The overload at the country’s airports is expected to be reduced as a wave of large investors are seeking investment opportunities in the aviation infrastructure segment.

Overloaded airports become a major concern

According to a representative of Vietnam Air Traffic Management Corporation (VATM), north-south routes in Vietnam remains one of the world’s most crowded airlines. This route is being exploited by three domestic airline companies, including Vietnam Airlines, Vietjet, and Jetstar Pacific.

The overload at Tan Son Nhat International Airport in Ho Chi Minh City remains a concern for the airport management board, especially during the Lunar New Year.

According to Tran Doan Mau, director of Southern Airport Authority, in the latest Lunar New Year, the number of passenger arrivals exceeded 4.14 million, up 25 per cent on-year, while take-offs and landings reached 26,288, up 20 per cent year-on-year.

In 2016, the overload at the country’s airports, especially at Tan Son Nhat Airport in Ho Chi Minh City, forced Vietnam Airlines to add 1,392 hours of flight, leading to an additional cost of VND188 billion ($8.3 million) for the airline.

Besides, the Hanoi People’s Committee has also grown concerned about the overload at Noi Bai International Airport.

Hoang Trung Hai, Secretary of the Hanoi Party Committee, affirmed, “We need to develop more terminals to meet the capacity of 50-70 million visits. The number of arrivals at Noi Bai Airport has been increasing by 30-40 per cent year-on-year,”

Private sector stepping up

Over the past three years, various groups have been investing in aviation infrastructure, responding to the overwhelming unmet demand.

In late 2017, ACV proposed the Ministry of Transport (MoT) to invest VND1.91 trillion ($84.1 million) and VND2.3 trillion ($101.3 million) to upgrade Tan Son Nhat and Noi Bai airports.

Accordingly, ACV will implement the VND680-billion ($30-million) first phase of upgrading Tan Son Nhat Airport’s runways and the VND1.23-trillion ($54.18-million) second phase’s escape lane.

At Noi Bai Airport, ACV will upgrade runways and skidways during a 16-month project.

Recently, Imex Pan Pacific Group (IPP) has proposed the Ministry of Transport to develop a runway, the international terminal T2, and an international airport in Kien Giang province’s Phu Quoc Island.

Specifically, IPP proposed building the 3,000-metre runway from VND2 trillion ($88.1 million). Additionally, IPP will co-operate with ACV to develop the VND7-trillion ($308.37-million) international terminal T2 with the capacity of 10 million visitors annually.

“IPP will co-operate with international tourism companies to add 5-7 million arrivals per annum to Phu Quoc,” said Johnathan Hanh Nguyen, chairman of IPP.

IPP also remains the largest investor in the VND3.73-trillion ($164.3-million) Cam Ranh Airport with the capacity of eight million arrivals per annum.

There are at least five aviation infrastructure projects running on private sector investment, including:

Sun Group’s Van Don International Airport;

Airports Corporation of Vietnam (ACV)’s Danang International Airport;

The upgrading of Tan Son Nhat International Airport;

Cam Ranh International Terminal JSC (CRTC)’s Cam Ranh International Airport and International Terminal;

Rang Dong JSC’s Phan Thiet International Airport.

VIR