Rise of yen behind ACV losses

Hanoi (VNA) – The Airports Corporation of Vietnam (ACV) incurred losses of 1.37 trillion VND (60.8 million USD) 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 3.26 trillion VND. However, its financial costs have increased to 1.4 trillion VND, affecting its businesses.

Further, it posted a net loss of 124 billion VND because it suffered heavily from appreciation of the yen.

By the end of June, ACV borrowed more than 15.6 trillion VND 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 15.77 trillion VND.

However, the Japanese yen has been in an upward trend this year. Vietcombank on September 6 quoted the dong/yen exchange rate at 212 VND per yen, posting a surge of 15 percent, in comparison with 184 VND per yen at the beginning of this year.

Last year, ACV reported a loss of 666 billion VND 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 13.3 trillion VND and post-tax profits of 1.75 trillion VND.

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 46 trillion VND.

ACV has targeted to serve 73.4 million passengers, with revenues of 12 trillion VND and pre-tax profits of 2 trillion VND in 2016.

It is also carrying out 19 investment projects, with total capital of 5.8 trillion VND. Some of its large projects include the Tan Son Nhat International Airport expansion, with total investment of 1.06 trillion VND, Phu Quoc Airport expansion, with 696 billion VND, and Cat Bi International Airport car park, costing 723 billion VND.

Its 336.6 trillion VND 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.-VNA