The private sector can take over the rights to operate and manage (O&M) Phu Quoc International Airport on the resort island of the same name and a domestic terminal at Noi Bai International Airport in Hanoi.

The Ministry of Transport decided at a meeting last week to choose an investment format for the first such transfers of the airport facilities in the country.

Although a specific plan to sell the rights to run Phu Quoc airport off mainland Kien Giang Province and terminal T1 at Noi Bai is still under discussion, the transfers will be undertaken in line with Government Decree 15 on public-private partnership (PPP).

In particular, the State will sign O&M contracts with private investors to operate and manage part or all of the facilities for a fixed period of time.

The ministry has assigned Airports Corporation of Vietnam (ACV) to draw up a financial plan for the transfers, employ an independent consultant to check and assess the properties, and determine revenue, profit, and time of transfer within this month so that the ministry can report to the Government for approval.

Earlier, T&T Group had written to the ministry proposing buying Phu Quoc airport, saying it would establish a unit to operate the airport if approved.

Following T&T’s proposal, the ministry asked the Government to allow firms without previous experience in airport operations to engage in airport business but they must sign airport operation contracts with experienced entities in the sector.

The ministry once considered allowing ACV to establish a joint stock company to manage Phu Quoc airport and then sell shares of this firm to private investors. However, the ministry found out Phu Quoc airport was attractive to investors, hence the decision to transfer it under the M&O format.

Vietnam Airlines and VietjetAir have also bid for terminal T1.