return icon Vietnamnet.vn

Commencement date nears, but capital sources for Vietnam's giant Long Thanh airport still unclear

The Long Thanh International Airport project is scheduled to kick off in 2021, with the first phase of the project expected to be completed by 2025.

Long Thanh is expected to help ease the overloading at Tan Son Nhat Airport in HCM City.

 

{keywords}

 


The investment capital for the first phase of the project is VND111.689 trillion, or $4.779 billion. The huge project has total investment capital of $16 billion.

The question now is how to mobilize the capital for Long Thanh. Using ODA capital is not a good solution for Vietnam to consider, because this will increase public debt. Besides, the country will have to satisfy requirements set by donors, which will raise the total expenses.

Therefore, the government has decided not to use ODA. Instead, the government wants the National Assembly to approve the proposal to assign the Airports Corporation of Vietnam (ACV) to implement the major items of the first phase of the project.

However, under the Law on Bidding, it is necessary to organize bids to choose contractors to implement the project. The assignment to ACV will also need the National Assembly’s ratification.

Under the Law on Bidding, it is necessary to organize bids to choose contractors to implement the project. The assignment to ACV will also need the National Assembly’s ratification.

Experts affirmed that choosing investors through bidding is the best solution which will ensure transparency and efficiency. 

An analyst, citing the cases of regional airports such as Changi in Singapore, Suvarnabhumi in Thailand, Incheon in South Korean and Kuala Lumpur in Malaysia, said that these airports were either implemented by state-owned enterprises or joint stock enterprises where the state holds the controlling stake. Later, the State may sell a part of the state’s capital.

ACV, in which 95.4 percent of capital is held by the State, had benefited from the boom of the aviation market in the last few years. The enterprise’s 2015-2018 finance report showed that ACV’s revenue increased from VND13.172 trillion in 2015 to VND16.089 trillion in 2018. Therefore, ACV has an abundant cash fund.

According to Lai Xuan Thanh, chair of ACV, the corporation has prepared its resources and prepared a plan to exploit Long Thanh when it becomes operational.

ACV is now managing 21 airports throughout the country, so it will be reasonable if it invests in Long Thanh and manages the airport in the future.

It is expected that ACV will be able to arrange the capital of VND36.607 trillion, or 37 percent of total investment capital. It will have to borrow $2.628 billion.

ACV has met with 12 domestic and foreign institutions and signed agreements on cooperation and capital arrangement with total proposed value of over $5 billion.

Kim Chi 

 

Long Thanh international airport will operate by 2025: transport minister

Long Thanh international airport will operate by 2025: transport minister

Long Thanh international airport will open its doors by 2025 at the latest and will handle 25 million passengers and 1.2 million tonnes of goods a year once the first phase is completed.

Gov’t proposes naming ACV as investor in Long Thanh airport

Gov’t proposes naming ACV as investor in Long Thanh airport

The Government has proposed naming State-owned Airports Corporation of Viet Nam (ACV) as the main investor for the first phase of Long Thanh International Airport in the southern province of Dong Nai.  

MORE NEWS

More foreign visitors to HCMC signals thriving tourist season

Roughly 100 French, American, German tourists traveled to Ho Chi Minh City on French Le Laperouse yacht of Ponant after the last visit in mid-November 2019 signaling a thriving tourist season.

First monkeypox infection detected in HCM City

The Ho Chi Minh City Department of Health has just announced the first reported case of monkeypox in Vietnam.

VIETNAM BUSINESS NEWS OCTOBER 3

2.97 billion USD in FDI poured into HCM City in 9 months

Trendy jobs in Vietnam

New and fashionable professions are being pursued by many young people. But not everyone is succeeding.

Shooting star targets bright future

After the retirement of senior champions, the Vietnam shooting team is now relying on its younger athletes, such as 18-year-old Phi Thanh Thao, who was recently nominated as Best Young Athlete of 2022 at the prestigious Victory Cup.

Hanoi needs world-class entertainment sites to lure tourists

According to experts, the lack of world-class amusement and entertainment zones is a big "hole" in Hanoi's tourism.

HCM City tightens management of food labelled 'organic'

Many families choose organic food though recently several supermarkets and e-commerce platforms had to apologise to consumers after non-organic food was labelled and sold as organic.

Vietnam win ticket to 2022 Futsal Asian Cup quarterfinals

Despite their defeat in the match against Japan on October 2, Vietnam’s national futsal team will advance to the quarterfinals in the 2022 Futsal Asian Cup as it ranked second in Group D.

Many parts of Vietnam saw increased fertility rates during pandemic

Fertility rates over the past two years increased across many localities in Vietnam, and it was even higher than the total replacement birth rate, said Director General of the General Department of Population and Family Planning Nguyen Doan Tu.

HCMC plans to eliminate 20,000 slum areas by 2025

According to the Ho Chi Minh City Department of Construction, over the past 20 years, the city has removed 36,000 slum areas along canals, but there are still about 20,000 of them.

Vietnam to have 33 new highways by 2030

With 33 highway projects totaling nearly 3,000 km long planned for construction in 2021-2030, a decade of busy expressway building is expected.

Viettel, VNPT lead Vietnam’s Top 10 most valuable brands

Four telecommunications brands of Vietnam have a total value of 13,136 million USD.

Floods kill eight in Nghe An, Ha Tinh

Heavy downpours and floods in the north central region claimed the lives of eight people in Nghe An and Ha Tinh provinces as of 5:30pm on October 2.

Localities urged to rectify flaws in fishery sector

With the visit of the European Commission’s delegations ahead, Vietnam’s ports and fishers are aiming to remedy the previously criticised issues regarding international fishing regulations.

Market likely to continue to correct this week

Analysts said that in the current environment, financial markets will be very likely to continue revaluing.
back_to_top