Vietnam’s aviation industry will need US$23.5-24.2 billion from the private sector by 2030 for its development, Pham Doan Hong, vice chairman of the Vietnam Association of Aviation Science and Technology, told a conference in HCM City on November 26.
Vietnam International Aviation Expo 2019 is held on November 26-28 by the Vietnam Association of Aviation Science and Technology and GK Wintron Co.Ltd in HCM City.
Between 2015 and 2020, the industry needed almost $10 billion for developing terminals, airports and other infrastructure, he said.
While many legal regulations related to private investment had been passed, they had failed to meet private investors’ demands, he said.
The Government should amend many provisions in the laws to remove the hurdles to attracting the private sector, he said.
“Investment from the private sector in civil aviation is a common trend around the world.”
Prof Dr Do Nguyen Khoat, the association’s vice chairman, said the industry needed to be developed to meet travel needs and the country’s economic development.
According to a forecast by the International Air Transport Association, Vietnam will become the fifth fastest growing aviation market in the world by 2035 when it will transport 150 million passengers.
Domestic aviation is forecast to grow at an average of 15 per cent a year over the next several years.
The Ministry of Transport expects the country to have 28 airports, including 13 international ones, by 2030, which will attract large investments in infrastructure.
Joshua Ng, director of Alton Aviation Consultancy's Singapore Office said Vietnam would have the highest GDP per capita growth and the second highest GDP growth among ASEAN member countries in the 2019-2024 period.
It led in middle-class disposable income growth now, he said.
It was improving its tourism appeal, especially in fast growing and important markets such as China and the Republic of Korea, he said.
“Vietnam’s air passenger and freight traffic volumes are set to double within the next decade.”
The country was investing heavily to improve airport capacities across the country in the next 10 years, he said.
The country had an aircraft fleet of 190 to 210 not including Bamboo Airways and Vinpearl Air, he said.
Hong warned that airlines should not get into a race to buying aeroplanes because of the country’s limited flying space.
Not much attention is being paid to air traffic, he warned further.
The Government needed to make a careful forecast of the development of the entire industry, he added.
Dr Tran Quang Chau, the association chairman, said the aviation sector should take advantage of industry 4.0 to make exact forecasts, reform freight management and make plans for airports.
The conference was held as a part of the 2019 Vietnam International Aviation Expo organised by the association and GK Wintron Co.Ltd. It closes on November 28. VNS
The potential in Vietnam’s aviation industry in the next five years will be a heavy incentive for foreign businesses to invest and seek co-operation.
With new foreign airlines setting up air routes to Vietnam and existing airlines increasing flight frequency, the Vietnamese aviation sector is becoming extremely busy.