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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Mekong Delta supports increasing tourism

Ministry of Culture, Tourism, and Sports will set up a Tourism Coordinating Office to support Mekong Delta tourism cooperation and increase tourism to the region.

Vice Minister Ho Anh Tuan told local media that the administration will implement the programme to create specific tourism products for the region.

“Tourism has not been managed professionally in the region. There is a severe shortage of employees and no agencies to coordinate activities.”

Communities in the Mekong Delta need to forge closer links among themselves to develop regional tourism products and services.

Critics suggested that communities should focus on promoting ecotourism in Cham Chim National Park, Lang Sen Wetland Reserve, Ca Mau mangrove swamp and Phu Quoc island district.

In addition, village tourism should be developed in Tien Giang, Ben Tre, Vinh Long and Hau Giang provinces and CanTho city, while spiritual and cultural tourism should be the focus in An Giang, Soc Trang and Tra Vinh.

Vietnam National Administration of Tourism’s Hotel Department deputy head, Vu Van Thanh, said there was a need to develop home stay tourism, but communities would need to take the lead.

In 2013, the region welcomed 1.5 million international tourists.

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New Routes in Vietnam by Jetstar

Jetstar Pacific airline will open two new domestic air routes from Ho Chi Minh City to Nha Trang and Phu Quoc starting 15 December.

According to the airline, the new domestic routes will meet growing travel demand between the destinations.

An Airbus A320 will fly the route from Ho Chi Minh City to Nha Trang and Phu Quoc daily.

Jetstar Pacific will purchase an additional two Airbus A320s in early December this year and late January 2014 to cope with increasing numbers of passengers.

The Jetstar Group operates up to 3,000 flights a week to around 64 destinations and carried more than 23 million people in 2013 fiscal year.

Jetstar Group is made up of Jetstar Airways in Australia and New Zealand (subsidiary of the Qantas Group), Jetstar Asia, Jetstar Pacific in Vietnam, Jetstar Japan in Japan and from 2013  Jetstar Hong Kong.

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Cambodia Plans To Establish The First Aviation School

Cambodia plans to establish its first civil aviation school to help improve the country’s aviation industry using a grant from South Korea.

According to Xinhua online media, Cambodia plans to set up the first ever Civil Aviation Training Centre with South Korean assistance to train more people in aviation related skills.

The Council of Ministers’ Press Unit deputy director, Ek Tha, was quoted as saying: “South Korea agreed to provide US$10.1 million in a grant to Cambodia for the project.”

It has taken more than a year to get to the announcement stage after Cambodia and South Korea signed off on an agreement detailing the project.

Most of the delays reaching an accord were understood to be related to the need to have checks and balances in place to ensure transparency in the grant’s accounting.

Cambodian Deputy Prime Minister and Cabinet Minister Sok An and Baek Sook Hee, head of the Korean International Cooperation Agency in Cambodia, signed the project agreement on earlier this month, he said.

The deputy director cited: “The project is very crucial because Cambodia needs to acquire knowledge and technology necessary to improve its aviation industry.”

The construction of the centre will start in the second half of 2014 in the eastern compound of the Phnom Penh International Airport on a plot of 8,000 square metres, he said.

The construction will be completed in a year with necessary facilities for training airline staff, he said.

In addition, South Korea will send experts and instructors to train Cambodian airline crew at the centre until 2017.

The local media also quoted the State Secretariat of Civil Aviation undersecretary, Say Sokhan, as saying: “Once the facility is complete, Korean experts will train Cambodians to become pilots, air traffic controllers, flight attendants and airport security guards.”

“There are only about 20 Cambodian pilots right now…and they were all trained in the Soviet Union,” he said, adding that SSCA officials are currently required to travel oversees for training.

Cambodia received 4.3 million air passengers in 2012, up 14.7% year-on-year, according to the Cambodia Airports’ data.

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New Vietnam Tourism Representative Office In Tokyo

Vietnam Tourism Association says a tourism representative office will open in the Tokyo this December.

The association vice chairman, Vu The Binh, said the association will also establish a business club organizing tours to Japan to promote Vietnam-Japan tourism and to protect the two countries’ interests in tourism.

To boost two-way travel, the association will establish a club by recruiting firms offering Japanese tours. They will be able to tap the representative office in Tokyo to network, he said.

