Connect with us

Business

Vietnam’s aviation industry suffers from Russia-Ukraine conflict

Published

on

The Russia-Ukraine conflict has had an impact on Vietnam’s aviation as airlines have had to change routes and flight activities.

Vietnam’s aviation industry suffers from Russia-Ukraine conflict

According to the Civil Aviation Authority of Vietnam (CAAV) Head Dinh Viet Son, because of the escalation of the war between Russia and Ukraine, the EU, US, UK and Canada have closed their skies to Russia (take off/landing and flying over the countries’ airspaces) and Russia has taken similar moves toward these countries. This has affected Vietnam airlines’ flight activities.

“These have had direct impact on passengers and air carriers as they have led to higher flight costs of airlines, including ones which do not have an embargo, because they have to change air routes, and some issues have arisen, including insurance, payment and provision against risks,” Son said.

As air carriers cannot transit in Russia with flights from/to Europe, they have to fly over Russia, Kazakhstan or North Africa.

And since they have to make a detour, flight time is an additional 60 minutes to 120 minutes, leading to cost increase of $10,600-21,200 per flight.

Vietnam Airlines provides six flights a week between Vietnam and Europe, which means that it has to pay an additional cost of $70,000-130,000 a week. Meanwhile, Bamboo Airways, which provides three flights a week, has to pay an additional $35,000-65,000 per week.

As for flights from/to the US, the adjustment of routes to avoid Russia airspace adds 20-30 minutes to flight time. Vietnam Airlines, with four flights a week, has increased costs of $20,000-40,000.

In addition, the suspension of a fuel supply from Russia and Ukraine has pushed up air fuel prices, putting another burden on airlines.

The air embargo has led to airlines having to choose longer-haul flights and paying higher costs, putting pressure on the global logistics network.

According to CAAV, Vietnam Airlines uses A350/B787 wide-body aircraft for flights to Russia. Eighty percent of the wide-body aircrafts are leased. Under leasing contracts, lessees must not use the aircraft to fly to countries or areas sanctioned by the US and EU, if the use leads to the parties’ violations of the embargo and sanctions.

The owners of aircraft leased by Vietnam Airlines have asked that they not be used for flights to Russia.

Meanwhile, Boeing’s technical support unit in Russia cannot provide support to airlines. Airbus has also announced that it is difficult to give support and transport materials to fix problems. 

Vu Diep

Source: https://vietnamnet.vn/en/business/vietnam-s-aviation-industry-suffers-from-russia-ukraine-conflict-826118.html

Business

Vietnam’s 2022 economic growth projected at 7%

Vietnam’s GDP is likely to expand by around 7 percent in 2022, much higher than 2.58 percent growth of 2021.

Published

on

Minister of Planning and Investment Nguyen Chi Dung made the above statement at the Cabinet meeting in Hanoi on July 4.

With this scenario, the economy needs to expand 9 percent in the third quarter and 6.3 percent in the last quarter this year, the minister said.

In the first half, the Southeast Asian country’s GDP accelerated to 6.42 percent growth compared to the optimistic scenario of 5,1-5,7 percent as figured out in the Government’s Resolution No. 01/NQ-CP, dated January 01, 2021 on major tasks and solutions for implementation of socio – economic development plan and state budget estimate for 2022. 

Especially, the GDP grew 7.72 percent in the second quarter, which is the fastest growth pace for April-June period since 2011.

Earlier, the World Bank predicted Vietnam’s 2022 GDP growth at 5.5 percent if the COVID-19 pandemic is controlled.

The projection is lower than the Vietnamese Government’s predictions at 6.5-7 percent, HSBC at 6.5 percent and Standard Chartered at 6.7 percent.

Source: https://e.nhipcaudautu.vn/economy/vietnams-2022-economic-growth-projected-at-7-3346528/

Continue Reading

Business

Dragon Capital buys 2.1 million shares of Sacombank

Asset management company Dragon Capital has bought 2.1 million shares of HCMC-based Sacombank, increasing its stake in the bank to 6.09 percent.

Published

on

On June 29, two affiliated funds, CTBC Vietnam Equity Fund and Norges Bank, bought 2.3 million shares of the lender while a third, Samsung Vietnam Securities Master Investment Trust, sold 200,000 shares.

The value of the deal is estimated at VND47.5 billion (US$2.03 million) based on the share’s closing price last Wednesday.

Funds under Dragon Capital own 114.8 million shares or a 6.09 percent stake in the bank.

In March, Dragon Capital had raised its stake from 4.98 percent to 5.05 percent, after its largest fund, Vietnam Enterprise Investment Limited, bought 1.25 million shares.

Source: VnExpress

Source: https://e.nhipcaudautu.vn/companies/dragon-capital-buys-21-million-shares-of-sacombank-3346515/

Continue Reading

Business

Vietnam targets 7% GDP growth this year: minister

Published

on

HANOI — Vietnam is aiming for economic growth of 7% this year, the country’s planning and investment minister said on Monday, higher than an official target of 6.0%-6.5% set previously.

To achieve this, year-on-year economic growth in the third quarter needs to be 9.0% and in the fourth quarter 6.3%, minister Nguyen Chi Dung also said during a government meeting.

Dung said Vietnam’s budget was in surplus, giving scope for fiscal policy to be used to support businesses and residents.

“Credit institutions will need to further cut their lending interest rates to reduce input cost pressure for businesses and for the economy,” he said.

Vietnam, a regional manufacturing hub, started lifting its coronavirus curbs late last year, allowing factories to resume full operations.

The economy is recovering after growing only 2.58% last year, the slowest pace in decades.

The Southeast Asian country reported GDP growth of 7.72% in the second quarter, backed by strong export growth, but warned of upward inflation pressure for the rest of the year. 

Source: https://tuoitrenews.vn/news/business/20220704/vietnam-targets-7-gdp-growth-this-year-minister/67932.html

Continue Reading

Trending