Extension of Debt Restructuring for Vietnam Airlines Until the End of 2027

The State Bank of Vietnam issued Circular 16, extending the debt restructuring deadline for Vietnam Airlines until the end of 2027, instead of 2024 as previously set. This circular modifies Circular 04/2021, focusing on the refinancing mechanism for Vietnam Airlines and managing loans affected by the Covid-19 pandemic. Article 12 outlines the responsibilities of credit institutions in assessing repayment ability and restructuring loan terms for the airline. The SBV will refinance credit institutions with a maximum amount not exceeding 4 trillion VND, with a refinancing interest rate of 0% per annum. At the 2025 annual general meeting, Vietnam Airlines reported Q2 revenue of 22.1 trillion VND, pre-tax profit of about 1 trillion VND, achieving its annual pre-tax profit plan with parent company profit nearing 4 trillion VND. The circular is effective from July 11.