Vietnamese Tiếng Việt | Sunday, March 24, 2019 | Advertise with Us
Text Size

Private capital to flow into aviation infrastructure projects

(0 votes, average 0 out of 5)

Many private investors are willing to pour money into aviation infrastructure, though the business field requires huge capital and a long time to recover capital.

vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking news, Bamboo Airways, FLC, CAAV

Vietnam will become the fifth fastest growing aviation market


According to IATA (The International Air Transport Association), Vietnam will become the fifth fastest-growing aviation market in terms of international passengers and cargo to be transported. With a population of approximately 100 million, the domestic aviation market will witness average growth rate of 15 percent in the time to come.

Economists say Vietnam needs 10 air carriers to satisfy demand and create a healthy market. 

Meanwhile, Vietnam’s aviation infrastructure is getting overloaded and the presence of new airlines will put pressure on airport infrastructure. 

According to Airports Corporation of Vietnam (ACV), the airports of Noi Bai in Hanoi, Tan Son Nhat in HCMC, Cam Ranh in Khanh Hoa, Cat Bi in Hai Phong, Phu Quoc in Kien Giang and Lien Khuong in Lam Dong are all running beyond the designed capacity.

If Vietnam cannot solve the problems related to infrastructure, the aviation industry will not be able to develop.

Vietnam now has 21 airports with total capacity of 70 million passengers a year. The figure is just equal to the capacity of KLIA 1 and KLIA 2 in Malaysia in total (75 million passengers) and a little bit higher than Changi in Singapore (50 million passengers).

Foreign travelers complain they have to take two flights to get to Quy Nhon, Quang Ninh, Quang Binh, Thanh Hoa and Phu Quoc. They have to fly to Hanoi and HCMC and then wait hours for the next flights to the destination.

To satisfy high travel demand, Vietnam plans to have 26 airports by 2020 with total investment capital of $10.5 billion. It is now implementing 11 projects, of which seven will be completed in the next three years. 

Analysts believe that as the state’s resources remain limited, private investment is a good solution.

According to CAAV (Civil Aviation Authority of Vietnam), there are five airport projects with capital contribution from private investors now under implementation. 

These include the Van Don International Airport, the terminal for international travelers of Cam Ranh Airport, and Phan Thiet, Cat Bi and Chu Lai Airports.

Van Don is the first privately invested airport in Vietnam. The other 21 operating airports are under ACV’s management.

Tran Dinh Thien, head of the Vietnam Economics Institute, praised the effectiveness of private investment in the field. 

IPP, a private investor, initially planned to build Cam Ranh Airport within 36 months, but it needed only two-thirds of that time to finish construction.



Source: VietNamNet

Maybe You Also Interesting :

» Vietnam’s airlines making hectic preparations to fly to US

Soon after the US officially granted non-stop flight permission to Vietnam, domestic airlines set to work to prepare to fly to the US.

» FLC Group to launch six projects in Hải Phòng

Property developer FLC Group has proposed six new projects in the northern port city of Hải Phòng.

» Property group FLC to launch three projects in Hà Giang

Property developer FLC Group has proposed launching three investment projects in the northernmost province of Hà Giang, according to Vice Chairman of its...