Infrastructure underdevelopment hinders Vietnam's aviation industry

Twenty two airports in Vietnam have the capacity equal to one airport in Thailand or Singapore. The overloaded infrastructure is affecting the aviation and tourism industries.

General director of the Vietnam National Administration of Tourism (VNAT) Nguyen Trung Khanh said 80 percent of travelers go by air, and air transport helped Vietnam’s tourism obtain the double growth rate in 2015-2018 and the 15 percent growth rate in the first 11 months of the year compared with the same period last year.

Infrastructure underdevelopment hinders Vietnam's aviation industry

Vo Huy Cuong, deputy head of CAAV



However, Khanh pointed out a big problem that the key markets such as Hanoi, HCM City and Nha Trang have become overloaded which sometimes cannot satisfy the demand.

Sharing the same view, Luong Hoai Nam, an aviation expert, said ‘the infrastructure problem is obvious’.

He said Vietnam has 22 airports and the total capacity of the 22 airports is just equal to one airport – Changi in Singapore, Suvarnabhumi in Bangkok, or Kuala Lumpur in Malaysia.

Vo Huy Cuong, deputy head of CAAV, said the traffic often gets stuck not only at airports, but also on the roads to the airports, especially Tan Son Nhat. Therefore, developing and expanding satellite airports is a necessity.

However, in current conditions, it is difficult to call for investment because of legal problems.

Twenty two airports in Vietnam have the capacity equal to one airport in Thailand or Singapore. The overloaded infrastructure is affecting the aviation and tourism industries.
 

“There must be a synchronous policy to remove the bottlenecks in the aviation sector. If the problems cannot be settled, the problem would be even more serious in the next years, which would not only affect aviation, but also the tourism industry,” Cuong said.


About solutions to the problem, Stefano Bortoli, CEO of ATR, said it would be better to optimize the capacity of small airports by using small ATR airplanes, which saves fuel and doesn’t require big investments.

Advocating this approach, Cuong said Vietnam needs to make the most efficient use of its existing infrastructure. Four international airports have shown signs of overloading, of which Tan Son Nhat has become overloaded.

“As it is difficult to fly to Cam Ranh, Chinese and Russian airlines have begun flying to Phu Quoc, Da Lat and Quy Nhon. This is good news,” Cuong said, adding that travel firms should drive visitors to new destination points.

Experts also said that the aviation and tourism sectors should join forces with each other to better exploit the airports with night lights such as Dong Hoi, Phu Bai and Van Don. These are airports which can receive ATR, A320 and 321s.

Meanwhile, Chu Viet Cuong from Vietjet Air suggested that the government should call for private investments for infrastructure development.

“It would be better not to wait for the state’s capital but allow private investors and foreign investment funds to develop infrastructure. This will help settle the existing problem,” he said.

Kim Chi 

Vietnam’s airlines to buy more aircraft to expand fleets

Vietnam’s airlines to buy more aircraft to expand fleets

The airlines are focusing on developing fleets with narrow-body aircraft to increase efficiency in the context of fierce competition.

Vietnam’s airlines transport nearly 55 million passengers this year

Vietnam’s airlines transport nearly 55 million passengers this year

Vietnam’s airlines have so far this year transported 54.7 million passengers and 435,000 tonnes of cargo, respectively 11.4 percent and 7.6 percent higher than the figures last year.

 
 

Other News

.
Ministry leaders discuss action plan to implement EVFTA
Ministry leaders discuss action plan to implement EVFTA
BUSINESSicon  07/08/2020 

Vietnamese enterprises have been urged to renovate their business strategies if they want to benefit from the EU-Viet Nam Free Trade Agreement (EVFTA), 

Top 10 most valuable brands worth US$8.1 billion
Top 10 most valuable brands worth US$8.1 billion
BUSINESSicon  07/08/2020 

The top 10 most valuable brands in Viet Nam 2020 are worth US$8.1 billion, increasing by 17 per cent from last year and accounting for 30 per cent of the list’s total value, according to Forbes Viet Nam magazine.

ASEAN’s investment contributes significantlly to Vietnam’s economic development
ASEAN’s investment contributes significantlly to Vietnam’s economic development
BUSINESSicon  07/08/2020 

Since Vietnam joined ASEAN (July 28, 1995) and committed to the implementation of the ASEAN Free Trade Agreement (AFTA) in 1996, ASEAN's direct investment has contributed significantly to Vietnam’s economic development .

Vietnam Airlines plans to sell nine planes due to financial woes
Vietnam Airlines plans to sell nine planes due to financial woes
BUSINESSicon  06/08/2020 

Vietnam Airlines is planning to sell nine A321CEO planes to optimize its fleet and improve its cash flow, as the national flag carrier’s revenue has dropped sharply due to the Covid-19 pandemic.

