Vietnam Airlines allowed to sell stocks to foreign partners

Given the green light from the Vietnamese government, national flag carrier Vietnam Airlines says it will sell 10-20 percent of stocks to foreign strategic partners.

When the State-run corporation goes public, the government will retain a stake of 70-80 percent. During its equalization process, the airline will maintain State capital and issue shares to increase its charter capital.

At present Vietnam Airlines is preparing to go public by selecting a financial consultant, working out an equalization plan, inventorying assets, auditing and other works. The carrier will soon submit its selection of a financial consultant to the Prime Minister for approval.

Over the past few years, Vietnam Airlines has recorded high growth rates in the passenger volume and revenue. Last year it carried eight million passengers and posted revenue at over VND20.3 trillion, increasing by 18 percent and 15.5 percent on 2006, respectively. Its pre-tax profit was VND370 billion last year.

This year, the carrier expects to transport more than nine million passengers, maintaining its annual growth rate of above 14 percent.

Source: VNA, translated by Thuy Anh

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