Vietnam airport operator ACV to raise charter capital to $1.4bn via share issuance

ACV has submitted a proposal to distribute its VND21.191 trillion ($817 million) in retained earnings as of the end of 2023.

Of this, 30 percent, or around VND7.132 trillion ($274 million), will be allocated to the development investment fund, while the remaining VND14.06 trillion ($541 million) will be paid out as stock dividends to existing shareholders.

ACV will issue more than 1.4 billion new shares, with a dividend rate of 64.58 percent, meaning each shareholder will receive 64.58 new shares for every 100 shares held.

As of May 9, ACV’s market capitalization stood at nearly VND206.6 trillion ($8 billion), placing it among the largest listed firms on Vietnam’s stock market, behind only Vietcombank, Vingroup, Vinhomes, BIDV, and Viettel Global.

Although the issuance will not raise additional cash, it will significantly boost ACV’s registered capital base, reinforcing its financial capacity ahead of numerous major infrastructure investments.

One key project among them is the Long Thanh International Airport project’s phase one, known as a nationally critical project with an estimated investment of VND336.63 trillion ($13 billion).

ACV is the main investor in key components such as the passenger terminal, taxiways, and apron areas.

The corporation also plans to upgrade major airports across the country, such as Tan Son Nhat, Noi Bai, Da Nang, Phu Bai, and Cam Ranh to satisfy growing demand for passenger and cargo transport.

The charter capital hike will also enhance ACV’s creditworthiness and help it secure medium- and long-term loans from both domestic and international financial institutions.

The company is recognized for its robust financial health, with no significant debt and sustained positive cash flow over the years.

ACV currently manages and operates 22 airports nationwide, including nine international ones, effectively overseeing the vast majority of Vietnam’s civil aviation infrastructure.

In 2023, its airports served over 115 million passengers, including more than 35 million international travelers, surpassing pre-pandemic levels.

As air travel demand is expected to soar sharply in 2025 and beyond, especially in international tourism and air cargo transport, this will require expanded capacity, improved safety, and enhanced service quality.

However, aviation experts noted that ACV, once dominant in airport operations, now faces competition from private investors.

Companies like SunGroup have developed terminals in Van Don, Phu Quoc, and Phan Thiet, while T&T Group, which owns Vietravel Airlines, is developing Quang Tri Airport.

This signals a more competitive era in which ACV must increase investment and service quality to maintain its market position.