Vietnam – one of the best long-term growth stories in Asia
Vietnam – one of the best long-term growth stories in Asia
BUSINESSicon  07/08/2020 

Vietnam is one of the best long-term growth stories in Asia and is one of the most preferred frontier markets, according to HSBC.

Maximum $130,700 fine for listing violations: Draft decree
Maximum $130,700 fine for listing violations: Draft decree
BUSINESSicon  06/08/2020 

Public companies may receive a penalty of VND2-3 billion ($87,120-$130,700) for falsifying share listing and trading documents under a proposal from the Ministry of Finance.

Singaporean business surges ahead
Singaporean business surges ahead
BUSINESSicon  07/08/2020 

Singaporean business and investment in Vietnam has increased significantly over the decades, thus greatly contributing to strengthening economic bilateral ties.

Furthering developmental ties with dynamic Singapore
Furthering developmental ties with dynamic Singapore
BUSINESSicon  06/08/2020 

Vietnam and Singapore are witnessing their heyday in bilateral and multifaceted cooperation.

Wide impacts to be made with new law changes
Wide impacts to be made with new law changes
BUSINESSicon  06/08/2020 

Effective in 2021, the amended laws on Enterprises, Investment, and Public-Private Partnership are expected to entail breakthrough changes to Vietnam’s business and investment landscape in the coming time, 

Decisive actions to achieve goals
Decisive actions to achieve goals
BUSINESSicon  06/08/2020 

The Ministry of Planning and Investment is currently working on possible scenarios for the upcoming period amid the ongoing developments of the global health crisis.

Millenium to develop $15 billion LNG project in Khanh Hoa
Millenium to develop $15 billion LNG project in Khanh Hoa
BUSINESSicon  06/08/2020 

If the $15 billion LNG project of Millenium Group is approved, it will contribute to making the Nam Van Phong area the largest LNG centre in Southeast Asia.

Rebound likely despite bumpy roads
Rebound likely despite bumpy roads
BUSINESSicon  06/08/2020 

Despite a serious dip in local production caused by the health crisis, Vietnam is expected to be one of the fastest-growing nations worldwide this year, with the economy forecast to stay among the few nations with positive growth.

Unique advantages can pull Vietnam out of uncertainty
Unique advantages can pull Vietnam out of uncertainty
BUSINESSicon  06/08/2020 

In life, economic and health gains are not always equal. This is true for individuals and for countries. While Vietnam has managed to contain the pandemic so far, its economy has been hurt in recent months. 

Hanoi’s Old Quarter businesses bear brunt of COVID-19 impact
Hanoi’s Old Quarter businesses bear brunt of COVID-19 impact
BUSINESSicon  06/08/2020 

The second wave of the COVID-19 epidemic to hit Vietnam has continued to deal a devastating blow to small businesses, travel agencies, and tourist accommodations in the Old Quarter of Hanoi due to the suspension of operations.

Container handling charge increases proposed to attract investment in seaports
Container handling charge increases proposed to attract investment in seaports
BUSINESSicon  06/08/2020 

Container loading and unloading service charges should be increased to approach the regional level so investors would not feel hesitant when pouring money into developing seaports.

Policies encourage automakers to assemble cars in Vietnam
Policies encourage automakers to assemble cars in Vietnam
BUSINESSicon  06/08/2020 

 Several automakers are considering assembling their best-selling models in Viet Nam due to the Government’s policy of zero import tariffs on components and a 50 per cent reduction in registration fees.

Thai firms acquire wind power farm in Ninh Thuan
Thai firms acquire wind power farm in Ninh Thuan
BUSINESSicon  06/08/2020 

Thailand’s Banpu and its power business arm Banpu Power (BPP) have joined forces to acquire El Wind Mui Dinh, an onshore wind farm in the south-central province of Ninh Thuan, in a deal worth $66 million.

EVFTA smooths the way for Vietnamese farm produce
EVFTA smooths the way for Vietnamese farm produce
BUSINESSicon  06/08/2020 

The EU-Vietnam Free Trade Agreement, at its core, aims to liberalise both tariff and non-tariff barriers on key exports of both sides over a period of 10 years.

Mountainous areas and islands need investment
Mountainous areas and islands need investment
BUSINESSicon  07/08/2020 

PhD Doctor Le Quoc Phuong, former deputy director for the Information Centre for Industry and Trade, under the Ministry of Trade, talks on key requirements in trade development in mountainous areas and islands.

Vietnam receives positive view in global exports as EVFTA takes effect: report
Vietnam receives positive view in global exports as EVFTA takes effect: report
BUSINESSicon  05/08/2020 

Vietnam is expected to continue growing its share of global exports despite decline amid the resurgence in the COVID-19 pandemic after three months of no local transmissions, according to an HSBC report.

 
 
 
Leave your comment on an article

OR QUICK LOGIN