Business
Vietjet interested in overseas listing
VietJet Air, which controls almost half of Vietnam`s domestic airline market, is considering to list its shares on an overseas stock exchange, its founder and CEO Nguyen Thi Phuong Thao mentioned during its shareholders` meeting on April 26.
Thao said Vietjet has been receiving attention from some foreign stock exchanges including London, Hong Kong, Taiwan and Singapore. At present, the company, she said, is working on challenges related to listing overseas such as time zone differences and legal issues.
Le Nhi Nang, Representative of the State Security Commission in Ho Chi Minh City, said to DealStreetAsia that Vietjet should consider an overseas listing, possibly Singapore. If successful, Vietjet will be the first Vietnamese company to officially trade overseas, he said.
The plan for the VND41 trillion (US$1.8 billion) low-cost carrier comes amid the government's easing of rules to allow more foreign investment in one of the fastest-growing aviation markets.
Hanoi-based Vietjet received shareholder approval in April last year to boost its foreign ownership limit to 49% from 30%.
Vietjet had raised US$170 million through an IPO in 2016, attracting large buyers like BNP Paribas, Deutsche Bank and JP Morgan.
HoSE on March 29 informed the Singapore`s sovereign wealth fund Government of Singapore Investment Corporation (GIC) has reduced its ownership in VietJet Air to 4.97% and is no longer a major shareholder of the carrier.
The low-cost carrier's total net revenue in 2017 stood at nearly VND42.258 trillion (US$1.8 billion), a year-on-year increase of 53.7%. Its pre-tax profit was approximately VND4.755 billion (US$211.3 million), up 75.9% year on year.
Vietnam currently has four airlines, including national carrier Vietnam Airlines, budget operator Jetstar Pacific Airlines (partly owned by Vietnam Airlines), budget carrier Vietjet Aviation, and Vietnam Air Services (VASCO).
In 2010-2016, the Vietnamese air transportation market has witnessed a high average growth rate of 14.9% in passenger volume and 10.7% in cargo, informed Vietnam Civil Aviation Administration.
During the first 9 months of 2017, Vietnamese airports have served more than 71.75 million passengers, up 17.9%, and handled 833,000 tons of cargo, up 34.6% compared to the corresponding period in 2016.
A recent World Tourism & Travel Council report showed the tourism industry's contribution to Vietnam's gross domestic product will increase by nearly 90% to US$34.6 billion in 2027 from the US$18.4 billion recorded last year.
Vietjet interested in overseas listing.
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The plan for the VND41 trillion (US$1.8 billion) low-cost carrier comes amid the government's easing of rules to allow more foreign investment in one of the fastest-growing aviation markets.
Hanoi-based Vietjet received shareholder approval in April last year to boost its foreign ownership limit to 49% from 30%.
Vietjet had raised US$170 million through an IPO in 2016, attracting large buyers like BNP Paribas, Deutsche Bank and JP Morgan.
HoSE on March 29 informed the Singapore`s sovereign wealth fund Government of Singapore Investment Corporation (GIC) has reduced its ownership in VietJet Air to 4.97% and is no longer a major shareholder of the carrier.
The low-cost carrier's total net revenue in 2017 stood at nearly VND42.258 trillion (US$1.8 billion), a year-on-year increase of 53.7%. Its pre-tax profit was approximately VND4.755 billion (US$211.3 million), up 75.9% year on year.
Vietnam currently has four airlines, including national carrier Vietnam Airlines, budget operator Jetstar Pacific Airlines (partly owned by Vietnam Airlines), budget carrier Vietjet Aviation, and Vietnam Air Services (VASCO).
In 2010-2016, the Vietnamese air transportation market has witnessed a high average growth rate of 14.9% in passenger volume and 10.7% in cargo, informed Vietnam Civil Aviation Administration.
During the first 9 months of 2017, Vietnamese airports have served more than 71.75 million passengers, up 17.9%, and handled 833,000 tons of cargo, up 34.6% compared to the corresponding period in 2016.
A recent World Tourism & Travel Council report showed the tourism industry's contribution to Vietnam's gross domestic product will increase by nearly 90% to US$34.6 billion in 2027 from the US$18.4 billion recorded last year.
