VietNamNet Bridge - The government has called for public investment in aviation infrastructure projects, but it has not shown how the investors should approach the projects.

Soon after the Ministry of Transport made public a plan on calling for public capital for the aviation sector, many investors showed interest.

Contrary to predictions that airport projects would only attract foreign investors because of the need for a high level of capital, the investors expressing interst are all Vietnamese businesspeop;le.

Vietnam Airlines, the nation’s flag air carrier, and Vietjet, the only private airline, both want to buy T1 Terminal at the Noi Bai International Airport. 

Meanwhile, the T&T Group has asked to buy the Phu Quoc Airport, and Jetstar Pacific eyes the Da Nang Airport. The Rang Dong Group targets Phan Thiet Airport.

It is understandable why Vietjet Air wants T1. The air carrier, after three years of operation, now has 23 aircraft and provides 150 flights daily. It still has to use many services provided by Vietnam Airlines, from fuel to in-land services to catering and technical services.

Sun Group has obtained the right to develop the Van Don Airport in Quang Ninh province as an important component project of the Van Don Special Economic Zone project. The casino to be set up there with the Prime Minister’s approval would find it difficult to attract players if there is no airport in the area.

However, while private investors are excited ab touthe opportunities to develop air infrastructure, the plan on calling for private capital remains on paper.

Deputy Minister of Transport Pham Quy Tieu said it was necessary to call for public capital as the state cannot fund it alone. But he emphasized that offering concessions to private investors to exploit airports remains only a “policy”, and many things still need to be done to make the policy realistic.

Tieu said the plan will still need the Prime Minister’s approval, and that the Phu Quoc Airport, expected to be the first to be transferred to the pilot program, will only target private, not foreign, investors. Thus, the goverment is being very cautious on calling for public capital. 

Lai Xuan Thanh, head of CAAV (Civil Aviation Authority of Vietnam), said the cautiousness is necessary because airport infrastructure is related to national security and defence.

Thanh said there are two options of offering concessions: either sign BOT and BOO contracts, under which investors will build, upgrade and operate airports, or equitize the enterprises which now run the airport.

DDDN