Overloaded infrastructure hinders development of Vietnamese aviation industry

The combined capacity of the 22 airports in Vietnam is just equal to that of one single airport like Changi in Singapore, Suvarnabhumi in Thailand or KLIA in Malaysia.

Overloaded infrastructure hinders development of Vietnamese aviation industry

At the panel on the aviation industry in Vietnam under the framework of the Vietnam Travel & Tourism Summit in Hanoi on Monday, many experts and authorities in the fields mentioned the overload of infrastructure as the main bottleneck to the development of the industry.

As many as 80% of international tourists traveled to Vietnam by air, showing the vital role of aviation in contributing to doubling the growth rate of Vietnamese tourism industry between 2015 and 2018.

However, as visitors mainly chose Hanoi, Ho Chi Minh City, Nha Trang as their favorite destinations, shortcomings preventing this cities from handling such a large influx of tourists have been revealed.

The combined capacity of the 22 airports in Vietnam is just equal to that of one single airport of the kind of Changi in Singapore, Suvarnabhumi in Thailand or KLIA in Malaysia.

As a result, developing and broadening satellite airports system is essential. However, due to the flawed policies, the projects have not drawn the interest of domestic and foreign enterprises yet.

Vo Huy Cuong, deputy head of the Civil Aviation Authority of Viet Nam, (CAAV) stressed that Vietnam needs to synchronize its policies to untie the knots in infrastructure development as it is foreseeable that the airport system will be more clogged in the future, affecting not only the aviation but also the tourism industry.

 

The number of airline seats on the Hanoi – Ho Chi Minh route offered by Vietnam Airlines ranks second in the world with 210,000, making major airports such as Tan San Nhat overcrowded, affecting aviation service quality, flight safety and altering flight plans of air carriers.

A representative of the Ministry of Planning and Investment said aviation planning has been disrupted due to improper policies. He proposed some solutions including improving the quality of planning, at the same time, enhancing the harmonization in planning of roads, highways, railways, and airports.

Also at the panel, experts and authorities proposed ways to clear some obstacles for private resources to be poured into aviation infrastructure such as shortage of qualified aviation personnel, backward mechanism of ceiling rates for airfares, and whether to include or not the air transport business license in the Investment Law. Hanoitimes 

Ngoc Thuy

Foreign investors grasp more control overn Vietnam’s aviation market

Foreign investors grasp more control overn Vietnam’s aviation market

Experts believed that the government’s decision on increasing foreign holding will be a springboard for foreign investors to penetrate into the Vietnamese burgeoning market.

Aviation service market promising

Aviation service market promising

The number of aircraft in Vietnam and Asia Pacific is expected to double in the next 20 years, increasing demand for aviation services.

 
 

Other News

.
Six cities and provinces to pioneer in use of e-invoices
Six cities and provinces to pioneer in use of e-invoices
BUSINESSicon  16/07/2021 

The General Department of Taxation plans to launch the electronic invoice system at tax departments in Ha Noi, HCM City, Quang Ninh, Hai Phong, Phu Tho and Binh Dinh by the end of this year before rolling it out nationwide in 2022.

New money into stock market slows down, economy growth may miss expectations
New money into stock market slows down, economy growth may miss expectations
BUSINESSicon  16/07/2021 

In its recent report, Dragon Capital said that the market uptrend is still led by new individual investors.

Vietnam set to reach mobile wallet penetration of nearly 55 per cent by 2025
Vietnam set to reach mobile wallet penetration of nearly 55 per cent by 2025
BUSINESSicon  16/07/2021 

Vietnam is set to see rapid expansion in terms of mobile wallet usage with mobile wallet penetration to reach nearly 55 per cent by 2025.

Foreign retailers come, Vietnamese billionaires struggle to survive
Foreign retailers come, Vietnamese billionaires struggle to survive
FEATUREicon  16/07/2021 

The increasing presence of foreign giants has put great pressure on domestic retailers.

Opening the economy again step by step
Opening the economy again step by step
FEATUREicon  16/07/2021 

Economists have urged the gradual reopening of the economy. VietNamNet talked to Dr Nguyen Duc Kien about the issue.