He added: “We are working with a Japanese partner to make the office a success.”

The office will offer tourism information, organize tourism promotions in Japan, offer consulting services to Japanese investors eyeing Vietnam’s tourism industry, and support tour sales to Japanese visitors.

According to Vietnam National Administration of Tourism, January to September this year, 450,004 Japanese tourists visited Vietnam an increase of 5.1% over the same period last year.

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First Prepaid Travel Card in Myanmar To Be Launched By MasterCard and CB Bank

MasterCard and CB Bank have launched their first payment product in the country – a prepaid travel card for locals called the CB Bank EASI Travel Prepaid MasterCard card.

The reloadable prepaid card will be made available to Myanmar residents for when they travel outside of the country. It is the first such card product to be launched in Myanmar and is yet another stage in the evolution of the electronic payments ecosystem.

MasterCard has been working very closely to enable CB Bank (which it licensed in September last year) to roll out its very first prepaid MasterCard card. CB Bank is already certified and has undergone full system testing as part of its efforts to be connected to the global payments network.

Mr. Kyaw Lynn, Executive Vice Chairman and CEO of CB Bank said, “CB Bank continues to be first in the electronic payments sector in Myanmar and we are pleased to be able to collaborate with MasterCard to launch this travel prepaid card. Just as our country is opening up to the world, at the same time, the world is opening up to our countrymen and we’re seeing more and more locals travel abroad. We are so glad to introduce this travel prepaid MasterCard card to help make their travels safe and hassle-free without the worries of carrying large amounts of cash.”

 Matthew Driver, president, Southeast Asia, MasterCard, added, “Part of the allure of operating in such a frontier market is in seeing the vital steps of financial inclusion play out: a vast majority of people in Myanmar remain unbanked and don’t have access to financial services. But the payments infrastructure is rapidly developing – from the rollout of ATMs, point-of-sale terminals, and now the introduction of prepaid cards. This presents an alternative option for the growing number of locals who’ve had to carry wads of cash when they leave the country for business or leisure travel. It offers them a safe and secure payment method while abroad.”

Overall consumer optimism is at an extreme high in Myanmar (96.0 Index points according to the latest MasterCard Index  of Consumer Confidence). According to the MasterCard survey of Consumer Purchasing Priorities, nearly two-thirds of people who have traveled abroad intend to do so again within the next 12 months, making the introduction of a prepaid travel card timely for the market.

“Part of our financial inclusion strategy in Myanmar is to educate the local population about the value of electronic payments – we would like to help them understand the benefits of doing away with cash,” Driver added.

The launch of a new prepaid card marks another vital step forward in the country’s reform of its banking and financial system. MasterCard was one of the first international payments networks to issue a license to a Myanmar bank in September last year, paving the way international payment cards to be accepted in the country for the first time. In November, MasterCard and Co-operative Bank Ltd (CB Bank) teamed up to launch the first ATM transaction at one of the bank’s Yangon ATMs.

It is expected that more than 500 restaurants, retail outlets and hotels in Myanmar will be accepting payment cards by the end of the year, following the rollout of Point-of-Sale (POS) terminals in March this year with CB Bank.

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Tourism To Be Bloomed in Vung Tau

According to reports from the management committee of tourist areas in Vung Tau City, in the first 6 months of 2013, resorts and beaches of the city welcomed 1.54 million tourists, which boosted up by 9% compared to the same period last year.

During this time, the security team of the Vung Tau’s management committee of tourist area saved 785 swimmers who were struggled within whirlpool, 158 cases of losing life-buoy; found 40 lost children and brought them back to their parents, and transported 18 severe victims to hospital in time.

Besides, the committee also collaborated with other agencies, authorities and organization to conduct frequent inspections to maintain security and sanitation, and stabilize prices with prompt actions. Thank to this, Vung Tau is always reviewed as a peaceful and clean tourist destination of Vietnam.

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Greater Mekong Subregion Single-visa Plan Steps Forward

The reality of a single-visa for visitors to the Greater Mekong Subregion (GMS) took a small step towards reality with a forum of public and private sector representatives from the countries concerned vowing to push their governments to speed up implementing the proposal.

