Vingroup scraps Vinpearl Air plan, withdrawing from aviation sector

Conglomerate owned by Vietnam’s richest man Pham Nhat Vuong announced to quit the private air carrier project, it says in a website statement on Tuesday.  

Vingroup, which is seeking approval from the Ministry of Transport on the exit, stated that the decision is a consistent step to maximize resources to realize its strategic target of technology and industry.

The decision to cancel Vinpearl Air project does not affect its pilot training school VinAviation’s operations. The ongoing training course will be maintained with commitments made to students while its involvement in aviation infrastructure construction projects will also be maintained.

“Vietnam's aviation market is very potential and growing strongly, but there are several companies participating in the market. Vingroup's investment in the sector could lead to oversupply. We need to focus on developing technology segment”, Nguyen Viet Quang, vice chairman and general director of Vingroup, said in the statement.

Vingroup aims to become Vietnam’s leading technology-industry-trade in the next 10 years. In order to realize this goal, the group withdrew from retail and agriculture sectors. The decision to stop investing in aviation sector a following step in the company’s restructuring plan.

Related stories: 

► Vinpearl Air to take first flight in July 2020

► Masan to hold 70% stake at retail giant merged with Vingroup’s retail arm

► Vingroup quits retailing to focus on tech, industrial sectors

► Bamboo Airways reports $13 million profit after one year of operation