Vietnam airlines

Vietnam Airlines recently converted one of its Boeing 787-9 aircraft to transport 40 tonnes of lychee from Hanoi to Ho Chi Minh City.

Before the pandemic its Dreamliners had a busy schedule, flying to Europe, Australia and the ultra busy Hanoi-HCMC sector, and few thought lychees will replace passengers on the modern airplane with a capacity up to 270.

The carrier has also deployed other planes to transport lychee.

Budget airline Vietjet has also been offering freight services to compete with leading logistic providers as demand balloons by the day. It has set up an online freight service , Swift247, in which it owns a 67 percent stake.

In the first three months of 2021, Vietjet transported over 18,000 tonnes of cargo, with its cargo subsidiary contributing nearly 50 percent of total revenues.

Since May, Bamboo Airways has been offer charter flights.

To compete in the summer, the high season for air travel, carriers have offered big discounts on fares and promotions like free check-in baggage to attract customers back.

Bamboo Airways reduced fares by 35 percent when booking five seats or more.

Vietjet offered free insurance to all domestic passengers, including VND1 million compensation per day for loss of income in case of forced quarantine or Covid-19 infection as a result of traveling with it.

Newcomer Vietravel Airlines, which has a fleet of three airplanes, is pricing tickets at below breakeven level, according to Nguyen Quoc Ky, its chairman.

Vietnam Airlines and Vietjet have joined the effort to trial a vaccine passport.

Next month, Vietnam Airlines will implement the International Air Transport Association’s Travel Pass initiative that allows people to store verified Covid-19 test and vaccination certificates on a smartphone app.

This is seen as one of the keys to convincing countries to reopen borders to international travelers.

According to Planespotters, an online database on commercial aviation based in Berlin, Germany, over half of all aircraft in Vietnam are idling in near-empty airports.

Vietnam Airlines is currently operating only 47 of its over 100 planes, including 15 of its 29 wide-body airplanes (A350 and B787).

In the case of Vietjet Air, over 50 out of its 74 airplanes are not flying.

In the first quarter, Vietnam Airlines suffered losses of nearly VND5 trillion ($218,4 million). To generate sufficient cash flows, it is now selling 11 of its A321 CEO planes.

Bamboo Airways has the least number of idle aircraft, nine out of 27.

Vietnam Airlines operated more than 20 flights between Vietnam and the US in 2020.

Currently, Vietnam Airlines is developing a plan to operate 12 flights to bring Vietnamese people to Vietnam from the US and apply for take-off and landing slots at airports.

The first flight is scheduled to depart on June 22 from Hanoi to Washington D.C., via a stop in Alaska. It will arrive in Vietnam on June 24.

With a total round-trip flight time of more than 30 hours, Vietnam Airlines will use the most modern wide-body aircraft such as Boeing 787 and Airbus A350 for flights to the US.

All epidemic prevention and control measures are being implemented by the airline according to the highest safety standards to prevent the risk of infection on the flight.

In 2020, Vietnam Airlines operated more than 20 flights between Vietnam and the United States to transport repatriated citizens, goods and experts.

Flights in the form of charter flights are a stepping stone for the airline to test, evaluate and prepare for a plan to regularly operate the route between Vietnam and the US in the future after the Covid-19 pandemic is under control and market demand changes positively.

Vietnam Airlines is still the first and only airline in Vietnam that has been granted a license to fly to the US by the US Transportation Security Administration (TSA).

TSA’s license issued on June 8 is the most important legal condition for these flights to take off.

Airlines wishing to fly to the United States must have the entire system approved by TSA, and departing airports from Vietnam must also be certified by TSA to be eligible for aviation security.

TSA’s inspection and approval process to license Vietnam Airlines to carry out 12 flights carrying citizens home lasted more than a month.

To prepare the legal procedures for the 12 flights, Vietnam Airlines worked with the US Department of Transportation (DOT), the US Federal Aviation Administration (FAA), the US Customs and Border Protection (CBP), the Civil Aviation Authority of Vietnam and the authorities of the airports that the airline plans to fly to or go through.

Vu Diep

In 2019, representatives of large corporations of Vietnam such as FLC Group, BRG, SeABank, Petrolimex, Vietcombank, Vietnam Airlines and SHB attended the beating of the gong to open the 20th trading session of the Singapore Stock Exchange (SGX).

This was a sign showing Vietnamese corporations’ desire to go to the international capital market as well as international interest in Vietnamese corporations. However, listing on the international floor has been a dream of domestic firms for the past decade.

At the 2009 General Meeting of Shareholders, Vietnam Dairy Products Joint Stock Company (Vinamilk) said that it had been preparing for the listing process on the Singapore Stock Exchange since late 2007. The resolution of the 2007 General Meeting of Shareholders also stated the plan to issue and list 5% of the charter capital of Vinamilk on foreign stock markets. By October 31, 2008, Vinamilk was the first Vietnamese enterprise approved to list on the main trading floor of the Singapore Stock Exchange.

