return icon

Will private capital be poured into airports?

VietNamNet Bridge – The Ministry of Transport (MOT) believes that it will succeed in attracting private capital to airport projects if it can develop reasonable policies.

VietNamNet Bridge – The Ministry of Transport (MOT) believes that it will succeed in attracting private capital to airport projects if it can develop reasonable policies.




MOT has recently made many noteworthy announcement regarding mobilization of capital for airport projects.

Several days ago, it announced a plan to offer concessions to private investors in Phu Quoc and Noi Bai airports. Later, it said that public capital would be sought for airport projects and money would not just come from the state’s budget. And most recently, it has outlined four ways to call for public capital.

Vu Anh Minh, director of MOT’s Enterprise Management Department, in an interview with Thoi Bao Kinh Te Sai Gon, emphasized that diversifying investment sources in airports is the optimal solution.

In 2011-2014, the air infrastructure projects alone needed total capital of VND45 trillion to be developed. Of this amount, 13.7 percent, or VND6.154 trillion was sourced from the state budget and from government bonds.

Meanwhile, capital demand for airport projects has been increasing rapidly. A report by IATA (International Air Transport Association) showed that Vietnam ranks seventh among countries with the highest growth rate in the number of passengers.

Vietnam can no longer rely on the state for capital to build airports.

Minh said MOT hopes to mobilize public capital for airport project development from four sources as follows: 1) money to be collected from the equitization of ACV holdings (Airports Corporation of Vietnam); 2) money to be earned from disinvesting and equitizing ACV’s subsidiaries; 3)  money to be earned from offering concessions in airports to private investors; and 4) capital from various sources in the public.

Tuoi Tre newspaper has quoted Lai Xuan Thanh, head of the Civil Aviation Authority of Vietnam (CAAV), as saying that private investors have shown interest in airport projects.

The second runway is being built at Cam Ranh Airport, and once it is put into operation, the existing terminal may become overloaded.

Therefore, CAAV and ACV plan to call for private capital for a project to develop a new terminal at Cam Ranh to satisfy increased demand.

“The Phu Quoc Airport would also be put up for sale this year. Besides, the project on expanding the terminal at Da Nang Airport also needs huge capital,” he said in Tuoi Tre.

According to Nguyen Thanh Hung, deputy chair of Vietjet Air, the air carrier plans to receive 10 new airplanes every year to serve its business expansion plan. Therefore, it wants to have good infrastructure at airports.



A spicy treat from Hai Phong cuisine

Among all versions of the iconic Vietnamese sandwich, the spicy banh mi of Hai Phong might be the smallest, but don't let that fool you into thinking it's any less than its larger siblings.

Luxury apartments selling well in Vietnam

Wealthy Vietnamese are ready to spend millions of dollars to buy super-luxury properties.

How will the US FED's interest rate hike affect the Vietnamese dong?

The Vietnamese dong may lose 4 percent of its value against the USD in 2022, while the deposit interest rate is predicted to lose 30-50 points after the US FED’s move and SBV’s first policy responses.

Opportunity for local firms to enter $200bil games market

Now is the time for Vietnam’s game industry to enter the global game market, worth $200 billion.

Japanese professor demands apology from Em Và Trịnh producer

Japanese professor Michiko Yoshii, one of Vietnamese celebrated songwriter Trinh Cong Son’s muses, has submitted a request to Vietnamese Cinema Department to ask for the official apology from the producer of the film Em Và Trịnh (You and Trịnh).

FDI inflows continue on downward trajectory

The sharp decline of newly-registered foreign direct investment pulled down the total in the first nine months of the year despite the high disbursement rate.

Vietnam’s steel exports to China nosedive

China is no longer a major export market for Vietnamese-made steel, as revenue from steel shipments to the northern neighbor has plummeted, the General Department of Vietnam Customs reported.

Determining solar, wind power prices still problematic

The electricity prices of many wind and solar power projects have yet to be determined following the expiration of the FIT (feed in tariff) policy, worrying investors.

As pristine as Ru Cha mangrove forest

Ru Cha is the name of a unique primeval mangrove forest in Thuan Hoa Village, Huong Phong Commune, Hue City.

Lack of orders plaguing export enterprises

During the fourth quarter of every year most of the export companies in Vietnam find the need to step up pace in order to meet the increased demand in orders from major import markets such as the US and the European Union.

PM chairs urgent meeting in response to super typhoon Noru

Prime Minister Pham Minh Chinh chaired an urgent meeting on September 27 to hasten response to the approaching super typhoon Noru.

Yen Bai launches tours to conquer two of highest mountains in Vietnam

Tours to conquer Ta Xua and Ta Chi Nhu, two of the 15 highest mounts in Vietnam, were launched in Tram Tau district of northwestern Yen Bai province on September 25.

Typhoon Noru to affect Vietnam’s mainland on late September 27

Typhoon Noru is gaining strength while moving westward at 20-25km per hour, and is expected to make landfall in central Vietnam in the afternoon or evening September 27.

248 aircraft registered under Vietnamese nationality: CAAV

The Civil Aviation Authority of Vietnam (CAAV) has registered 248 aircraft under Vietnamese nationality so far this year, up six from the same period last year.

Investors cautious about disbursing investments amid higher rates: experts

As many major central banks tightened monetary policies to contain soaring inflation, the State Bank of Vietnam (SBV) on September 22 also decided to hike its benchmark interest rate by 100 basis points, effective September 23.