Vietnam Airlines (HVN) Disburses VND 4,655B of Share Sale Proceeds

Overview

Vietnam Airlines (HVN, HOSE) has disbursed more than VND 4,655B of the VND 8,971B raised in its September 2025 share offering, according to a progress report filed under offering certificate 229/UBCK-GCN dated 3 July 2025. The Ho Chi Minh City Stock Exchange (HoSE) simultaneously kept HVN under warning status because audited H1 2026 retained earnings remain negative at VND 23,148.19B. The disclosure matters for holders because it quantifies how much of the equity raise has actually reached the balance sheet and how far the airline remains from clearing its warning designation.

Key Facts

• Vietnam Airlines sold more than 897.1 million shares out of 900 million offered on 16 September 2025, at VND 10,000 per share, raising over VND 8,971B.
• Cumulative disbursement from 24 September 2025 to 16 September 2026 reached over VND 4,655B, leaving nearly VND 4,315.5B unused.
• Of the amount deployed, over VND 2,307.2B went to supplier payments and more than VND 2,348.3B to loan repayments.
• HoSE maintained the warning under Decision 592/QD-SGDHCM dated 10 July 2026, citing negative retained earnings of VND 23,148.19B as of 30 June 2026.
• H1 2026 net revenue was over VND 75,186.1B, up 28.4% year on year, while net profit fell 40.2% to nearly VND 3,851.8B.
• Total assets rose 8.8% from the start of 2026 to nearly VND 79,450B, including fixed assets of over VND 23,698.6B and short-term receivables of more than VND 11,376.3B.
• The offering was conducted under certificate 229/UBCK-GCN issued by the Chairman of the State Securities Commission on 3 July 2025.

What Happened

Vietnam Airlines reported that it has used the proceeds from its September 2025 offering in line with the stated plan. The carrier said the funds are earmarked for payments tied to production and business operations, specifically settling due and overdue supplier obligations, repaying maturing short-term and long-term loans, and covering part of its refinancing needs. Between 24 September 2025 and 16 September 2026, the company allocated more than VND 2,307.2B to suppliers and over VND 2,348.3B to lenders, leaving roughly VND 4,315.5B unspent. The report was filed under the offering certificate issued by the State Securities Commission on 3 July 2025.

Separately, HoSE issued a notice confirming that HVN remains under warning status under Decision 592/QD-SGDHCM dated 10 July 2026. The exchange cited the company’s consolidated reviewed H1 2026 financial statements, which show accumulated undistributed after-tax losses of VND 23,148.19B at 30 June 2026. Under point b, clause 4, Article 40 of the listing and trading regulations issued under Decision 22/QD-HDTV dated 16 March 2026, the stock does not yet meet the conditions for removal from the warning list. The reviewed H1 2026 statements also showed net revenue of over VND 75,186.1B, up 28.4%, and net profit of nearly VND 3,851.8B, down 40.2%.

Market Context

HVN trades on HOSE and closed at VND 21,000 on 21 September 2026, roughly double the VND 10,000 subscription price of the September 2025 offering. The airline sits in the aviation sector, where earnings are sensitive to fuel costs, exchange rates, and international seat demand. The divergence between 28.4% revenue growth and a 40.2% profit decline points to cost pressure or non-operating items absorbing the top-line gain. The retained-earnings deficit of VND 23,148.19B remains the binding constraint on the stock’s regulatory status, and the pace of future disbursement is the clearest signal of how quickly the carrier can repair its balance sheet.

Strategic Significance

The core thesis for HVN is deleveraging through equity rather than operating cash flow alone. Roughly half the raise has now been converted into reduced supplier and lender obligations, which lowers near-term interest and default risk but does not by itself restore positive retained earnings. The remaining VND 4,315.5B gives management a buffer to continue paying down maturing debt and refinancing facilities, but the warning designation will persist until accumulated losses are cleared, a process that depends on sustained profitability. For long-term investors, the key variable is whether revenue growth can translate into net profit expansion after the cost base normalizes, since the current H1 2026 result shows margin compression rather than operating leverage.

What to Watch

• Further disbursement updates on the remaining VND 4,315.5B and the specific split between supplier and loan repayments.
• Q3 2026 and full-year 2026 earnings, to test whether the 40.2% net profit decline in H1 reverses.
• Any HoSE notice on removal or continuation of the warning status, tied to retained earnings at future reporting dates.
• Progress on refinancing of short-term and long-term debt maturities disclosed in the offering plan.
• Fuel price, exchange rate, and international passenger volume trends that drive aviation sector margins.