 

Comprising Thailand, China (specifically Yunnan Province and the Guangxi Zhuang autonomous region), Burma, Cambodia, Laos and Vietnam, the GMS single-visa proposal is expected to see a significant boost in tourism between member countries, and is a prelude to a wider Asean (Association of Southeast Asian Nations.) plan to include tourists from an additional six non-member countries; Japan, China, South Korea, India, Australia and New Zealand, on a similarly styled single visa.

Though no Asean member has yet adopted the broader plan, Arkhom Termpittayapaisith, secretary-general of the National Economic and Social Development Board, said his agency will raise the Asean single-visa issue at a session of the Committee on Economic Cooperation with neighbouring countries later this month.

While it is unlikely that all six nations comprising the GMS will be in a position to implement the single-visa plan concurrently, Chiang Rai Chamber of Commerce has suggested those that were could go ahead first, acting as trail blazers on the advanced implementation of the scheme.

Highway R3 connecting Kunming, Laos and Thailand has been completed in preparation of the implementation of the GMS one-visa proposal, while the Chinese government is paying half the cost of constructing a fourth bridge across the Mekong River, between Chiang Khong in Chiang Rai Province and Huay Xai in Lao, which will be completed next year.

Tourist arrivals by land are poised to soar once more immigration facilities can be set up, especially for Chinese visitors, with the UN World Tourism Organization (UNWTO) estimating China will be the world’s fourth largest source of outbound tourists by 2020, accounting for 100 million visitors.

UNWTO said East Asian arrivals in Thailand grew by 11.4 per cent to 4.41 million last year, with the number of Chinese visitors rising by 44 per cent to 1.12 million.

According to Mr. Arkhom, GMS countries understand tourism’s potential and have been improving facilities to attract more visitors to places such as Luang Prabang, Laos, a Unesco World Heritage site, with the city upgrading its airport to accommodate Boeing 737s and improving the highway between Thailand’s Nan Province and Jinghong city in China.

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Jet Asia Airways' Expansion in Asian

Thai Airline Jet Asia Airways plans to roll out fully scheduled flights by next year.

The Bangkok-based carrier is increasingly moving away from a traditional model reliant on charter flights towards scheduled services, according to Pablo Saba, development manager of Jet Asia Airways, adding that Jet aims to launch fully scheduled flights by next year.

With a fleet of five wide-body Boeing 767 aircraft and a sixth one on the way, the airline currently operates scheduled charters from Bangkok and Phuket to China, South Korea and Japan, including Beijing, Tianjin, Chongqing, Nanjing, Shenyang, Changsha, Tokyo and Seoul – cities that lie within a flight distance of between five and eight hours from the Thai capital.

Meanwhile, Japan’s recent visa liberalisation policy for Thai nationals has made Japan “more feasible for route development”, said Saba.

“We’ve been focusing on inbound passengers to Thailand, but we’re now keen to explore the outbound market as Thai market demand to Japan is strong,” he added.

Also in the delivery pipeline is a narrow-body B757 aircraft – likely within the next eight months – that will pave the way for Jet Asia Airways to introduce destinations within a three-hour radius in South China, South-east Asia and India, Saba shared.

At the same time, the airline has plans to enter Russia and the Middle East within the next year.

Established in 2009, Jet Asia Airways operates out of Suvarnabhumi International Airport.

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Wi-Fi Connectivity Provided in Saigon Railway Station

The Saigon Railway Station has introduced Wi-Fi connectivity for passengers waiting for trains.

The station head, Nguyen Van Thanh, said the system allows 800 simultaneous access points with a four Mbps broadband connection.

“The installation is the first phase of a project to offer free Wi-Fi hotspots at railway stations,” he said.

As part of the first phase, costing US$47,600, project investor, New Generation Joint Stock Company, will install Wi-Fi at Nha Trang, Dieu Tri and Danang railway stations this month.

Beside railway stations, the country continues to install free Wi-Fi service in popular tourist destinations. Next week, the service will be opened at Hue, a world heritage town. Wi-Fi will be available in the administrative area and tourism spots. The service will be free initially, but the plan is to eventually sell cards to tourists to use the service.

Earlier, the country installed the system at Hoi An, Danang and Halong.

Over the next two years Quang Ninh province will provide more free Wi-Fi at economic and tourist hub cities such as Uong Bi, Cam Pha, Van Don and Mong Cai.

