Scope of Vietjet Aviation Joint Stock Company

A. Stakeholders: A person, group or organization that has interest or concern in an organization.

Stakeholders can affect or be affected by the organization’s actions, objectives and policies.

(Source: http://www.busineszsdictionary.com/definition/stakeholder.html )

B. Internal Stakeholders:

1. Pilots, flight attendants, equipment assembly workers, etc.:

- In 2020, while many airlines around the world simultaneously cut staff in order to maintain business
operations during the ongoing Covid-19 pandemic, Vietjet took advantage of the opportunity to recruit
qualified personnel from the domestic and international labor market. During the year, Vietjet recruited 792
new employees including 13 pilots, 125 flight attendants and 654 other employees. The total number of
Vietjet's own employees as of December 31, 2020 is 5,468 employees, an increase of 8% compared to 2019.
- The company is always in the Top 100 BEST WORKSHOPS IN VIETNAM voted by Anphabe and Intage
Market Research Company for 5 consecutive years, and won the title of BEST WORKSHOP ASIA 2020 - HR Asia
Awards.
- Management decided quickly to reduce operating costs without laying off employees. The temporary
solution is to structure the salary according to the actual workload and hours of operation. As a result, the
average salary cost in 2020 is reduced by 50% compared to the level of 2019, the lowest employee still ensures
a minimum salary of 10 million VND/month.
- Based on the transparent and effective implementation of the salary reduction program, most of the
employees are trying and optimistic about the future of Vietjet, resulting in 89% of employees wanting to stay
with Vietjet for a long time. In 2020, the employee turnover rate is only 10.82%, an increase of 0.12% compared
to the rate of 2019.
(Source https://ir.vietjetair.com/File_Upload/thong-tin-tai-chinh/bao-cao-thuong-nien-parent/bao-cao-thuong-
nien/VJA_AR%202020_FULL_CBTT.pdf )

- Vietjet always focuses on developing human resources, in which people are the key factors
accompanying the development and strength of the Company. With appropriate and constantly improved
remuneration policy, Viejtet has been creating a good, healthy and professional working environment for
employees as well as increasingly attracting high quality human resources in and foreign. Vietjet employees are
not only guaranteed basic benefits such as insurance, suitable holidays and annual leave, periodic salary
increases, KPI bonus review every 6 months, but also enjoy other policies showing the company's interest in
employees such as free airfare policy for employees and relatives (SFC program), networking and team building
activities...
- The percentage of foreign workers as of December 31, 2020 is 939 people, accounting for nearly 17% of
the total number of employees at Vietjet. Most of them are pilots, flight attendants and experienced experts in
various fields, working together, collaborating and learning in Vietjet's environment, creating diversity in terms
of nationality, culture, etc. At the same time, it is a human resource that is focused on developing in order to
share and develop knowledge, skills and experience, making a positive contribution to the company's rapid and
sustainable development.
- Evaluation and reward program: The evaluation of employees' contributions in order to timely reward,
motivate and increase employees' attachment to the Company, so the Company regularly evaluates and
rewards employees with outstanding contributions into the Company's business. In June 2020, the Human
Resources Department cooperated with a consultant from INNMA to organize an advanced training course
awareness of KPI and method of building KPI system for representatives of leaders of departments and
divisions throughout the Company.
- Education policy: In 2020, the Human Resources Division in conjunction with VJAA conducted 47,386
hours of training for employees of all departments, due to isolation, the Company arranged for employees to
attend online learning sessions, accounting for 31.7% and classroom training accounted for 68.3%.
2. Board of management:
- Financial situation: Vietjet always maintains a high liquidity level of over VND 2 trillion, ensuring the
Company's solvency for suppliers grant and partner.
- Vietjet's airline revenue and consolidated revenue in 2020 compared to 2019 decreased by 63% and
64%, respectively.

