Vietnam Airlines JSC: Rebuilding a National Flag Carrier in a Turbulent Sky

As Vietnam’s national flag carrier, Vietnam Airlines JSC has long been the country’s pride in the international aviation industry. Founded to connect Vietnam with the world and foster tourism, commerce, and cultural exchange, the airline has developed into one of Southeast Asia’s largest full-service carriers. However, after years of pandemic-induced turbulence and financial instability, Vietnam Airlines is now undergoing a complex restructuring—balancing renewed growth with underlying risk.

This article comprehensively overviews Vietnam Airlines’ current legal structure, key leadership, financial performance, and business challenges. It also explores how credit professionals and strategic partners can leverage company intelligence through due diligence services provided by VNBIS.

Legal Status and Corporate Ownership

Vietnam Airlines JSC operates as a joint stock company, officially registered under Business ID 0100107518. The company was incorporated on June 30, 2010, and is licensed by the Hanoi City Department of Finance. It remains state-owned, with the majority of shares held by government entities. Specifically, the Commission for the Management of State Capital at Enterprises controls 55.2% of the capital, while the State Capital Investment Corporation (SCIC) holds 31.14%. Foreign strategic investor ANA Holdings Inc. of Japan retains a 5.62% stake, with the remaining shares distributed among other shareholders.

Vietnam Airlines is publicly listed on the Ho Chi Minh Stock Exchange under the ticker symbol HVN, and its paid-up charter capital is approximately USD 909.7 million. Historically, this robust equity base enabled the company to finance fleet expansion and develop its international route network.

Executive Leadership and Management Structure

The company’s board and executive leadership comprise seasoned professionals from Vietnam’s aviation and transport sectors. At the helm is Mr. Dang N. H., who serves as Chairman, representing the interests of the state capital while steering strategic reforms. Mr. Le H. H., the General Director, oversees day-to-day operations and has played a crucial role in navigating the post-COVID recovery period. Mr. Le D. C., the Deputy General Director, supports them andbrings experience in corporate planning and regulatory compliance.

With over 23,000 employees, Vietnam Airlines remains one of the largest employers in Vietnam’s transport and tourism sector. The company’s human capital is central to its international reputation for safety, service quality, and operational reliability.

Financial Performance: A Company in Recovery

Vietnam Airlines’ financial data offers a revealing snapshot of both its progress and vulnerabilities. As of the end of 2024, the company reported total assets of USD 2.39 billion, showing slight growth from the previous year. Revenue reached USD 4.35 billion, marking a 15.73% increase year-over-year, fueled by the recovery in international travel and expanding domestic demand.

More remarkably, the company posted a net profit of USD 326.9 million, a dramatic turnaround from the USD 231.3 million loss in 2023. This 241.3% year-over-year improvement in profit is a significant achievement, suggesting that Vietnam Airlines has regained operational efficiency and pricing power across key routes.

However, despite profitability, the company’s equity position remains in negative territory, at -USD 383.9 million. This represents an improvement from -USD 699 million in 2023, but it still poses a structural concern for creditors, investors, and partners. The accumulated losses from the pandemic years have yet to be fully cleared from the balance sheet.

Shareholder Structure and Foreign Partnership

Vietnam Airlines’ shareholder composition is another critical area of interest. As noted earlier, the company remains under majority state ownership. Its strategic partnership with ANA Holdings Inc., Japan’s largest airline group, represents a long-term opportunity for route development and knowledge transfer.

Although modest in percentage, ANA’s 5.62% ownership stake positions the Japanese firm as a key voice in technical cooperation, digitalization, and international customer service standards. This relationship may become even more valuable as Vietnam Airlines seeks to deepen its competitiveness within the ASEAN–Japan–South Korea aviation corridor.

Operational Strength and Market Footprint

Vietnam Airlines operates over 90 aircraft and serves over 60 international and domestic destinations. Its headquarters are at 200 Nguyen Son Street, Bo De Ward, Hanoi, and it has significant operations at Noi Bai International Airport (HAN) and Tan Son Nhat International Airport (SGN).

The airline maintains a full-service model, targeting both premium and mass-market travelers. It has been a SkyTeam Alliance member since 2010, which allows it to codeshare with global carriers and offer expanded benefits to frequent flyers.

Vietnam Airlines also manages affiliated subsidiaries, including Pacific Airlines, VASCO (Vietnam Air Services Company), and Techcombank-Sumitomo leasing arrangements, giving it strategic control over ticketing, fleet leasing, and regional operations.

Post-Pandemic Challenges and Systemic Risks

Despite the improved financials, Vietnam Airlines faces multiple strategic and systemic risks. Among the top concerns is negative equity, a signal that the company has yet to rebuild sufficient capital buffers. This could restrict its ability to raise financing, invest in new aircraft, or expand its digital transformation initiatives.

 Fuel price volatility, currency exchange risks, and air traffic regulation compliance are growing concerns, especially in light of global political uncertainties. The pressure to modernize fleets with more fuel-efficient aircraft is high, but so are the capital requirements—something the airline may struggle with under current equity constraints.

Operational costs in maintenance and international ground services remain above regional averages, particularly when compared to rising competitors like VietJet or Bamboo Airways, which operate under a low-cost carrier model. While Vietnam Airlines enjoys strong brand loyalty, its cost structure must continue evolving to maintain market share.

Finally, climate change mandates, especially from international aviation regulators, may soon impact flight schedules, aircraft usage, and fuel sourcing. These long-term structural shifts require proactive capital allocation and compliance systems.

Why Risk Assessment and Corporate Monitoring Matter

Given Vietnam Airlines’ complexity, creditors, business partners, investors, and insurers need to conduct thorough and ongoing risk assessments. The company's financial rebound is promising, but its retained earnings remain deep in the red, and its working capital position continues to show vulnerability.

Monitoring this company’s performance should not be limited to surface-level revenue metrics. Stakeholders need to examine:

• Liquidity and cash flow management
• Debt restructuring plans
• Exposure to foreign exchange and interest rate fluctuations
• Legal liabilities related to labor and international contracts
• Potential changes in government policy impacting capital injections or subsidies

 VNBIS offers full company reports on Vietnam Airlines JSC for these needs, providing a data-rich view of its financial position, operational structure, legal status, management profile, and credit history. These reports are trusted by global credit insurers, trade financiers, and procurement teams to make informed decisions before engaging in long-term contracts or extending lines of credit.

A Balancing Act Between National Duty and Corporate Viability

Vietnam Airlines is in a delicate stage of its corporate life cycle. On one hand, it has returned to profitability and demonstrated that it can survive and thrive in a post-COVID aviation market. On the other hand, its capital structure remains weak, and the road to financial normalization is long and uncertain.

Its dual role—as a commercial airline and as a national economic actor—means it will continue to receive state oversight and potentially support. However, clear financial transparency, market responsiveness, and strategic partnerships must guide the path forward.

For anyone looking to engage with Vietnam Airlines—whether as a supplier, lessor, creditor, or investor—obtaining an up-to-date and professionally prepared report through VNBIS is a critical first step in reducing risk and making confident, data-driven decisions.