There is a greater chance that Vietnam Airlines’ shares will be delisted

Following notification to the flag carrier from the Ho Chi Minh City Stock Exchange on September 8, the stock of Vietnam Airlines (VN, Hanoi) is once more in danger of being delisted.

If a public business has losses for three straight years, if the total cumulative loss surpasses the contributed charter capital, or if its equity is negative, its shares are likely to be delisted in Vietnam.

In 2020 and 2021, losses for Vietnam Airlines were close to VND11 trillion dong (USD467 million) and VND13 trillion (USD552 million), respectively. The company’s most recent 2022 half-year consolidated financial statements also revealed a further net loss of over VND5.1 trillion (USD217 million).

It had amassed losses of almost VND29 trillion (USD1.23 billion) as of the end of the second quarter, and its equity was minus VND4.9 trillion (USD208 million). Overdue payables totaled more than VND14.85 trillion (USD1.55 billion), and liabilities were VND36.44 trillion (USD1.55 billion) more than assets (USD637 million). In the study, Deloitte Vietnam issued a warning that the carrier would have trouble continuing its operations.

A pre-tax deficit of VND9.3 trillion (USD396 million) is projected for 2022 by the financially troubled national carrier. But it said it will try to further reorganize its finances and issue more shares to raise funds in a statement in response to the stock market.