AirAsia Group has pulled out of its proposed Vietnam joint venture.
The three-way JV has been terminated amicably, AirAsia said in a filing with Bursa Malaysia.
AirAsia had agreed to set up an airline business in Vietnam with Gumin Company Ltd and Hai Au Aviation Joint Stock Company.
It gave no reason for scrapping the JV.
It first mooted the idea of setting up a Vietnam based low cost airline back in 2017 and signed a memorandum of cooperation last year.
"The termination of the joint venture is not subject to the approval of the company’s shareholders and is not expected to have any financial impact on the net assets or gearing of the company," AirAsia said.
The company says it is still bullish on the Vietnam market and remains interested in operating a low-cost airline unit there.
It is another blow to its expansion plans following the termination of a China joint venture recently.
Vietnam is one of the world’s fastest growing aviation markets but competition is hotting up.
Budget airline Vietjet and Vietnam Airlines are the two dominant players while new startup Bamboo Airways launched services earlier this year.
