Vietnam’s Vingroup scraps plan to launch airline to ramp up focus on tech

Photo by Nils Nedel on Unsplash

Vietnam’s largest conglomerate Vingroup JSC said on Tuesday it has scrapped a plan to launch an airline and will instead focus on technology development and industrial production.

The company last year applied for a license to launch an airline in 2020 but had yet to order any planes.

It has now notified the Ministry of Transport that it will withdraw from the aviation transport services sector.

“We need to focus our resources on the development of technologies and industrial production, and therefore we have decided to withdraw,” Chief Executive Nguyen Viet Quang said in a statement.

Quang said Vietnam’s aviation market has been developing rapidly but there are already several airlines, and that the group’s move to launch another carrier would lead to oversupply.

Vingroup, once a real estate and retail conglomerate, has grown to become Vietnam’s largest listed firm with a market capitalization of over $16 billion. It now also sells vehicles, television sets and smartphones and is looking to enter the artificial intelligence sector.

Vietnam’s aviation market has been growing at double-digit pace, attracting new entrants.

Property and leisure firm FLC Group JSC’s Bamboo Airways conducted its maiden commercial flight a year ago to become the country’s fifth airline.

Other companies, including Thien Minh Group and tour operator Vietravel, also aim to launch airlines this year.

Vingroup said it will continue to train pilots at its VinAviation academy.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.