Vietjet Air records a year-on-year rise of 175% in net revenue to 7.35 trillion VND

Thursday, 02/02/2023 21:15
According to VNA, Vietjet Air saw an impressive recovery after the COVID-19 pandemic as it recorded a year-on-year rise of 175% in net revenue to 7.35 trillion VND (313.4 million USD), and earned profit of 902 billion VND in the last quarter of 2022.
Vietjet aircraft (Photo: VNA) 

The company’s revenue in 2022 hit 32.5 trillion VND, while profit was limited, reaching only 215 billion VND.

It also contributed over 4.3 trillion VND worth of direct and indirect taxes, fees and charges to the State budget.

Last year, the carrier transported 20.5 million passengers aboard 116,000 flights, in which domestic transport increased by 20% compared to 2019 before the COVID-19 broke out.

Photo for illustration (Source: 

Vietjet opened more than 20 new routes in 2022, mainly to the Indian market. As of December 31, 2022, Vietjet had operated a total of 103 routes.

In 2023, Vietjet expects high revenue growth thanks to the reopening of the Chinese market and the increased exploitation of potential international markets including India, the Republic of Korea, Japan and Australia.

Airline on-time performance tops 95% in January

The on-time performance (OTP) of Vietnamese airlines stood at 95.3% in January, down 0.9 percentage points from the previous month, while the number of flights increased 15.6%, said the Civil Aviation Authority of Vietnam (CAAV).

Illustrative image (Photo: VNA) 

Bamboo Airways posted the best OTP, at 96.4%, followed by the national flag carrier Vietnam Airlines 95.9% and Vietjet Air 95%.

The rate of Pacific Airlines was 93.6%, Vietravel Airlines 93%, and Vasco 86.9%.

During the period under review, from December 19, 2022 to January 18, 2023, airlines in Vietnam conducted 29,416 flights, including 10,846 by Vietnam Airlines, 10,693 by Vietjet Air, 4,900 by Bamboo Airways, 1,912 by Pacific Airlines, 579 by Vasco, and 486 by Vietravel Airlines, according to the CAAV.

During the seven-day Lunar New Year holiday (January 20 to 26), airports across Vietnam handled more than 1.9 million passengers, up 58% from the 2022 holiday. The passengers included over 967,000 served by Vietnamese airlines, rising 60.7% year on year, data from the Transport Ministry showed.

Vietnam leads Southeast Asia in exporting furniture to Australia

Australia increased its imports of wooden furniture from Southeast Asian markets last year, with Vietnam making up a significant portion of the overall figure, according to the Ministry of Industry and Trade.

Vietnam leads Southeast Asia in exporting furniture to Australia  (Source: VOV)

According to VOV, specifically, Australia imported wooden furniture products worth US$205.6 million from Vietnam last year, representing a rise of 26.4% against the same period of 2021 year. This was followed by Malaysia with US$101.9 million, up 28.4%, and Indonesia with US$61.7 million, up 15.6%.

The proportion of the imports from these three markets accounted for 22.9% of Australia’s total import value. Among the products, wooden frame chairs, along with living room, dining room, and bedroom furniture were Australia’s major import items.

Experts say there remains plenty of room for Vietnamese enterprises to boost the export of these products to this market in the future as the items only account for a low proportion of Australia’s total wood imports.

However, Australia, one of the most demanding markets in the world, has duly implemented stringent quality standards for imported products, while Australian consumers also have a high standard of living and are typically willing to pay for high-priced imported items if they are satisfied with them.

Vietnamese firms are therefore advised to pour investment into modern equipment to launch products in line with consumer trends, improve product quality, and focus on developing brands for wooden furniture products in an attempt to further penetrate the Australian market.

Statistics compiled by the General Department of Vietnam Customs indicate that the country’s export value of wooden office furniture last year dropped by 15.9% to US$370.3 million year on year.

The strongest decline was recorded in major markets such as the United States, Japan, China, and the UK as high inflation forced consumers in these countries prioritise spending on food and essential goods, thereby reducing spending on office furniture.

Industry insiders point out that the export prospects ahead for wooden office furniture this year remain gloomy as the global economy is forecast to continue to face challenges.

Furthermore, Vietnamese office furniture manufacturers are anticipated to encounter numerous difficulties due to high freight rates, along with a sharp increase in the purchase price of raw wood, leading to rising production costs.

FDI hoped to help realty market develop sustainably in long term

Vietnam’s real estate sector last year attracted an additional US$1.85 billion in foreign direct investment (FDI), retaining its second place among industries drawing FDI with combined investment of US$4.45 billion, accounting for 16.1% of the total FDI poured into the country, VNA cited the report of the Ministry of Construction.

The real estate sector was at second position in FDI attraction in Vietnam last year. (Photo: 

The Ministry of Construction said the FDI inflows in the real estate sector mainly focused on industrial real estate and some big projects.

In the difficult context of the market, FDI is a reliable source of capital for domestic real estate enterprises, helping to promote the sustainable growth of the market in the long term.

Troy Griffiths, Deputy Managing Director of Savills Vietnam, said that the Vietnamese realty market remains attractive to investors despite fluctuations of the world economy.

With a large working-age population and many attractive policies, Vietnam is still attractive, he said, adding that the country has a property market with positive growth, suitable for doing business and investing for a long time thanks to low risks and an inflation rate that is kept at a safe level.

According to the General Statistics Office, from the beginning of this year to January 20, 2023, the total registered FDI capital in Vietnam reached US$1.69 billion.

The sectors related to wholesale, retail, and repair of automobiles, motorcycles, motorbikes, and motor vehicles attracted most of the sum with US$651.9 million, accounting for 54.1% of the total newly registered capital.

It was followed by the processing and manufacturing industry which attracted US$351.2 million, accounting for 29.1%.

The real estate sector lost its second position in FDI attraction in the first month of this year.

However, experts explained that the first month of this year coincided with the long Lunar New Year (Tet) Festival and it was just a "warm-up" time for the real market.

So, the FDI inflows into the real estate sector is expected to increase in the following months./.