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Vietjet makes astonishing recovery after pandemic

Vietjet Aviation Joint Stock Company (Code: VJC) on June 27 held its shareholders meeting to review its performance in 2019 and approve its audited financial statement for 2019 and the company’s development plan for 2020.

In 2019, the air carrier continued to achieve a high growth rate and sustainable development with outstanding business results. Last year was an important landmark in the new generation airline’s achievement to carry 100 million passengers.

Last year, Vietjet’s revenue from air transport and pre-tax profit reached some VND41.3 trillion and VND3.9 trillion, up 22% and 27% year-on-year, respectively. Its consolidated revenue and pre-tax profit were around VND50.6 trillion and VND4.6 trillion.

Last year was an important landmark in the new generation airline’s achievement to carry 100 million passengers.

In addition, its ancillary revenue was VND11.3 trillion, up 36% over 2018. The proportion of ancillary revenue in the airline’s total air transport revenue increased from 25.3% in 2018 to 30.4% in 2019, making Vietjet one of the airlines reporting the highest ratio of ancillary revenue to total revenue in the world.

The air carrier also opened 34 new air routes, taking the total number of its air routes to 139, including 44 domestic routes and 95 international routes, and carried 25 million passengers, contributing to the realization of its target to serve 100 million passengers. This is a solid foundation for the airline to rebound after the Covid-19 outbreak.
The Vietjet Aviation Academy, which was invested heavily last year, plays an important role in Vietjet’s sustainable development. The academy has become a leading training center in the region.

Vietjet won multiple prizes in 2019, such as the Best Aviation Enterprise 2019 in ASEAN awarded by the ASEAN Business Advisory Council (ASEAN-BAC) and The Asia Pacific Low Cost Carrier of the year presented by the Center for Aviation (CAPA). It was also honored in Forbes’ top 50 best Vietnamese listed companies and AirFinance Journal’s top 50 best airlines in the world in terms of operations and financial health for two years.

Achievements in 2019 have helped Vietjet become an important airline contributing to the development of the aviation sector and the recovery of the local and global economy. 

Since early 2020, Vietnam’s aviation sector has been significantly affected by the Covid-19 pandemic but has made a fast recovery in the domestic market ahead of that in  other countries.

As soon as the local aviation market is recovered, Vietjet has quickly resumed its operations and opened eight new air routes, increasing the number of domestic routes to 53. Thai Vietjet is also the first air carrier to resume air routes from Phuket International Airport in Thailand and launch five new air routes in Thailand.

By the end of 2020, Vietjet expects to operate 90 aircraft with more than 118,000 flights, carrying more than 20 million passengers.

After resuming operations in the local market and introducing new domestic air routes, Vietjet and the local aviation sector are now preparing themselves for resuming international air services from July once the pandemic is put under control to ensure the safety for passengers and the airline’s staff, contributing to the economy and investment recovery.

The Government has issued multiple programs and solutions to support airlines, such as reducing taxes and fees and providing low-cost capital. By the end of 2020, Vietjet expects to operate 90 aircraft with more than 118,000 flights, carrying more than 20 million passengers.

The air carrier also has a plan to focus on controlling expenditures, such as developing its cargo transport services, purchasing more aircraft, diversifying investment solutions, offering more ground services and considering air transport as its core business line in 2020.

Moreover, it will develop a base of loyal customers, enhance the effectiveness of financial activities and applications on the ecommerce platform, apply the digital transformation to its operation system, use modern management software and arrange systematically its flights and fleet.

Although the global aviation sector is facing considerable challenges, Vietjet’s shareholders approved a plan to pay 2019 dividend in shares at 50%. This is the result of its financial accumulation, sustainable and safe development and operation transparency over the years, bringing high values to investors.

Amid complicated developments of the Covid-19 pandemic, Vietjet, with its effective governance, modern aircraft, flexible business strategies and strong financial capacity, has built a foundation to recover and grasp sustainable development opportunities this year and in the following years.

