Vietnam’s MoT proposes to buy back all non-State stake in Airports Corporation

A terminal at Noi Bai International Airport. Visual from ACV's website.

Vietnam’s Ministry of Transport has proposed to buy back close to 4.5 per cent stake, that’s currently not owned by the state, in Airports Corporation of Vietnam (ACV), local media reported.

If the proposal goes through, ACV will become a 100 per cent state-owned firm – a process that will ensure the highest standards of national security for aviation, the ministry said in a proposal it sent to the government.

ACV, which runs 21 airports in the country, has been officially operating as a joint stock company since 2016 after it offered more than 77.8 million shares in its IPO on Ho Chi Minh City Stock Exchange.

The Committee for Management of State Capital (CMSC) currently owns 95.4 per cent in ACV, while foreign shareholders hold another 3.59 per cent. The remaining 0.87 per cent is owned by other shareholders.

In the proposal, the ministry also wants all public aviation infrastructure to be transferred to ACV until 2025, after which it will review and return them to the government.

“As the ACV continues managing and using airports, the facilities and assets will be operated properly, assuring the security and safety for aviation transportation,” MoT said.

ACV was established in 2012 after merging Vietnam’s north, south and central aviation corporations.

Currently, ACV is one of the largest enterprises listed on Vietnam’s stock market with a market capitalization of nearly VND 177 trillion. At the current market price, the State has to spend VND8.1 trillion to buy back 4.5 per cent stake of ACV.

In 2018, ACV had a total asset value of over VND 53 trillion, posted revenue of VND16 trillion and after-tax profit of more than VND6 trillion.