartphones
FEATUREicon  25/11/2020 

An eel farm of an older man brings turnover of nearly VND10 billion a year, and 99 percent orders are online. Another farmer sold 26 tons of rambutan by contract after putting goods on online sale.

Aviation industry awaits new bigger bailout
Aviation industry awaits new bigger bailout
FEATUREicon  25/11/2020 

Private airlines including Vietjet Air and Bamboo Airways struggling to survive are looking forward for a new support package to maintain their operations.

Black Friday: World under Covid-19 bans, but Vietnamese excited
Black Friday: World under Covid-19 bans, but Vietnamese excited
BUSINESSicon  24/11/2020 

Around the world, Black Friday this year may be very dim because of Covid-19 pandemic. But in Vietnam, people are enjoying the safety of a "new normal", squeezing together to buy discounted goods at shopping malls.

Vietnamese industrial market update – Rise of coastal industrial zones
Vietnamese industrial market update – Rise of coastal industrial zones
BUSINESSicon  24/11/2020 

The demand for industrial property at coastal regions is high, but the supply of industrial land ready to hand over in industrial zones in both regions was scarce.

FDI possible in digital cross-border services
FDI possible in digital cross-border services
BUSINESSicon  24/11/2020 

With regional nations racing to lower their taxes in order to woo more investment, which may dent their coffers, creating feasible policies for collecting taxes is expected to help reach their goals of attracting more high-quality funding.

RCEP will not worsen trade deficit: ministry
RCEP will not worsen trade deficit: ministry
BUSINESSicon  24/11/2020 

The Regional Comprehensive Economic Partnership (RCEP) would not worsen the trade deficit Vietnam was running with signatory markets, according to the Ministry of Industry and Trade.

HCM City hopes to attract investment by allotting more lands in IPs, EPZs for infrastructure
HCM City hopes to attract investment by allotting more lands in IPs, EPZs for infrastructure
BUSINESSicon  24/11/2020 

HCM City authorities plan to offer competitive land rents and other incentives at industrial parks (IPs) and export processing zones (EPZs), and earmark more lands for building infrastructure to attract investment.

HCM City seeks ideas for underground space planning through international competitions
HCM City seeks ideas for underground space planning through international competitions
BUSINESSicon  24/11/2020 

The HCM City Department of Planning and Architecture has reported to the city People’s Committee on underground space planning and underground space management regulations.

RCEP will not make the trade deficit with China worse: MOIT
RCEP will not make the trade deficit with China worse: MOIT
FEATUREicon  24/11/2020 

Worries have been raised that RCEP will lead to a higher trade deficit with partners, especially China. But the Ministry of Industry and Trade (MOIT) doesn’t think so.

Lofty goals achievable through stable regulations
Lofty goals achievable through stable regulations
BUSINESSicon  25/11/2020 

The Ministry of Planning and Investment aims to have 15 Vietnamese private companies with market capitalisation of over $1 billion each by 2025, with that target increasing to 20 by 2030.

Preliminary decision on tyre exports flusters the market
Preliminary decision on tyre exports flusters the market
BUSINESSicon  24/11/2020 

The global demand for rubber and tyre products has been consistently increasing throughout the last decade, with Vietnam being one of the top suppliers of these items.

17th CAEXPO to benefit China-Vietnam cooperation
17th CAEXPO to benefit China-Vietnam cooperation
BUSINESSicon  23/11/2020 

China and Vietnam are friendly neighbors connected by mountains and rivers, and have achieved fruitful results in the sustained economic and trade cooperation. 

More M&A deals in the banking sector next year: local media
More M&A deals in the banking sector next year: local media
BUSINESSicon  23/11/2020 

Vietnam’s equity market may witness big merger and acquisition (M&A) deals in 2021 as local banks are trying to lure foreign capital on the country’s participation in international trade deals.

Office rental rates to fall by end of year: experts
Office rental rates to fall by end of year: experts
BUSINESSicon  23/11/2020 

Office rental rates will continue to drop while supply will be in the non-central business district areas in HCM City in the coming time, according to property research companies.

Foreigners who choose Vietnam as their second home
Foreigners who choose Vietnam as their second home
FEATUREicon  25/11/2020 

While many Vietnamese find their way to developed countries to make a living, many European and American businesspeople consider Vietnam, particularly Da Lat, a good land. 

'Ghost' restaurants flourish in Ho Chi Minh City
'Ghost' restaurants flourish in Ho Chi Minh City
BUSINESSicon  23/11/2020 

Without tables, chairs or waiters, "ghost" restaurants are flourishing in Vietnam, serving only online customers.

When private businesses get stronger
When private businesses get stronger
FEATUREicon  23/11/2020 

The private sector is very active in key sectors of the economy. If there is a "push", they will become an important force with other economic sectors to take the country forward.

Coastal industrial zones attractive to investors
Coastal industrial zones attractive to investors
BUSINESSicon  23/11/2020 

Vietnam’s industrial zones property located near the sea is attracting great attention to investors as they maintain high occupancy rates and rental prices, heard attendants at a conference held in Hanoi on Thursday.

Smarter logistics will benefit Vietnam: experts
Smarter logistics will benefit Vietnam: experts
BUSINESSicon  23/11/2020 

Smarter logistics are key for Vietnam to advance in the global value chain amid the fourth industrial revolution and the COVID-19 pandemic, experts told the Vietnam Business Summit 2020 held in Hanoi recently.

 
 
 
Leave your comment on an article

OR QUICK LOGIN