- The parent company's profit after tax lost VND 1,453 billion, but thanks to financial activities from
restructuring the portfolio, Vietjet has a consolidated profit after tax of VND 69 billion. This is a very important
indicator in the context that other airlines with huge operating losses are forced to restructure the company or
receive help from the Government to maintain continuous operations. In addition, this target helps Vietjet be
proactive in mobilizing capital in the credit and capital markets.

- In the context of shrinking business operations, Vietjet has made great efforts and succeeded in
generating revenue and cash to finance business operations at the optimal level without laying off employees
to wait for opportunities development in 2021. Besides, the 2020 payment coefficient of 1.28 times still
remains at a good level compared to previous years. This is a very important indicator for airlines during the
crisis period due to the Covid-19 pandemic.
- Total assets and equity increased steadily and steadily over the past 5 years, with the ratio of Liabilities
to Equity tended to decrease from 2.3 in 2016 to 2.0 in 2020 compared to the level If the industry average is 2.0
- 3.0, Vietjet's ability to mobilize credit capital still has many options. In 2020, after paying 9 leased aircraft, the
total liabilities of the Company also decreased sharply by VND 3,738 billion, equivalent to a decrease of 11% of
total liabilities. Revenue received in advance compared to liabilities as of December 31, 2020 decreased from
9.4% to 2.9% because customers tend to buy tickets when needed instead of paying in advance.
- Improvements in organizational structure, policies and management:

+ Information technology

+ Ground Service

+ Products and revenue

+ Cost savings

+ Maintain a high level of liquidity

+ Raise the sense of service quality employee's customers

- In 2020, Vietjet has implemented flexible and appropriate human resource policies to ensure
employment for more than 5,000 employees and maintain a stable employee turnover rate of 10.82% and is
recognized as one of the few Airlines in the world do not cut staff.

C. External Stakeholders:
- Suppliers: Some familiar suppliers of Vietjet Air in SLB deals are: GE Capital Aviation Services Limited,
Awas Aviation Trading Limited; Awas 7170 Ireland Limited; Avation PLC; Goshawk Aviation Limited; Goshawk
Management (Ireland) Limited; Jackson Square Aviation, LLC… aircraft sublease, Aviation gasoline suppliers.
- Society: However, when the COVID-19 pandemic broke out, the world economy had to suffer great
damage, with the first industry hardest hit was the air transport industry. According to the report of the
International Civil Aviation Organization (ICAO) on the situation of aviation activities in 2020, the number of
international and domestic passengers decreased by 1.38 billion and 1.32 billion respectively, down 74 % and
50% compared to 2019 and reduced revenue by 250 billion and 120 billion USD respectively. It is estimated that
Vietjet Air has a shortage of about 10,000 billion VND to support production and business activities.
- Government: The government provides low-interest financial support to the aviation industry. Tax cuts
and government fees to stimulate people's travel needs. The Ministry of Transport requires airline passengers
to have a negative Covid-19 test certificate and receive the required number of injections. Aviation enterprises
are allowed to operate unrestricted routes, gradually increasing the frequency of operation until they return to
normal operations when society reaches a new normal.
- Creditors: Vietjet's 2020 audit report shows that its short-term debt reached nearly VND 10,100 billion,
an increase of more than VND 1,900 billion in the past year. In contrast, long-term debt decreased sharply by
more than 2,300 billion dong to 1,347 billion dong. This movement was mainly due to the fact that long-term
loans were due, so they were recorded as short-term debts. Details of short-term loans, the largest creditor is
VietinBank with a balance of 1,973 billion dong, followed by HDBank with 1,922 billion dong and MB lending
1,080 billion dong. The largest creditors for long-term loans are Woori Bank with VND 1,045 billion and
Industrial and Commercial Bank of China (ICBC) with VND 1,045 billion. In addition, MB has a loan of VND 506
billion and KEB Hana has a loan balance of VND 464 billion.
(Source: https://vietnamnet.vn/vn/kinh-doanh/tai-chinh/ngan-hang-nao-cho-cac-hang-hang-khong-vay-nhieu-
nhat-747324.html )

- Shareholders: In 2020, the Board of Management has flexibly used its own resources from investment
assets accumulated many years ago for long-term development purposes such as the right to operate the
Vietjet Plaza building, grants, etc. from manufacturers of aircraft, engines, etc. to ensure that the Company's
liquidity and financial structure in 2020 will not change significantly compared to 2019.