HCM City applies ‘production-and-quarantine’ model
HCM City applies ‘production-and-quarantine’ model
FEATUREicon  16/07/2021 

Many enterprises in HCM City are operating under a so-called production-and-quarantine model, i.e. maintaining production while strictly following quarantine rules amid the Covid-19 outbreak.

How to harmonize the two 'fronts'?
How to harmonize the two 'fronts'?
FEATUREicon  15/07/2021 

There must be satisfactory solutions for the sake of the economy and the country's reputation in international relations because the pressure to open up, for example, through accepting vaccine passports, is great.

Vietnam Airlines to raise over $346 million through share issuance
Vietnam Airlines to raise over $346 million through share issuance
BUSINESSicon  15/07/2021 

At the General Meeting of shareholders held on Wednesday morning, Vietnam Airlines JSC (HVN) approved a plan of raising VND8 trillion (US$346.2 million) through share issuance. 

Two updated scenarios put forward for Vietnamese economy until year’s end
Two updated scenarios put forward for Vietnamese economy until year’s end
BUSINESSicon  15/07/2021 

The Central Institute for Economic Management (CIEM) has revised two scenarios for the Vietnamese economy by the end of the year, with the GDP rate forecast to expand by 5.9% and 6.2%, respectively.

Businesses strive to maintain production amid lockdown in HCM City
Businesses strive to maintain production amid lockdown in HCM City
BUSINESSicon  15/07/2021 

When HCM City went into lockdown under Government Directive 16 on July 9, many businesses and manufacturers prepared plans to set up temporary accommodations for their workers to avoid the spread of coronavirus and maintain production.

Borrowing US$5 billion to invest in stocks: worries behind the record
Borrowing US$5 billion to invest in stocks: worries behind the record
FEATUREicon  15/07/2021 

The number of newly-opened securities accounts opened in the last 18 months is equal to the total number of the previous 20 years.

VIETNAM BUSINESS NEWS JULY 15
VIETNAM BUSINESS NEWS JULY 15
BUSINESSicon  15/07/2021 

The State Bank of Vietnam set the daily reference exchange rate at 23,203 VND per USD on July 15, down 1 VND from the previous day.

VN stock market hits record, big names rise
VN stock market hits record, big names rise
FEATUREicon  14/07/2021 

The Vietnamese stock market in the first half (H1) of 2021 broke many records.

Aviation sector eyes recovery in 2023-24
Aviation sector eyes recovery in 2023-24
BUSINESSicon  14/07/2021 

Vietnam's aviation market is hoped to recover in 2023-24, according to a Vietnam Airlines' representative.

Businesses ask banks to ease interest rates as promised
Businesses ask banks to ease interest rates as promised
FEATUREicon  15/07/2021 

Bank loan interest rates are becoming a heavy burden on businesses, which have been hit hard by Covid-19 for more than a year.

Exporters face slew of difficulties due to COVID
Exporters face slew of difficulties due to COVID
BUSINESSicon  14/07/2021 

Though exports remain strong, several sectors face difficulties due to the COVID-19 pandemic and require support from the Government if they are to sustain the growth, experts said.

Ministry proposes reduction in insurance deposits for travel firms
Ministry proposes reduction in insurance deposits for travel firms
BUSINESSicon  14/07/2021 

The Ministry of Culture, Sports and Tourism wants to reduce the value of insurance deposits by 80 per cent to help travel companies that are struggling because of COVID-19.

Mekong Delta: attractive destination for renewable energy development
Mekong Delta: attractive destination for renewable energy development
BUSINESSicon  14/07/2021 

Taking advantage of its natural conditions and investment attraction policies, the Cuu Long (Mekong) Delta has become a destination for investors in renewable energy projects.

Vaccine passport: certificate could save the tourism industry
Vaccine passport: certificate could save the tourism industry
FEATUREicon  14/07/2021 

The Covid-19 outbreaks have hit the tourism industry especially hard. Travel firms are looking forward to the new vaccine passport, which they believe could save the industry.

Banks agree to reduce lending interest rates from July
Banks agree to reduce lending interest rates from July
BUSINESSicon  14/07/2021 

Commercial banks have agreed to slash the lending interest rate in order to help businesses and people overcome the difficulties caused by the Covid-19 crisis.

 
 
 
Leave your comment on an article

OR QUICK LOGIN