Reach more:

Vietjet officially announces five direct routes to 1.3 billion people market India

Vietjet sees profit increase sharply, highlights India market

Source: https://english.thesaigontimes.vn/77367/vietjet-makes-astonishing-recovery-after-pandemic.html

Business

Vietnam asks to be excluded from Philippines’ investigations on steel

The Trade Remedies Authority of Viet Nam has asked the Philippines to exclude Viet Nam from three safeguard investigations on some steel products.

Vietnam asks to be excluded from Philippines' investigations on steel

The steel industry of Viet Nam recently faced increasing pressure from investigations for trade defence measures. — Photo enternews.vn

The proposal was stressed in the Trade Remedies Authority of Viet Nam’s consultation letter recently sent to the Philippines’ Department of Trade and Industry.

In the letter, the Trade Remedies Authority of Viet Nam expressed concern about the Philippines’ initiation of three safeguard investigations on steel products imported into the country, including aluminium zinc sheets, coils and strips, pre-painted galvanized iron and pre-painted aluminium zinc, and galvanized iron sheets, coils and strips.

Viet Nam also asked the Philippines to strictly abide by rules for safeguard investigations and imposition in accordance with the World Trade Organisation’s safeguard agreement.

In addition, the Philippines needed to use the most updated import date when analysing and assessing the injuries caused by the imports on its domestic industry.

According to the Trade Remedies Authority of Viet Nam, the Philippines’ imports of the products from Viet Nam were not considerable and it was eligible for Viet Nam to be excluded from safeguard measures following the WTO’s rules.

The agency would continue to cooperate with the Vietnamese Embassy in the Philippines, Vietnamese Trade Office in the Philippines, the Viet Nam Steel Association and producers to keep a close watch on the investigations to protect the legitimate rights of Vietnamese producers and exporters.

The steel industry of Viet Nam has recently faced increasing pressure due to investigations for trade defence measures.

In February, Thailand issued the final conclusion of an anti-dumping investigation on iron steel piles originating or imported from Viet Nam, with the imposition of anti-dumping duties from 6.97 per cent to 51.61 per cent.

At the end of March, Malaysia initiated anti-dumping duty on galvanised steel from Viet Nam with the alleged dumping margin of up to 39.27 per cent.

Canada in March also imposed temporary anti-dumping and anti-subsidy duties on corrosion-resistant steel from several countries, including Viet Nam, at the rates ranging from 36.3 per cent to 91.8 per cent, depending on each enterprise.

Also in March, Australia initiated anti-dumping and anti-subsidy investigations on steel pipe originating from Viet Nam, China, the Republic of Korea and Taiwan.

On May 13, the US Department of Commerce initiated an investigation for tax evasion measures against stainless steel sheet products imported from Viet Nam. — VNS

Source: https://vietnamnet.vn/en/business/vn-asks-to-be-excluded-from-philippines-investigations-on-steel-657902.html

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Vietnam Electricity announces test results of electricity bills

Vietnam Electricity (EVN) announced there were only a few cases of incorrect electricity bills after checking its records from June 25 to July 3.

Vietnam Electricity announces test results of electricity bills

An inspection team checks the electricity meter in Me Linh, Ha Noi. 

EVN’s Deputy General Director of Vo Quang Lam said branches have disciplined related managers and staff who were responsible for incorrect filings as well as implemented better and stricter electricity measuring to avoid similar problems in the future.

Lam said the inspection teams, including an inter-sectoral team from the Ministry of Industry and Trade, the General Department of Standards, Metrology and Quality, the Vietnam Consumer Protection Association and EVN, have conducted inspections at all five Power Corporations across Viet Nam on electricity meter readings and bill calculations.

EVN said it has strictly complied with the law on measurement of electricity meters in the inspections.

The teams concluded: “All meters are in accordance with the approved samples, the certificates including verification stamps and inspection seals are in compliance with regulations and still valid.”

EVN also responded to all requests from customers regarding their electricity bills.

Lam said: “ENV will enhance communication with customers as well as improve customer services in the future.”

According to EVN, increasing electricity use was mainly in households with air-conditioners. For households that do not use air conditioners but fans, the bills do not change much.