- Customers: Continuously innovating to make a difference in the quality of products and services
provided to customers, Vietjet has succeeded in building a new generation airline model with low cost but high
service quality outstanding services that meet the 4.0 technology platform and serve the diverse needs of
different customers.
 D. Mission:
1. Exploiting and developing a wide network of domestic, regional and international routes. Bringing a
breakthrough in air services.
2. Make air service a popular means of transportation in Vietnam and internationally.
3. Bringing joy and satisfaction to customers with outstanding, luxurious service and friendly smiles.

E. Vision: To become a multinational airline corporation, with a wide network of flights throughout the
region and the world, developing not only aviation services but also providing consumer goods on an e-
commerce platform, a brand that is loved by customers love and trust.

F. Objectives:
1. Economic:
- Vietjet will develop effective business strategies to increase revenue, including:

+ Increase passenger transport

+ Promote freight transport.

+ Carry out aircraft purchase and sale transactions.

- Vietjet will actively create and establish diversified financial mobilization channels suitable to the
company's financial structure to ensure the most reasonable cost of capital; maintain multilateral relationships
with financial institutions to ensure competitiveness and governance risk management.
- Vietjet deploys investment activities in domestic and foreign aviation field. Specifically, for aviation
infrastructure, Vietjet will participate in investing in terminals at airports with high passenger traffic. The airline
will focus on promoting freight services or commercial services at Vietjet Thailand; increase the investment rate
in Vietjet Thailand.
- Make the most of Government support: policies on epidemic prevention, financial support for people
and businesses, and policies to reduce taxes and fees, etc.
2. Social:
- Company's sustainable development strategy and policy:

+ Investing and implementing sustainable development programs: saving fuel, energy, reducing CO2 emissions
and green development.

+ Commitment to comply with legal regulations on environmental protection in the countries where Vietjet
operates; support and actively participate in environmental protection initiatives and programs of international
organizations.

+ Research and development of projects and initiatives for environmental protection and sustainable social
development.

+ Share Vietjet's success to the community through charity programs, educational sponsorship programs for
disadvantaged students and scholarship funds for excellent students.

- Committed to strictly complying with the regulations of the Ministry of Transport, the Civil Aviation
Administration and the International Air Transport Association in the operation, maintenance, train as well as
ensuring flight safety for passengers, employees and the community during the recent pandemic.

G. Meets the needs and interests of stakeholders

1. For customers: focusing on promoting digital transformation throughout the system, creating favorable
conditions for customers to buy tickets and Vietjet's services. Improve customer service through system utilities
in handling complaints and responding to customer inquiries with artificial intelligence applications,
implementing loyalty programs, and generating additional prices added value.
2. For Pilots, flight attendants, equipment assembly workers, etc.: Do not lay off employees and maintain
work allocation. Create conditions for employees to develop themselves and improve their qualifications.
3. For creditors: Paying short-term and long-term loans on time and always keeping the loan amount at
the allowable level.
4. For society: Continuing the values that Vietjet has brought to the community, Vietjet has carried out
many charity activities through flights to rescue compatriots, relief flights to people affected by storms and
floods, and giving gifts to families in need disadvantaged…
5. For managers, shareholders: Bringing profits, success, reputation and prestige because Vietjet's success
stems from the wise decisions of the Board of Directors in quickly changing business strategies in line with the
epidemic situation; from the drastic and close direction of the Executive Board; from the execution with great
efforts of all employees and the support and trust of shareholders and investors.