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Vietnam's Marine Tourism To Be Bloomed

Marine tourism is beginning to make its mark on Vietnam’s tourism performance according to the Ministry of Culture, Sports and Tourism.

The ministry reported that marine tourism has posted a sales growth rate averaging 23.7% annual, 2000 to 2010 and the trend continues.

The sector should achieve revenue of around US$10 billion by 2020.

To reach the goal, six destinations will be developed to attract marine tourism.

They are: Halong Bay, Tu Long-Cat Ba in the north; Lang Co-Canh Duong; Hoi An-Cu Lao Cham; Nha Trang-Cam Ranh; Phan Thiet-Mui Ne in the central region; and Phu Quoc near the Mekong Delta province of Kien Giang.

Seaports will be improved, or built, at Halong, Danang, Nha Trang, Ho Chi Minh City and Phu Quoc by 2015.

The long-term plan is to focus on coastal regions in the north (Mong Cai-Ninh Binh) and those in the north-central and the central (Thanh Hoa-Binh Thuan), in the southeast (Ba Ria-Vung Tau-HCMC) and in the southwest (Tien Giang-Ca Mau-Ha Tien).

To support marine tourism, the ministry has suggested to the central government to exempt visas for foreign visitors to popular tourism islands such as Con Dao and Phu Quoc.

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New Flights To Korea By Vietnam Airlines

Vietnam Airlines will add four weekly flights from Ho Chi Minh City to Incheon and five weekly flights on the Hanoi-Busan route starting 28 October.
The airline announced the additional services would serve growing tourist demand for holidays in Vietnam.

The airline will add four more flights on the route Ho Chi Minh City-Incheon route, coded VN406 and VN407 and operating Mondays, Wednesdays, Thursdays, and Saturdays.
Five flights will be added on the Hanoi-Busan route, designated VN429 and operating Tuesdays, Wednesdays, Fridays, and Sundays.
With the new flights, there will be 11 flights a week on the HCMC – Incheon route and 12 flights a week on the Hanoi-Busan route.
South Korea is one of Vietnam’s main tourism markets. During January to August this year, the country welcomed 504,292 Koreans increasing 10.0% year on year.

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New Air Routes To China & Indochina By Thai Airways International

Thai and its subsidiary Thai Smile will open four new routes this winter to China, Japan and Laos, competing head to head with low cost carriers.

The last Thai Airways International Board of Directors meeting is giving a boost to Thai Smile with more international destinations being served by Thai Airways subsidiary. Thai Smile’s expanding network confirms the repositioning of the carrier into a complementary airline to Thai Airways with lower costs and simplified services.

The Board of Directors approved of the opening of the following four new routes for the winter season starting October 27, in order to increase revenue as targeted and meet market demands.

The first Thai Smile route will link Bangkok to Chongqing in the People’s Republic of China. Flights will be operated with an Airbus A320-200 aircraft with three frequencies per week, At the same date, Thai Smile will also launch three weekly frequencies from Bangkok to Changsha in the People’s Republic of China with an Airbus A320-200 aircraft. The frequency will be increased to five flights per week from January 16, 2014.

The most surprising will be the arrival of Thai Smile on the Bangkok-Luang Prabang (Laos) route which will further dent into another lucrative route served by Bangkok Airways. Thai Smile will propose a daily flight from November 16 with an Airbus A320-200. The carrier will then be in competition with two other airlines, Bangkok Airways and Lao Airlines.

While Thai Smile will be positioned in these three routes, Thai Airways confirmed that it will launch a Bangkok-Sendai route in Japan. The new route which has been planned for at least five years will be operated with an Airbus A330-300 with three flights per week, effective 3 December 2013.

Meanwhile, the Board of Director acknowledged Thai Airways Group performance in August 2013. Available Seat-Kilometer (ASK) increased 10.8 percent due to new aircraft deliveries and route adjustments based on passenger demand. Revenue Passenger-Kilometer (RPK) increased 9.9 percent, resulting in an average Cabin Factor of 78.0 percent, which was lower than the same month last year which showed an average of 78.7 percent. The number of passengers carried increased 6.2 percent, compared to the same month last year.

For Thai Smile in August 2013, Cabin Factor averaged 77.0 percent; lower than the same month last year which averaged 82.5 percent. Thai Smile business unit serves 13 routes, compared to four routes last year.

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