Vietnam would be the fifth fastest-growing aviation market in the world

Domestic air carriers have expanded their air routes and increased the flight frequency with 52 routes between Hanoi, Da Nang, HCMC and 18 local airports.

The sharp increase in the number of air passengers is explained by the increasing popularity of budget airlines. The airfares for domestic flights cost about the same as  train tickets, while the time to travel by air is just equal to 1/15 and 1/20 of the time to travel by train. 

One report shows that the number of passengers traveling by air increased from 0.5 percent of total population in 2012 to 0.8 percent by the end of June 2016.

As for international flights, 63 foreign airlines from 25 countries and territories are exploiting 105 international air routes, while there were 78 air routes in 2016.

The number of foreign tourists coming to Vietnam by air has also bounced back. The General Statistics Office (GSO) said more than 8 million foreign travelers flew to Vietnam in the first nine months of 2017, a 31 percent growth rate compared with the same period last year, accounting for 80 percent of foreign travelers.

Vietnam strives to receive 13 million foreign tourists this year, including 11 million travelers coming by air.

The International Air Transport Association (IATA) predicted Vietnam would be the fifth fastest-growing aviation market in the world and the fastest-growing market in South East Asia in the next five years. The industry expects average growth rate of 14 percent with 150 million passengers to be carried by 2035.

The rapid development of the aviation market promises a bright future for related business fields. Air & airport services and duty-free shops are expected to benefit most from the development.

An analyst said now was a ‘golden time’ for businesses to list shares, either on the official bourses or UpCom, to increase their market value. Vietnam Airlines, Vietjet, Noi Bai Catering Services, Sai Gon Ground Services, Northern Airport Services, Middle Airports Services and Southern Airports Services are some of them. 

Taseco Airs recently drew special attention from investors when announcing a plan to list shares on the HCMC bourse by the end of this year.

For many years, the air catering market has been controlled by subsidiaries of Vietnam Airlines, namely Noi Bai Catering (NCS), which provides meals at Noi Bai Airport in Hanoi, Masco at Da Nang, and Cam Ranh Airports and VACS at Tan Son Nhat in HCM City. 

In 2016, Masco and NCS reported growth rates of 29 percent and 14 percent, respectively.

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Thanh Mai