Vietnam’s Vingroup scraps plan to launch airline to concentrate on tech

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HANOI (Information) – Vietnam’s largest conglomerate Vingroup JSC stated on Tuesday it has scrapped a plan to launch an airline and can as a substitute concentrate on expertise improvement and industrial manufacturing.

The corporate final 12 months utilized for a license to launch an airline in 2020 however had but to order any planes.

It has now notified the Ministry of Transport that it’s going to withdraw from the aviation transport providers sector.

“We have to focus our assets on the event of applied sciences and industrial manufacturing, and subsequently we’ve got determined to withdraw,” Chief Government Nguyen Viet Quang stated in an announcement.

Quang stated Vietnam’s aviation market has been creating quickly however there are already a number of airways, and that the group’s transfer to launch one other service would result in oversupply.

Vingroup, as soon as an actual property and retail conglomerate, has grown to turn out to be Vietnam’s largest listed agency with a market capitalization of over $16 billion. It now additionally sells autos, tv units and smartphones and is seeking to enter the synthetic intelligence sector.

Vietnam’s aviation market has been rising at double-digit tempo, attracting new entrants.

Property and leisure agency FLC Group JSC’s Bamboo Airways performed its maiden industrial flight a 12 months in the past to turn out to be the nation’s fifth airline.

Different corporations, together with Thien Minh Group and tour operator Vietravel, additionally goal to launch airways this 12 months.

Vingroup stated it is going to proceed to coach pilots at its VinAviation academy.

Reporting by Khanh Vu; Modifying by Himani Sarkar and Christopher Cushing