31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Mar 09, 2020 / 17:47

Vietnam Airlines hardest hit by Covid-19 among major state firms

Most major state-firms are facing a gloomy outlook as Covid-19 is wreaking havoc on the economy.

Flag carrier Vietnam Airlines is forecast to suffer a decline of VND12.5 trillion (US$542.51 million) in revenue and a loss of VND4.3 trillion (US$186.62 million) in profit in 2020, due to a plunge in the number of air passengers on fears of the Covid-19 epidemic, according to the Commission for Management of State Capital at Enterprises (CMSC).

 Illustrative photo. 

This means the airline would be unable to fulfil the business plan set by CMSC, dubbed as “super committee”, for this year, CafeF reported, citing the committee’s brief report on the impacts of Covid-19 on the operations of 19 major state-owned enterprises (SOEs) under its administration.

Meanwhile, Airports Corporation of Vietnam (ACV) expected the number of passengers to decrease by over 12 million, a 10% lower than the target set for 2020.

ACV’s revenue in 2020 is estimated to reach 87% of the estimate or a decline of VND2.8 trillion (US$121.41 million), make a pre-tax profit meeting 76% of the estimate, down VND2.6 trillion (US$112.74 million).

Vietnam Railway (VNR) stopped operation of a number of railway routes due  to the lack of passengers. The suspension of Vietnam – Nanning route on February 4 has significantly impacted VNR’s business performance.

VNR’s revenue in 2020 is estimated to decline by VND54.8 billion (US$2.37 million), down 13.3% year-on-year, while revenue from cargo transportation is forecast to be shaved by VND9.9 billion (US$429,377)..

According to Vietnam National Shipping Lines (Vinalines), most shipping fleets are struggling to maintain daily operation, mainly due to the disruption of logistics services for Chinese customers via maritime transportation.

In case the epidemic persists until the end of March or the second quarter, Vinalines expected its consolidated revenue to decline VND1.62 trillion (US$70.23 million) and its profit to fall short of VND534 billion (US$23.15 million) compared to the respective targets.

Petrolimex, Vietnam’s largest petroleum distributor, reported domestic sales of petroleum products in January down 4% month-on-month, while sales in February fell 20%.


Launched nearly two years ago, the CSCM is tasked with managing state capital at 19 leading state-run groups and corporations with combined capital of VND1,000 trillion (US$43.02 billion), or two-third of total state capital, and assets of over VND2,300 trillion (US$98.96 billion).