Rise of yen behind ACV losses
The Airports Corporation of Vietnam (ACV) incurred losses of VND1.37 trillion (US$60.8 million) due to the sharp increase in the value of the Japanese yen.
ACV, as a large borrower of Japanese official development assistance (ODA), has released its financial report for the second quarter of the year, showing revenues of VND3.26 trillion. However, its financial costs have increased to VND1.4 trillion, affecting its businesses.
Further, it posted a net loss of VND124 billion because it suffered heavily from appreciation of the yen.
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By the end of June, ACV borrowed more than VND15.6 trillion in Japanese yen through the Japan International Cooperation Agency (JICA) to build a terminal at Tan Son Nhat International Airport.
The corporation also received a preferential loan to build the international terminal at Noi Bai International Airport. Its total loans in Japanese yen were as high as VND15.77 trillion.
However, the Japanese yen has been in an upward trend this year. Vietcombank on September 6 quoted the dong/yen exchange rate at VND212 per yen, posting a surge of 15%, in comparison with VND184 per yen at the beginning of this year.
Last year, ACV reported a loss of VND666 billion due to appreciation of the yen.
This has been the first year in which the corporation has operated under the joint stock company model since July 1.
In 2015, it reported revenues of VND13.3 trillion and post-tax profits of VND1.75 trillion.
The Ministry of Transport has been the largest shareholder at ACV. It also has the largest scale in transport and aviation infrastructure management in the country. It operates 22 airports, including seven international airports and 15 local airports. By the middle of 2016, its total assets were over VND46 trillion.
ACV has targeted to serve 73.4 million passengers, with revenues of VND12 trillion and pre-tax profits of VND2 trillion in 2016.
It is also carrying out 19 investment projects, with total capital of VND5.8 trillion. Some of its large projects include the Tan Son Nhat International Airport expansion, with total investment of VND1.06 trillion, Phu Quoc Airport expansion, with VND696 billion, and Cat Bi International Airport car park, costing VND723 billion.
Its VND336.6 trillion Long Thanh International Airport is expected to be completed by 2025 and serve 25 million passengers per year.
ACV has been selecting consultancy firms to write a feasibility report to submit to the Prime Minister in the third quarter of 2017.