However, in 2011 Vinamilk decided to cancel the plan to list on the Singapore stock exchange. The reasons given are the difference of procedures between Vietnam and Singapore Stock Depository Centers as well as the different shareholder conditions.

In 2012, another Vietnamese corporation stopped its international game. Hoang Anh Gia Lai Group delisted bonds worth $90 million on the SGX. The reason, according to this group, was because the number of bondholders of Hoang Anh Gia Lai international bonds were few and there were few transactions.

In 2014, FLC Group started the process of listing its shares overseas and Singapore was selected as the first destination. However, there were many limitations related to Singaporean law as well as securities and investment laws of Vietnam at that time. Not only FLC but also many large Vietnamese corporations had to postpone this route. In 2017, FLC held a roadshow and if it is favorable, the listing of FLC in Singapore is expected to take place in 2021.

Also in 2017, Nguyen Thi Phuong Thao, CEO of VietJet Air, told Bloomberg that VietJet Air hopes to become the first Vietnamese company to list shares on the New York Stock Exchange. The billionaire also said that some foreign exchanges including London, Hong Kong and Singapore have access to her firm.

The ambition to list on foreign stock exchanges of Vietnamese corporation is high, while the legal framework of Vietnam already exists and the conditions for IPO in foreign countries are not too difficult. However, so far listing on international stock exchanges has not been as successful as expected.

More than a decade has passed, and only one Vietnamese enterprise has listed on the international floor – Cavico (listed on Nasdaq). But it was delisted in 2011 due to a breach of information disclosure.

The international listing heated up again in April 2021, when Bloomberg reported that billionaire Pham Nhat Vuong’s VinFast planned to have an IPO in the US to raise at least $2 billion, with the expectation of a valuation of at least $50 billion.

Shortly after, Bamboo Airways said it also wanted to have an IPO in the US in the third quarter through the issuance of 5-7% of shares, expecting a valuation of $4 billion. Reuters reported that Bamboo Airways Chairman Trinh Van Quyet hired an international auditing firm to advise on its IPO on the New York Stock Exchange.

The journey of more than 10 years and the latest moves show the ambition and continuous efforts of Vietnamese corporations to enter the international capital market, especially the major financial centers of the world. In the eyes of experts, this is an inevitable route and if successful, it will bring enormous benefits to each business, beyond billions of dollars in capital.

Being listed on international stock exchanges to mobilize large capital is the first thing that Vietnamese corporations aim for because it is very difficult to raise billions of USD in Vietnam as the Vietnamese stock market is still small. Meanwhile, international investors and large investment funds on Wall Street or even in Singapore are ready to spend money. And they pay attention to the prospects of businesses in new markets.

Listing on the international stock market brings great advantages in terms of branding. It helps to promote the company’s products and services not only in the home country but also on a global scale. In particular, putting stocks on the international floor forces Vietnamese corporations to standardize their governance, be more transparent and integrate more deeply into the world.

To be listed on foreign stock exchanges, Vietnamese corporations have to meet high requirements. That includes a high level of corporate governance and transparency. Financial statements must comply with international accounting standards. The company must have standard controls over the preparation of financial statements, have anti-fraud programs, have an effective internal audit department, have clear corporate governance and structure with a growth strategy and a history of forming an attractive, reputable and responsible capital source to the social community. These are weaknesses that Vietnamese corporations must improve.

The scale and transaction requirements are also very high. If a company wants to list on the SGX, it must have a minimum capitalization of 80 million SGD; total after tax profit in the last 3 years from 7.5 million USD or more; and at least 25% of the company’s shares held by at least 500 investors.

To be listed on the NYSE, a company must have 5,000 shareholders, 2.5 million shares held by the public, and $100 million in total pre-tax profit in the last 3 years; and stock price from 4 USD or more. Therefore, being listed on the international floor is a guarantee for the growth of the Vietnamese business community.

With these conditions, listing on international stock exchanges for large corporations such as VinFast, Vinamilk or VietJet is not too difficult, especially through the SPAC method.

The benefits are great, but the listing on the international market has not been successful for many years not only because of the strict conditions of international stock exchanges, but mainly because the internal requirements of Vietnamese enterprises have not been met. Listing on the international stock exchanges is seen as a success, but surviving there is difficult. If the conditions for trading and information disclosure are not guaranteed, companies could be delisted soon, and things will become worse.

Listing is done not only to raise capital. For Vietnamese businesses, it is a journey to perfect themselves according to international standards and to move up in the most competitive environment.

M. Ha

Beijing Daxing International Airport: An aerial view of the striking new Beijing Daxing International Airport, dubbed “starfish” by Chinese media.

