Vietnam Airlines carries out the mission and responsibility of a state-owned enterprise

In times when the world's geopolitical situation has complicated developments and the domestic economy faces many challenges like today, state-owned enterprises (SOEs) have increasingly affirmed their role as an effective tool to stabilize the macro-economy, regulate, lead and promote socio-economic development.

Over the past 30 years, Vietnam Airlines has transported more than 300 million passengers, nearly 4.5 million tons of cargo, operated more than 1.6 million flights, achieved revenue of 1.1 million billion VND, and paid the state budget more than 65,300 billion VND.

Undertaking political tasks In the field of civil aviation, the participation and role of state-owned enterprises have been closely linked to the development process in all three basic pillars of aviation activities, including: transportation, airports and flight management. In particular, in terms of air transport, Vietnam Airlines has grown and developed for more than 30 years, making positive contributions to the country's socio-economic growth goals. Over the past 30 years, Vietnam Airlines has transported more than 300 million passengers, nearly 4.5 million tons of cargo, operated more than 1.6 million flights, achieved revenue of 1.1 million billion VND, and paid more than 65,300 billion VND to the state budget. Vietnam Airlines' scale of operations reached its peak in 2019, with more than 100 modern new-generation aircraft operating, with revenue reaching more than VND 103,000 billion, more than 100 times higher than when the company was established in 1993. Carrying out the mission of the National Airline, Vietnam Airlines is not only highly appreciated by customers for its professionalism and 5-star service quality, but is also loved for its efforts to successfully carry out political and social tasks for the benefit of the community. Not only is it a pioneer in participating in many major campaigns of the Government in transporting citizens abroad back to the country in case of natural disasters, epidemics, and political conflicts, the National Airline is also a special strategic transport force, a reserve force serving the country's security and defense, ready to fly to transport troops and military equipment, contributing to maintaining national security and defense. In recent years, Vietnam Airlines has continuously modernized its fleet, focusing on operating modern wide-body aircraft such as Boeing 787 and Airbus A350, replacing the new generation narrow-body aircraft to reduce costs, reduce CO2 emissions and improve the quality of passenger service. At the same time, it has promoted digital transformation, built a digital culture, and increased the application of new technologies in all aspects of production and business such as deploying the passenger service system (PSS) and new business management applications. However, in addition to the achievements, Vietnam Airlines is still facing many difficulties and challenges. The pandemic lasting for 3 years (2020-2022) has caused the global aviation industry to freeze, many airlines went bankrupt or applied for bankruptcy protection. In that context, Vietnam Airlines has restructured its assets, capital, human resources, implemented cash flow management solutions, minimized costs, negotiated with partners, and saved more than VND 44,500 billion. These solutions, along with the VND 12,000 billion support package from the National Assembly and the Government, have helped the airline balance its revenue and expenditure and make a profit from 2024. However, recent positive results have not been able to help Vietnam Airlines overcome difficulties and completely overcome the serious consequences of the COVID-19 pandemic. The financial indicators of the National Airline have not returned to a safe level. This is a major obstacle to the development of Vietnam Airlines in the coming time with the orientation of becoming an advanced airline, among the leading airlines in the ASEAN region.

Vietnam is in dire need of a large enough aviation company, with a flight network and fleet large enough to compete with other hubs in the region.

Leading the aviation ecosystem Vice Chairman of the State Capital Management Committee at Enterprises Nguyen Ngoc Canh said that in order to become a new economic and tourism center of stature in Asia and the world, Vietnam needs a large enough aviation enterprise, with a flight network and fleet large enough to compete with other centers in the region. As a state-owned enterprise, along with the National Airline brand, Vietnam Airlines is the right enterprise to implement this strategy. Sharing the same view, Dr. Nguyen Duc Kien, former Head of the Government's Economic Advisory Group, commented: In the new era, Vietnam's aviation industry is opening up more potential and still has a lot of room for stronger development to become a major aviation center in the region. The solution to this problem is to have a "main engine" to give wings to the entire aviation industry ecosystem. "Specifically, investment is needed to create new production capacities, have strategic orientations in the industry, and restructure market shares, and develop new market shares. With the orientation of the state economy as an important material force for the State to stabilize the macro economy, regulate and promote economic development, these solutions and tasks need to be assigned to Vietnam Airlines. And in fact, Vietnam Airlines' commercial business activities also clearly demonstrate the leading, key and leading role of state-owned enterprises," said Dr. Nguyen Duc Kien. According to Vietnam Airlines Chairman Dang Ngoc Hoa, state-owned enterprises have great potential but are not yet completely autonomous in production and business activities to seize development opportunities and improve competitiveness. Therefore, it is necessary to promote decentralization and delegation of authority to help enterprises be more proactive in production, business, and investment project decisions, creating a breakthrough push for economic groups, state-owned enterprises in general and Vietnam Airlines in particular to overcome difficulties, becoming corporations and general companies with strong brands in the regional and international markets. Source: https://baochinhphu.vn/vietnam-airlines-thuc-hien-su-menh-va-trach-nhiem-cua-doanh-nghiep-nha-nuoc-102241122122910832.htm