Vietnam's aviation industry expands market to maintain growth

The novel coronavirus epidemic has affected the socio-economic development of Vietnam, including the transport sector.

Minister of Transport Nguyen Van The speaks to Vietnam News Agency about solutions to control the epidemic and promote business activities of the industry to compensate for losses.

Vietnam's aviation industry expands market to maintain growth
Minister of Transport Nguyen Van The.


Which field of the transport sector has faced the greatest impact from the epidemic?

The aviation industry has suffered the greatest impact from the coronavirus epidemic, while the ministry has not seen much effect on road transport between Vietnam and China, or rail transport.

In 2019, the number of passengers travelling between Vietnam and mainland China by air was more than six million, accounting for 5 per cent of the total passengers passing through airports in Vietnam last year.

The coronavirus epidemic is directly affecting flights between Vietnam and China, and it is hard to calculate losses.

However, air transport between Vietnam and other countries has been maintained. Therefore, the ministry has promoted passenger and cargo transportation to other markets, such as Korea, Japan, Australia and Taiwan, to compensate for the losses.

The ministry is also focused on expanding to new markets, such as India. India is a potential market for Vietnam’s aviation sector, and it has not yet been developed.

During Vice President Dang Thi Ngoc Thinh’s visit to India from February 11-13, Vietnam launched three new routes between Vietnam and India, with direct flights from Hanoi, Da Nang and HCM City.

The ministry has encouraged local airlines to increase domestic flights because in the past, they have given a lot of priority to explore international routes, including China.

The increase in domestic flights will facilitate air transport for local passengers and connection among domestic tourist destinations.

However, the sector hopes flights between Vietnam and China to recover in the near future.

For road and rail transport, the ministry would further develop the domestic market and expand to ASEAN countries via Thailand because many countries have restricted transport of passengers and cargo via China during the epidemic.

 

At present, Vietnam has maintained freight transport by rail through China for import and export activities. Therefore, the ministry has directed the railway industry to control the epidemic on its transport system.

What does the Ministry of Transport propose the Government do to help the sector during the epidemic?

The ministry’s current solution is to encourage road and rail transport companies to save fuel and adjust routes to improve efficiency.

Meanwhile, the ministry has received proposals from airlines to help them deal with difficulties, including increasing fares. But the ministry is likely not to submit this proposal to the Government, because the epidemic is expected to reduce profits by about 5-7 per cent and with this percentage, the ministry believes that airlines will still make a profit.

The State will give support to airlines that face losses. If the companies are still profitable while this epidemic affects the economy and society, then they should share the burden.

The airlines have also proposed to increase service fees and the ministry disagrees with this proposal. As passenger numbers have fallen, the airlines can reduce flights, thereby cutting operating costs.

When the companies prove their business activities are in trouble or suffer losses, the ministry will consider those cases for Governmental support.

What has the ministry done to prevent and control this epidemic in the transport sector?

The ministry has closely followed the direction of the Government in the prevention of the coronavirus epidemic. It has established a steering committee on prevention and control led by a deputy minister of transport and also requested transport sectors such as aviation, railway and road to have specific solutions on control of the epidemic.

At present, the ministry continues to carry out the directions of the National Steering Committee for epidemic prevention and control. It will strengthen control in aviation, railway, road and marine transport. It will also promote control of exported goods across the border. — VNS

Coronavirus causes transport companies losses

Coronavirus causes transport companies losses

Transport companies have been hit hard by the novel coronavirus (COVID-19).

VN seaport enterprises to taste the heat of novel coronavirus in Q1

VN seaport enterprises to taste the heat of novel coronavirus in Q1

The novel coronavirus has caused problems to most of the roadway logistics firms, however at sea it is having a mixed affect.  

HCM City locals find ways to enjoy life during novel coronavirus outbreak

HCM City locals find ways to enjoy life during novel coronavirus outbreak

HCM City residents' fear of the coronavirus has led to a relatively empty HCM City, a normally vibrant city with many interesting entertainment activities.  

 
 

Other News

.
Covid-19 crisis leads to opportunity to expand markets
Covid-19 crisis leads to opportunity to expand markets
BUSINESSicon  27/03/2020 

2020 is a special year for Vietnam because of the 4.0 industry revolution and Covid-19 outbreak.

Securities service fees cut does help, but more drastic measures in need: experts
Securities service fees cut does help, but more drastic measures in need: experts
BUSINESSicon  26/03/2020 

The finance ministry’s recent cut and exemption of some securities service fees won't urgently help soothe investor nerves over the spread of the COVID-19 and more strong measures are needed to support businesses, analysts have said.

Banks slash fees for interbank fund transfers
Banks slash fees for interbank fund transfers
BUSINESSicon  26/03/2020 

Thirty-seven commercial banks have confirmed the reduction of fees for fast interbank fund transfers following the move of the National Payment Corporation of Vietnam (NAPAS) to halve the switching fees for local banks from Wednesday.