On Wednesday morning, press, dignitaries and airline representatives waited in place for more than four hours for the arrival of President Xi Jinping, who entered the main concourse of the glistening gold and glass mega terminal just before noon, where he was greeted by airport officials.

Xi sat through a brief highlight reel of the airport’s design and construction followed by speeches filled with praise for the president. The Chinese leader was the last to speak, offering a brief, formal baptism.

“I declare Beijing Daxing International Airport open,” he said.

Later that day, the crowd watched as the airport’s maiden flight took off from one of the airport’s four runways — an honor that fell to Daxing’s main tenant, China Southern, which deployed an Airbus A380, the world’s biggest airliner.

Flights from other airlines due to move to the airport, with a three-letter code PKX, were also scheduled for later in the day. Initially, the only flights making use of the airport are domestic. Customs and immigration are not yet operational, their booths currently empty and free of computer screens.

Flights from Daxing will cover 112 destinations around the globe by next spring.

An airport built for the future

Designed by the late architect Zaha Hadid and her Chinese partners, the airport is built for the future, boasting a terminal the size of 97 soccer pitches — as well as customer-service robots that provide travelers with flight updates and airport information.

Nicknamed “starfish” by Chinese media for its shape of five concourses connected to a main hall, Daxing aims to reduce walking for passengers, long a complaint about many new mega-hubs. CNN

Nearly two years after the launch of anti-plastic waste movement, many supermarkets have committed to banning single-use plastic bags and many organisations have also launched initiatives to encourage people to reduce the use of plastic.

In a recent interview with Vietnamplus online newspaper, Nguyễn Thượng Hiền, Deputy head of the General Department of Environment talked about the use of plastic in the country and measures needed to curb plastic waste.

What have we achieved through the anti-plastic waste movement over the last two years?

Specific and practical activities from the Government and relevant ministries, agencies, localities and local people across the country have brought about encouraging results. It’s not just about awareness, localities and people have taken actions to reduce single-use plastic and pay more attention to recycling and reuse.

In terms of policy, there are laws and regulations approved, aiming to reduce the amount of plastic waste, encourage people to recycle and process plastic as well as combat ocean plastic.

Our national action plan set the target to reduce marine plastic litter by 75 per cent, collect 100 per cent of abandoned, lost or discarded fishing material, and put an end to disposal of fishing waste into the sea. We also aim to have 100 per cent of coastal tourism areas, tourist attractions, tourist accommodations and other seaside tourism services not using single-use plastics and non-biodegradable plastic bags. We also strive for 100 per cent of marine protected areas free of plastic litter.

The government also directed authorities to enhance communication work on plastic waste prevention and control in 2021-2025 as well as strengthen the management, recycle, reuse, processing and reduction of plastic waste.

The Ministry of Natural Resources and Environment (MONRE) has also set an example in this movement and called for its staff to take actions and encourage their families and relatives to join the movement.

It also cooperated with the Ministry of Education and Training to strengthen environmental protection work in 2019-2025, aiming to raise awareness of teachers and students and disseminate information about environmental protection laws.

The Ministry of Health has also issued a directive in 2019 to direct hospitals and health establishments, pharmaceutical companies and stores to limit the use of single-use plastic bags.

Big changes related to this issue have also been seen in most localities.

What are the highlights of the achievements?

In big cities and provinces, many supermarkets have committed to banning single-use plastic bags including Co.op mart Việt Nam, Big C Đà Nẵng, and Big C Hà Nội. Many are using leaves to wrap goods.

Some airlines also committed to paying attention to the use of environment-friendly products on their flights. Many organisations and individuals across the country have called for people to exchange plastic for plants while some food and drink establishments replaced plastic straws with ones made from paper.

With the support of the MONRE, an alliance of businesses against plastic waste has been set up including major manufacturing and retail distribution companies such as TH Group, Coca-Cola, La Vie, Nestle, Nutifood. An agreement on building a circular economy has been signed between the ministry and companies including SCG and Unilever.

Along with the high determination of ministries, agencies and localities, as well as international organisations and educators, the movement has had great impacts on the community and the whole society.

With the results achieved, Việt Nam will be successful in reducing plastic waste and contribute to the sustainable socio-economic development and the establishment of a circular economy.

What should be done to realise the goal of banning single-use plastic by 2025?

Management of plastic waste is a problem that requires drastic, continuous and systematic efforts of authorities at different levels, the community and local people.

To improve the management of waste, the MONRE is reviewing and proposing to the Government several measures.

First, it is important to have guidance documents in the implementation of the Law on Environment 2020 to reduce the impacts of waste, especially plastic waste, on the environment.

It is also necessary to encourage businesses and people to invest, manufacture and use environmentally friendly materials, enhance recycle and reuse of waste as well as build a circular economy.

There should also have regulations requesting relevant organisations and individuals to recycle.

The ministries, agencies and localities need to push scientific research, strengthen the application and transfer of technology, among many others. — VNS