National flag carrier Vietnam Airlines hopes a business restructuring plan will allow it to grow into strong region-wide transport group.
Minister of Transport (MoT) Dinh La Thang said Vietnam Airlines’ business shake-up plan, once rubber stamped by the prime minister, could frame the state corporation’s major development directions in the next eight years.
Its restructuring plan for 2012-2020, after six months in the making, was recently submitted to the prime minister by the MoT.
To turn Vietnam Airlines into strong regional transport group, its restructuring
plan will be based on restructuring business areas, restructuring business and product plans and strategies, restructuring organisation and labour and restructuring investment, finance and corporate governance.
Earlier, in its restructuring draft plan submitted to the MoT in April 2012, it said at completion it would consist of four airlines, 15 subsidiaries and 12 affiliates which were formed from existing businesses parallel to six new ones.
Leveraged on its restructuring plan, Vietnam Airlines aims to see its business targets shooting up during 2012-2020. Particularly, by 2020 the group’s owner capital value would reach $1.41 billion and during this eight year period its revenue from aviation transport would climb to $43.5 billion, associated profits $630 million and total pre-tax profits $1.08 billion.
Besides, business efficiency and impact of businesses having its venture capital on VNA operations are set top criteria when it comes to investment portfolio restructuring.
The state corporation is also mulling divesting from securities, insurance, banking, real estate businesses and those reporting the pretax profit/chartered capital rate of less than 10 per cent. Divestiture slated to be finalised before 2015.
Its initial public offering was set by the MoT to take place before the end of 2013. It also envisages hiking chartered capital through share issuances with state capital amounting 70-80 per cent of total after equitising.