Earlier, Nguyen Viet Dung, director of the Institute of Heat and Refrigeration Science and Technology, Ha Noi University of Science and Technology, released a study showing that electricity use in the four months of summer was about 20 to 50 per cent higher than use in other months. In particular, the power consumption of air conditioners accounts for 28-64 per cent, refrigerators from 6-22 per cent, the remainder is electricity consumption of other devices such as TVs, lighting and appliances.

According to other analysts, the power consumption of air conditioners will increase depending on the gap between temperatures. If the indoor air conditioners are set too low while the temperature outside is much higher, the devices consume a lot more power.

For energy saving, users are asked to set the right temperature. For example, if the outdoor temperature is 35 degrees Celsius, the indoor temperature should be about 26-28 degrees instead of much lower.

Energy experts also suggest households have good air conditioners, install them in the right places and clean them regularly for the best energy saving results. — VNS

Source: https://vietnamnet.vn/en/business/vietnam-electricity-announces-test-results-of-electricity-bills-657893.html

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Vietnam struggles to have 5,000 science and tech firms this year

Vietnam would have difficulty achieving the goal of having 5,000 science and technology enterprises this year under the 2011-20 science and technology development strategy.

Vietnam struggles to have 5,000 science and tech firms this year

Students during a class at FPT University. Viet Nam is striving to reach 5,000 science and technology firms this year, but there are obstacles.

The Ministry of Science and Technology has proposed many solutions to reach this goal, including the Decree 13/2019/ND-CP on developing science and technology enterprises effective from March 20, 2019 with better incentives and opened mechanisms.

It has also improved policies and institutions, including amendments of some laws on investment, enterprises and corporate income tax and regulations supporting incubation and development of science and technology enterprises.

The system of mechanisms, policies and regulations on development of science and technology, and creative innovation is synchronised to ensure efficiency in supporting the development of science and technology enterprises and using results of State-invested research on science and technology.

However, Viet Nam now has about 500 science and technology enterprises, reaching 10 per cent of the target.

The ministry has found many barriers to having 5,000 science and technology firms this year.

Pham Duc Nghiem, deputy director of the ministry’s Department for Development of Market and Science and Technology Enterprises, said that the number of enterprises interested in science and technology is not high and programmes as well as disbursement of capital for the development of science and technology firms are also limited.

Recently, the ministry has reformed mechanism on investment to create more favourable conditions for businesses in becoming science and technology firms but they still need to renew themselves, Nghiem said.

Science and Technology deputy minister Bui The Duy said the failure to achieve this goal firstly is the responsibility of the science and technology ministry because its communication on the target is limited.

“The ministry has not cooperated with media agencies to encourage development for science and technology enterprises as well as incentives for those enterprises,” Duy told the Voice of Viet Nam.

Meanwhile, Nguyen Hong Phong, general director of the Tien Nong Agriculture Joint Stock Company, one of the first science and technology companies in Thanh Hoa Province, said it has had a difficult beginning to be recognised as a science and technology company.

Since its establishment in 1995, the enterprise has identified science and technology as a foundation for its development and built a research and development (R&D) centre with modern equipment and technology.

With this R&D centre, the company has implemented many research projects to produce high-quality farming products to increase its revenue and output in farmers’ production.

However, to become a science and technology company is not easy, especially for small and medium sized enterprises like the Tien Nong, according to Phong. The State has many incentives to support the development of science and technology companies such as tax, land and credit, but whether they receive these incentives or not is another issue.

Besides that, Luu Hai Minh, chairman of the Nhat Hai New Technology Joint Stock Company with a certificated science and technology enterprise, said the right of using a State-invested scientific and technological research project has the same value as land use rights.

An enterprise could mortgage its land use right to get loans for development but is not permitted to mortgage the use right of State-invested scientific and technological research to have capital for producing new products, he said. — VNS

Source: https://vietnamnet.vn/en/business/vietnam-struggles-to-have-5-000-science-and-tech-firms-this-year-657891.html

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