ACV Faces Contractor Dispute at Long Thanh Airport, Project Delay Risk

Overview

Airports Corporation of Vietnam (ACV) has reported material disputes with foreign contractor IC Ictas, the Turkish-led leader of the Vietur consortium, on Package 5.10 for the Long Thanh International Airport passenger terminal. The disagreements center on payment currency and cost structure transparency, creating a risk of delays to the project’s overall timeline.

Key Facts

• ACV reports disputes with IC Ictas on Package 5.10 (passenger terminal construction) of Long Thanh airport.
• IC Ictas bid some equipment supply and installation items in USD, totaling over USD 338.8 million.
• ACV identifies four cost categories: locally finished equipment, foreign-origin equipment bought via domestic suppliers, 100% imported equipment, and domestic installation costs.
• ACV argues that some items proposed for USD payment are actually sourced domestically, violating foreign currency payment regulations.
• IC Ictas did not disclose subcontractor details in its bid, preventing ACV from verifying domestic vs. foreign content.
• ACV proposes converting domestic-cost items to VND payment at the exchange rate 3 days before bid closing, but IC Ictas has not agreed.
• The dispute threatens the project timeline, which Prime Minister has ordered to complete by end of 2026.

What Happened

According to a report from Tap chi Hang khong, ACV has submitted a report to the government detailing significant issues with IC Ictas, the Turkish contractor leading the Vietur consortium for Package 5.10 (passenger terminal) of Long Thanh International Airport. The core problem is a mismatch between the bid phase, where IC Ictas quoted certain equipment supply and installation items in USD, and the contract execution phase, where actual costs are incurred from domestic subcontractors and suppliers.

ACV has classified costs into four groups and argues that many items proposed for USD payment are actually sourced domestically, which does not meet legal conditions for foreign currency payment. ACV requested IC Ictas to adjust these items to VND payment at the exchange rate prevailing three days before bid closing to comply with regulations and avoid exceeding the approved total investment. However, IC Ictas has not agreed to this proposal, creating an impasse.

Market Context

ACV shares closed at VND 46,000 on April 14, 2026, up 0.43% with low volume of 222,100 shares. The stock trades on HOSE. The Long Thanh airport project is a critical national infrastructure initiative, and any delay could weigh on ACV’s long-term revenue growth expectations, as the airport is expected to significantly boost passenger and cargo throughput. The dispute adds to recent operational challenges, including labor shortages reported earlier.

Strategic Significance

The dispute highlights execution risks in large-scale infrastructure projects involving foreign contractors, particularly around currency and cost allocation. For ACV, timely completion of Long Thanh airport is central to its growth strategy, as it will relieve capacity constraints at Tan Son Nhat and position ACV as a regional aviation hub operator. Prolonged delays could lead to cost overruns and reputational damage, while a resolution would demonstrate ACV’s ability to manage complex international contracts.

What to Watch

• Resolution timeline: Whether ACV and IC Ictas reach a compromise on payment currency and cost structure.
• Government intervention: Potential mediation or directive from the Prime Minister’s office to break the deadlock.
• Q2 2026 progress report: ACV’s next update on Long Thanh project milestones and any schedule adjustments.
• IC Ictas response: Any public statement or revised proposal from the contractor.
• ACV share price reaction: Market sentiment on project risk, especially if delays become more concrete.