Foreign currency market eases following central bank’s intervention
Foreign currency market eases following central bank’s intervention
BUSINESSicon  26/03/2020 

The US dollar on Wednesday depreciated against the Vietnamese dong after the State Bank of Viet Nam (SBV) sold the greenback on the cheap to stabilise the local foreign exchange market.

Vietnamese currency more stable than other regional peers
Vietnamese currency more stable than other regional peers
BUSINESSicon  26/03/2020 

Though the unofficial value of the VND has now fallen about 3 percent against the USD, the rate is still a smaller depreciation than that seen by most of Vietnam’s regional peers and is expected to stabilise around that level.

VN garment-textile group to ask for permission to export anti-virus products
VN garment-textile group to ask for permission to export anti-virus products
BUSINESSicon  26/03/2020 

Vietnam National Garment and Textile Group (Vinatex) will ask for the Government’s permission to export anti-virus products as a measure to overcome difficulties caused by the novel coronavirus (COVID-19) pandemic.

COVID-19 affects Vietnam’s automotive industry
COVID-19 affects Vietnam’s automotive industry
BUSINESSicon  26/03/2020 

The spread of the COVID-19 pandemic in almost all countries and territories worldwide is likely to force automobile manufacturing and assembly firms in Vietnam to scale down operations and even close their factories.

COVID-19 brings more business to insurers
COVID-19 brings more business to insurers
BUSINESSicon  26/03/2020 

The COVID-19 pandemic has so far hurt many businesses in the country, except the insurance industry.

COVID-19 pandemic leaves Airbnb hosts thinking of the long-term
COVID-19 pandemic leaves Airbnb hosts thinking of the long-term
BUSINESSicon  26/03/2020 

There are many problems associated with COVID-19, but one major issue caused by the global pandemic is its virtual destruction of the travel industry.

Coronavirus: US Senate passes $2tn disaster aid bill
Coronavirus: US Senate passes $2tn disaster aid bill
BUSINESSicon  26/03/2020 

The largest government economic stimulus in US history is approved, despite a last-minute row.

Foreign currency market stabilised following central bank’s intervention
Foreign currency market stabilised following central bank’s intervention
BUSINESSicon  26/03/2020 

The US dollar on March 25 depreciated against the Vietnamese dong after the State Bank of Vietnam (SBV) sold the greenback on the cheap to stabilise the local foreign exchange market.

COVID-19, dimmed global outlook weigh on bond market
COVID-19, dimmed global outlook weigh on bond market
BUSINESSicon  26/03/2020 

The novel coronavirus (COVID-19) pandemic and deepening global economic uncertainty are putting great pressure on Viet Nam’s local currency bond...

How COVID-19 affects Vietnamese consumers’ FMCG spend and purchase behaviours
How COVID-19 affects Vietnamese consumers’ FMCG spend and purchase behaviours
BUSINESSicon  26/03/2020 

The COVID-19 outbreak has hit fast-moving consumer goods (FMCG) businesses but not all categories and retailers will suffer negative impacts,...

Wood product processors need to restructure production due to COVID-19
Wood product processors need to restructure production due to COVID-19
BUSINESSicon  26/03/2020 

Local wood processing enterprises need to continue reorganising their production and business activities to deal with difficulties during the novel coronavirus pandemic, according to the Ministry of Agriculture and Rural Development.

Ministry targets no drop in exports this year despite COVID-19
Ministry targets no drop in exports this year despite COVID-19
BUSINESSicon  26/03/2020 

The Ministry of Agriculture and Rural Development has targeted no drop in export value of agricultural products this year, even though the sector was hit hard by the novel coronavirus (COVID-19) pandemic from the beginning of this year.

BUSINESS NEWS HEADLINES MARCH 26
BUSINESS NEWS HEADLINES MARCH 26
BUSINESSicon  26/03/2020 

Commercial banks support COVID-19-hit businesses

PM orders suspension of signing rice-exporting contracts
PM orders suspension of signing rice-exporting contracts
BUSINESSicon  26/03/2020 

Prime Minister Nguyen Xuan Phuc has ordered a halt of signing new rice-exporting contracts, the Government Office said in a latest document concerning this matter.

Two Vietnamese drop out of billionaires list
Two Vietnamese drop out of billionaires list
BUSINESSicon  26/03/2020 

The list of the world’s dollar billionaires announced recently by Forbes shows that the number of Vietnamese billionaires has fallen from five to three.

Banks face bad debt risks amid pandemic
Banks face bad debt risks amid pandemic
BUSINESSicon  26/03/2020 

After two years of strong recovery and high growth, the banking sector is facing major challenges because of Covid-19.

VN farm exports head for Chinese market again
VN farm exports head for Chinese market again
BUSINESSicon  26/03/2020 

Signs of Vietnamese farm export recovery have appeared as the Chinese market has begun importing products again.

 
 
 
Leave your comment on an article

OR QUICK LOGIN