On the afternoon of June 26, the National Assembly discussed in the hall the plan to extend debt repayment for refinancing loans according to Resolution No. 135/2020/QH14 dated November 17, 2020 of the National Assembly .
Speaking at the discussion hall, delegate Tran Hoang Ngan (Ho Chi Minh City Delegation) said that Vietnam Airlines' revenue has seriously decreased in recent years.
This delegate cited a loss of VND8,743 billion in 2020. Given this situation, Vietnam Airlines is likely to lose liquidity.
In 2021, Vietnam Airlines continued to suffer heavy losses of over VND 11,800 billion. By 2022, although the plan was to lose about VND 35 billion, the final loss was VND 8,841 billion.
Next, in 2023, despite the expected profit plan, it once again lost 4,789 billion. Over 4 years, Vietnam Airlines has lost more than 34,000 billion VND.
Delegate Tran Hoang Ngan said that if Vietnam Airlines is not given a debt extension, it will seriously affect its liquidity, maintain its business operations, and even lead to bankruptcy.
"To protect the national brand and especially the state capital at Vietnam Airlines, I continue to propose that the National Assembly extend the debt no more than 3 times in 5 years" - this delegate stated.
In addition, delegate Tran Hoang Ngan said that in order to have a fundamental solution to ensure sustainable development for Vietnam Airlines in the coming time, it is necessary to restructure debt, including reducing short-term debt by creating conditions for Vietnam Airlines to increase equity, issue shares, etc.
Also on this issue, delegate Ta Van Ha (Quang Nam delegation) supported giving airlines the opportunity to restructure their debt and have the opportunity to recover and develop production and business. However, this delegate suggested enhancing the effectiveness of corporate governance and human resources.
In the context of business losses, there must be more effective solutions in management and rebalancing of costs appropriately, said delegate Ta Van Ha.
Delegate Nguyen Van Than (Thai Binh Delegation) agreed that if Vietnam Airlines is losing money, the government must focus on recapitalizing them.
“We must find out why we were losing money before COVID-19 and why we are losing money during COVID-19. We support the funding but what if we continue to lose money? We must be thorough and fundamental to have a plan. If we keep reporting losses and then using money to support ourselves, it is too dangerous,” emphasized delegate Nguyen Van Than.
This delegate also suggested that recapitalization is necessary, but researching the reasons for the losses and the causes from the beginning without a solution is very dangerous and the consequences later are unpredictable.
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