Vietnam Airlines awaits rescue package from National Assembly

The National Assembly of Vietnam is set to deliberate a 12t dong ($520m) rescue of cash-strapped flag carrier Vietnam Airlines, a package in which the state would underwrite the majority of a capital increase and state lenders would offer soft loans. The rescue package comprises a capital increase of 8t dong plus 4t dong of soft loans. The government plans to underwrite 85% of the issued shares through the State Capital Investment Corp., a holding company of state-owned companies, according to the agenda issued on Wednesday by the National Assembly. The rescue plan will be deliberated during the remaining two working days of the current National Assembly session, which will wrap up on Tuesday. Details are to be worked out during deliberations. Vietnam's State Capital Investment Corp. is said to be ready to buy the new shares if lawmakers greenlight the plan. Vietnam Airlines is listed on the Ho Chi Minh City Stock Exchange, with the state controlling 86.19% of its shares and Japan's ANA Holdings, parent company of All Nippon Airways holding 8.77% as of 2019. Regarding the new share issue, 85% would be equivalent to 6.8t dong. The remainder would be left to be picked up by existing investors, including ANA Holdings, a local analyst said.<br/>