return icon

Financial dilemma over air strips of Noi Bai and Tan Son Nhat airports

State management agencies are at a loss in finding suitable capital for improving the runways at Noi Bai and Tan Son Nhat international airports.



The ACV proposal to renovate the airstrips at Noi Bai and Tan Son Nhat international airports may not be eligible to access state financing


While recognising the need to renovate and upgrade the runways of Vietnam’s largest international airports to ensure safe operations and accommodate more modern aircraft, Vietnamese ministries are hard-pressed about the legal viability of allocating public funds for the purpose.

Due to the over-exploitation and the use of new-generation aircraft with large load and wheel pressure (such as A350-900, B787-9, B787-10), since 2017 the airport system of Tan Son Nhat International Airport area has been deteriorating at an accelerated rate. Similarly, Runway 1B in Noi Bai International Airport has also been overloaded and seriously damaged, requiring renovation, upgrade, or complete replacement.

To cover these works, Airport Corporation of Vietnam (ACV) has sent a written request in January to the MoT and CMSC to propose necessary mechanisms and policies to raise VND4.15 trillion ($180.43 million) for renovating and upgrading the airport infrastructure systems at the two airports.

According to ACV, the total capital necessary to renovate and upgrade Runway 25R/07L at Tan Son Nhat is VND1.88 trillion ($81.74 million), and Runway 11R/29L (1B) at Noi Bai is VND2.28 trillion ($99.13 million).

ACV leaders commented in last September that the Government Office has started collecting opinions on the project from ministries. If everything goes smoothly, the project will take at least six months to be approved and about six months more to reach a final policy.

“These are all extremely urgent projects because the infrastructure systems of these two international airports are showing signs of damage of increasing severity which can directly impact the safety of operations and exploitation,” said Vu The Phiet, AVC general director.

However, there is significant confusion as to the possibility of ACV’s projects tapping into the state budget, with different ministries on different sides of the fence.

In official Dispatch No.1972/BTC-TC sent to the government office, the Ministry of Finance (MoF) said that ACV’s plan is in accordance with the Law on State Budget and the Law on Public Investment. However, as cited in the decisions of the prime minister and the Ministry of Planning and Investment (MPI) on the allocation of medium-term public investment funds, the renovation and upgrade of the airstrips of Tan Son Nhat and Noi Bai international airports are not included in the medium-term public investment portfolio for 2016-2020 of the Ministry of Transport (MoT).

The projects are not included in the medium-term public investment plan for 2016-2020 either, according to Document No.8572/BKHDT-TH dated November 13, 2019 of the MPI on the allocation of state investment in 2020.

The MoF has also pointed out that the principles, criteria, and norms for allocating investment capital from the state budget in 2021-2025 have not been approved yet by the competent authorities. Therefore, the ministry argues that it has no basis to consider ACV’s proposal to allocate capital yet.

Earlier, in early January 2020, in document No.265/BGTVT-KHDT, the MoT proposed the PM to allocate about VND950 billion ($41.3 million) from the state budget capital in 2016-2020 to cover part of the VND4.15 trillion ($180.43 million) cited by ACV for these projects. The remaining VND3.2 trillion ($139.22 million) would be allocated from the medium-term state budget for 2021-2025.

In addition to the plan of using public investment capital, the MoT also proposed the PM to consider assigning the Commission for the Management of State Capital at Enterprises (CMSC) to study the plan of using the capital of Airports Corporation of Vietnam (ACV) to implement the projects soon.

The repayment of capital to ACV (if any) will be considered in detail after the plan to assign ACV to manage and exploit aviation assets is decided by the competent authority. VIR

Minh Duong

VN Airports Corporation expects 2020 profit down by VND6 trillion due to coronavirus

VN Airports Corporation expects 2020 profit down by VND6 trillion due to coronavirus

The Airports Corporation of Vietnam expects profit this year will reach just US$73.4 million, a decrease of VND6 trillion compared to the year’s forecast, due to the effect of coronavirus.

Airports Corporation of Vietnam be investor of Tan Son Nhat, Long Thanh airports

Airports Corporation of Vietnam be investor of Tan Son Nhat, Long Thanh airports

The Ministry of Planning and Investment (MPI) has submitted to the Prime Minister a plan to assign the Airports Corporation of Vietnam (ACV) to develop the T3 terminal at Tan Son Nhat Airport.


Vietnam looks forwards to stronger investment from US, Europe

Vietnam is hoping to attract more investment from the US, Europe and major global enterprises under a recently approved strategy on foreign investment cooperation.

People in HCMC wait in long queues at passport office on July 1

On July 1 afternoon, thousands of people lined up waiting for passports at the Immigration Department on the first day of issuing ordinary passports in the new form.

Three SARS-CoV-2 Omicron variant BA.5 cases detected in Hanoi

Although the number of daily new cases of Covid-19 is decreasing sharply, Hanoi has recorded three infections caused by the BA.5 sub-strain of the Omicron coronavirus variant.

Binh Duong ranks first nationwide by GDP

The southern province of Binh Duong took the lead among Vietnam’s 63 provinces and cities in terms of gross domestic product (GDP) per capita in 2021, according to the latest data released by the General Statistics Office.

Tan Hoang Minh allegedly appropriates VND8 trillion of investors

Tan Hoang Minh Group, a major property developer based in Hanoi, is facing charges of misappropriating over VND8 trillion from investors, said a Ministry of Public Security representative.

Businesses get set for circular economy

Vietnam’s rapid economic growth has caused environmental challenges which have forced the nation to focus on fostering the development of a circular economy with less pollution and reused and recycled products.

Over 60,000 fishing vessels urged to seek safe shelter from storm Chaba

Approximately 60,000 fishing vessels operating at sea have been urgently notified to avoid dangerous areas and seek safe shelter from incoming Storm Chaba, according to the National Steering Committee for Natural Disaster Prevention and Control.

Siem Reap - Da Nang air route resumed

Flight K6 840 departed from Siem Reap of Cambodia at 3:35 pm on July 1 and landed safely at Da Nang International Airport at 5:35pm on the same day.

Embassy: two Vietnamese arrested in Spain for alleged sexual assault

Police on the Spanish island of Mallorca on June 25 said they had arrested two Vietnamese citizens accused of raping a 17-year-old girl and privacy violation, according to the Vietnamese Embassy in Spain.

The key role of top leaders in fighting corruption in Vietnam

Head of the Party Central Committee's Commission for Internal Affairs Phan Dinh Trac has emphasized the important role of top leaders, especially Party Secretary General Nguyen Phu Trong, the people and the media in fighting corruption.

Huge costs for filling Ha Long largest open-cast coal mine

It would cost about VND 1.20 trillion (USD 52.18 million) to fill the Nui Beo open-cast coal mine pit in Ha Long City after closure.

Cutting taxes on petrol products is more urgent than ever

“VND50,000 please. No, just VND30,000."  “VND100,000, please. No, only VND70,000." These were conversations I heard yesterday at a filling station.

28 provinces, 21 central hospitals report lack of drugs, medical equipment

Twenty-eight healthcare departments and 12 out of 21 central hospitals have reported they lack drugs.

HCMC proposes developing huge port in Can Gio

The HCMC government has proposed developing an international container port in the outlying district of Can Gio with an estimated investment of some US$6 billion to aid the local marine economy.

500 tonnes of Vietnamese-labelled rice exported to EU

Loc Troi Group JSC exported nearly 500 tonnes of rice labelled with its own brand name “Com Vietnam Rice” to the EU markets in June.