Sharing at the Government's monetary policy management conference on the morning of March 14.3, Mr. Dang Ngoc Hoa, Chairman of the Board of Directors of Vietnam Airlines, said that although the impact of the Covid-19 epidemic is huge, the aviation market is recovering.
Mr. Dang Ngoc Hoa, Chairman of the Board of Directors of Vietnam Airlines
In 2023, although not as good as before the pandemic, thanks to the Government's drastic support, such as visa policy, Vietnam Airlines has helped recover about 80 - 90% compared to before the epidemic (2019).
Vietnam Airlines leaders also said that many factors impact the aviation industry such as geopolitical conflicts in the Middle East and Russia - Ukraine, causing costs to increase very high. Compared to the peak in 2023, the country's airlines had 223 aircraft, but now it has decreased by 25%, in the first quarter of 1 there are only 2024 aircraft.
In addition to the reason of having to recall the aircraft for repair, some airlines have difficulty due to creditors tightening their debts and bringing the aircraft back abroad.
Given that lending interest rates are still high and difficult to access, Mr. Hoa proposed that lending interest rates can be supported, especially medium and long-term lending interest rates. Regarding the exchange rate, a change of 1% will increase the cost of Vietnam Airlines by 300 billion VND, a change of 5% will increase the cost of 1.500 billion VND. Therefore, the company wants the exchange rate to stabilize at the lowest possible level.
“In the restructuring project, Vietnam Airlines has a solution to increase its charter capital this year. We hope that the Government and the State Bank will direct financial institutions to support this capital increase...", Vietnam Airlines Chairman said, citing Singapore's Temasek as supporting stimulus loans for Singapore Airlines of 15 billion USD.
Mr. Le Manh Hung, Chairman of the Board of Directors of Vietnam Oil and Gas Group, said that there needs to be appropriate interest rates for large corporations or super projects.
Mr. Le Manh Hung, Chairman of the Board of Directors of Vietnam Oil and Gas Group (Petrovietnam), said that monetary policy management plays a very important role, especially in conditions where the ratio of outstanding credit debt to GDP is low. one of the highest countries in the world.
With Petrovietnam, the credit structure of the entire consolidated group to date is about 240.000 billion VND. If interest rates increase by 1%, the group's capital costs will increase to about 2.400 billion VND/year.
Therefore, restructuring capital and finance in production and business activities, especially in Petro Vietnam's investment projects, is very important, helping to reduce the average cost of capital in each project.
Petrovietnam is in the process of negotiating with banks to restructure these loans, with new loans with lower average capital costs, helping to reduce production and business costs of the joint venture company. This is more optimal, step by step overcoming difficulties.
“In difficult market conditions, when businesses use large financial leverage, we need to apply models such as profit before interest and depreciation models to balance and calculate production. business operations and optimizing costs, including financial costs, through restructuring capital sources used for businesses," Mr. Hung stated.
According to the 2021 - 2025 plan, Petrovietnam plans to mobilize about 250.300 billion VND from credit for investment and development. The group's leaders requested the Government and the State Bank to continue to maintain optimal and stable interest rate policies.
PVN's foreign currency loan balance is 38.000 billion VND, equivalent to about 1,5 billion USD. Therefore, exchange rate fluctuations and risks greatly affect the group's production and business activities.
Besides, Petrovietnam's investment projects have a very large scale, with a very large loan volume such as the Nghi Son Refinery and Petrochemical Plant project up to nearly 5 billion USD...
“The Government and the State Bank should have policies to support banks, especially large corporations and large projects, and raise the loan limit ceiling. At the same time, super large projects can access and use domestic credit sources," Mr. Hung proposed.
