The National Assembly Agrees to Help Vietnam Airlines alleviating its financial status brought by the pandemic.
The National Assembly has recently submitted a resolution approving the Government’s proposal to alleviate financial constraints the Vietnam Airlines is facing.
The National Assembly asked the State Bank of Vietnam to offer low-interest loans to Vietnam Airlines. They have also been allowed to provide shares to their existing shareholders in order to raise charter capital.
Vietnam’s government owns approximately 86% of the airline and will buy some shares through the State Capital Investment Corporation.
Alongside with this, the National Assembly has commanded a strict inspection and supervision of the approved solutions to make sure it functions according to the law.
Vietnam Airlines is encouraged to work on finding solutions to lessen the financial losses and manage business activities effectively – giving more attention to employee benefits.
The National Assembly sees the pandemic situation will not be uplifted soon thus it has approved feasible solutions to help Vietnam Airlines – the national aviation carrier of the country.
Both the Vietnam Airlines and Commission of the Management of State Capital at Enterprise have subsequently asked the Government and the National Assembly to allocate VND4 trillion with no designated interest for the upcoming 3 years.
Due to the COVID-19 situation, the airline has suffered a total loss of VND 10.75 trillion from January to September. Albeit it has contributed nearly VND45 trillion to the state budget.
COVID-19 has taken its toll on all nations impacting several industries which has caused an abrupt increase of unemployment. How Covid-19 affect tourism in Vietnam, read here: https://www.expatvn.com/covid-19-tourism-impact-on-vietnam/