Vietravel Airlines and Asean Cargo Gateway (ACG) have announced their investment cooperation with a 51-49 percent capital contribution rate, a part of Vietravel Corporation’s plan to diversify its ecosystem.

With the cooperation, the two companies want to promote cargo business, develop air cargo transport, and act as an agent for airlines in the region.

According to Vietravel Airlines’ CEO Vu Duc Bien, the air cargo market still has great potential. The concern about supply chain disruption is increasingly high, while the cargo markets between Vietnam and China, Southeast Asian, Northeast Asia, Europe and the Americas are believed to have the highest annual growth rates and a high percentage working age population. Production bases are being relocated to the region, next to the world’s largest production base, China.

Vietnam is considered a potential candidate in this production shift. It is also a great opportunity for the logistics industry and air cargo transport.

“It is now the time to promote the first air freight segment in Vietnam,” Bien said.

A representative of ACG said developing the logistics industry domestically and internationally, will bring Vietnam’s businesses closer to foreign markets. The cooperation will turn Cargo Airlines in Vietnam into reality and promote competitiveness in international connection for export products, especially farm produce.

It is expected that in the first year, the company will focus on carrying cargo between Vietnam and large production bases in Asia, such as China, Malaysia, Indonesia, and Thailand with a fleet of B737-800F for cargo (2-4 aircraft are expected in the first year and the number will double in the next year).

Prior to that, IPP Air Cargo, a subsidiary of IPPG owned by Johnathan Hanh Nguyen announced it had completed procedures to lease four Boeings’ B737 800BCFs.

With the leasing contract, one aircraft will be ready on July 25, while the other two will be delivered in December 2022 and the fourth in February 2023.

In 2024-2025, the company plans to order 10 wide-body B777 Freighters with total value of $3.5 billion. It has also obtained an import license.

It is expected that the carrier’s domestic network will begin from production bases such as Can Tho, Da Nang, Khanh Hoa, Central Highlands, Hai Phong and Quang Ninh, to cargo transshipment centers in Hanoi and HCM City so as to make international connections with Northeast Asia, Southeast Asia, South Asia and Europe.

Tran Chung