return icon Vietnamnet.vn

Vietnamese competitiors falling out of VN Airports Corporation race

Bank for Investment and Development of Vietnam, the country’s third-largest lender by assets, is seeking governmental permission to cooperate with France’s Aeroport de Paris to jointly invest in Airports Corporation of Vietnam.

Bank for Investment and Development of Vietnam (BIDV), the country’s third-largest lender by assets, is seeking governmental permission to cooperate with France’s Aeroport de Paris to jointly invest in Airports Corporation of Vietnam.

In a proposal submitted to Prime Minister Nguyen Tan Dung in late December, the bank also expressed interest in setting up a consortium with an experienced airport operator appointed by the Ministry of Transport (MoT), to enable it to continue the race to become a strategic shareholder of Airports Corporation of Vietnam (ACV). The lender wants to maintain its 5% contribution to ACV’s chartered capital.

This has been BIDV's second proposal, following the first made in mid-December, when the bank’s chairman Tran Bac Ha sent a document to the government and the MoT, petitioning to lower the application criteria. As argued by Ha, with the current strict requirements no domestic firm would be shortlisted in the race.

However, there seemed to be little chance for BIDV, as December 31, 2015 was the deadline for the submission of documents by qualified investors.

Also in late December, Imex Pan Pacific (IPP) of US dollar millionaire Johnathan Hanh Nguyen, the second Vietnamese firm in the race, has decided to quit just around 10 days after submitting its proposal of contributing 5% of ACV’s chartered capital to the ministry.

"We chose to withdraw in order to focus on the development of some recently-licensed large-scale projects in Ho Chi Minh City and other localities," stated Johnathan Hanh Nguyen in a document recently sent to the MoT.

In fact, IPP has the chartered capital of only VND2.5 trillion (US$110 million). Additionally, its core business line is trading,  not airport operation or financial investment, putting the race over ACV lower in its queue of priorities.

Due to the strict equity requirements set by the MoT, requiring equity of at least US$2 billion as of the end of 2014 for the potential investor as airport operator, and US$5 billion for the investor as financial firm, both IPP and BIDV fall short.

With the withdrawal of IPP, BIDV remains the only domestic investor in the race, which is heating up from strong interest by a number of foreign groups, including France's Aeroport de Paris (ADP), and Japanese investors Taisei and JATCO.

Vu Anh Minh, head of the MoT's Department for Enterprise Management, told VIR that the list of potential investors would be submitted to the MoT for approval in early 2016.

 

related news

VIR

MORE NEWS

VIETNAM NEWS HEADLINES DECEMBER 9

Human rights promoted in labour, social, gender equality aspects

Vietnam Airlines reopens regular flights to China from December 9

Vietnam Airlines' flight VN 502 departed from Ho Chi Minh City to Guangzhou at 9:55 am on December 9, marking the carrier's first regular commercial flight between Vietnam and China after a nearly three-year disruption due to the COVID-19 pandemic.

Trial on Alibaba Company’s scam, money laundering begins

The People's Court of HCM City, on the morning of December 8, opened the Court of First Instance on the case of fraudulent appropriation of property and money laundering at Alibaba Real Estate Joint Stock Company, referred to as Alibaba Company.

VIETNAM BUSINESS NEWS DECEMBER 9

VN attracts nearly US$500 million in start-up ecosystem in 9 months

Opening the Internet in Vietnam: a brave decision

Former Deputy Prime Minister Nguyen Khanh said Vietnam could have opened the internet sooner but it needed to prepare well in technique, human resources, policies, and more importantly, ideology.

'Make in Vietnam' instrumental in going global

Digital technology industry as a bright spot in the economy with an industry-wide revenue of $148 billion, up 10 per cent against 2021.

'La Nina' likely to cause severe cold weather next month for third year running

The average temperature this month could be lower than the previous years by half a degree. Temperatures next month will be similar to previous years.

Two Vietnamese films up for consideration at Oscars

Two Vietnamese movies have been named among Animated, Documentary and International Features nominees for consideration at the 95th Academy Awards (Oscars), as announced by the Academy of Motion Picture Arts and Sciences (AMPAS).

The firefighters who died for others

Four months have elapsed since the day the three firefighters of the Cau Giay District Police in Hanoi sacrificed themselves in service, but their parents, wives and children’s sadness has not subsided.

Reviving investors’ confidence key to restoring bond market health: experts

While it is urgent to tackle the liquidity problem, a fundamental solution is regaining investors’ confidence and stabilising the corporate bond market, experts said.

Prime Minister starts official visit to Luxembourg

Prime Minister Pham Minh Chinh landed at Findel Airport this morning (local time), starting his official visit to Luxembourg at the invitation of Luxembourger Prime Minister Xavier Bettel.

Vietnam co-hosts seminar on UNCLOS’s outcomes

Vietnam, in coordination with Greece, Egypt and Senegal, on December 8 hosted a workshop on achievements and challenges since the adoption of the 1982 United Nations Convention on the Law of the Sea (UNCLOS) 40 years ago.

EU, Vietnam urged to expand cooperation in tackling climate change

Vietnam and the EU should work together to accelerate the transition towards “a carbon-neutral, resource-efficient and circular economy” to tackle climate change, the European Commissioner for the Environment, Oceans and Fisheries has said.

Young couple dream of introducing Vietnamese salt to the world

With their great love of traditional salt, Ho Van Vinh and Tran Thi Hong Tham want to bring rustic and traditional products of their homeland to the world.

Food-delivery apps need to focus on sustainable growth

By offering many promotions, food delivery apps can quickly gain market share, but they also end up creating unsustainable growth.
back_to_top