May 8, 2014

Aviation expansion in Vietnam

Prime Minister Nguyen Tan Dung recently approved a civil aviation strategy that indicates the country will need to increase commercial aircraft registered in the country to 250 by 2030.

According to the plan, it calls for airlines to substantially increase air transport to traditional markets in Southeast Asia, Northeast Asia and China.

The strategy identifies other key areas for expansion such as South Asia, East Europe and the former Soviet Union.

To succeed it will have to convince local airlines to invest in more aircraft, while the government will need to put in place incentives for airport developers and ensure airport fees are competitive to encourage foreign airlines to add more services to give better connectivity to support economic growth.

The first step is to raise the number of aircraft serving the country to 210 by 2020, almost double the aircraft count today. By 2030 the fleet should reach 250.

To fulfill the set targets, the aviation sector will continue to invest heavily and upgrade infrastructure such as terminals and parking lots to improve the efficiency and enlarge aviation ports.

Priorities will be given to expanding and upgrading international airports such as Tan Son Nhat, Noi Bai, Cat Bi, Phu Bai, Danang and Cam Ranh and completion of the first phase of Long Thanh international airport.

Moreover, there are plans to turn Chu Lai International airport into a cargo transit centre to serve Southeast Asia and China’s southern region.

The International Air Transport Association (IATA) forecast that by 2014 Vietnam would become the world’s third-fastest growing market for international passengers and freight after China and Brazil.

It predicts passenger traffic through the country will reach 34 to 36 million by 2015.
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