Controversial Long Thanh airport project

On the fringes of the ongoing National Assembly session, a Radio Voice of Vietnam (VOV) interviewed Transport Minister Dinh La Thang about the project.

Reporter: It is said that investment in airport construction projects has proved ineffective so far. Will you provide us your thoughts about this issue?

Minister Thang: How is ineffective? If these projects are inefficient, we had better invest more in real estate or other areas rather than in airport building.  Airports in our country are used for civil air transport and defence and security. Since the national liberation, we embarked on building only a new airport known as Phu Quoc and the remaining are previously- built airports.

Transport Minister Dinh La Thang (R)

It is not right to suppose that there have been scattered investment in airport construction. Dien Bien airport is a case in point. No one will maintain the airport if its operations are inefficient. Some other airports are still maintaining their operations not only for civil aviation transport related to economic purposes but also for defence and security issues.

Three airports in Haiphong- Do Son, Kien An and Cat Bi- were previously associated with both defence and security.

Is airport investment effective or not? The Vietnam Aviation Corporation’s annual operations run smoothly, gaining profits. However, there are still some pending issues that need to be resolved to improve efficiency. Such an investment is needed for a developing country like Vietnam which is boosting deeper international integration.  Consequently, developing aviation is an inevitable trend.

Reporter: But the question is whether we should invest in such large-scale projects in the current context?

Minister Thang: Public opinion and many NA deputies also echoed their views on the necessity to build Long Thanh airport because Tan Son Nhat airport cannot be expanded. However, this is not an opportune time to submit the Long Thanh airport project to the legislative body for its consideration as public debt is being primarily focused on at this session.

The government has reported public debt remains within the safety limit but is showing upward trend. Therefore, it is imperative to scrutinize all major projects in the current difficult economic.

The construction of Long Thanh airport should meet criteria for public debt safety without impacting on the nation’s common development.

It goes a long way towards conducting a feasibility study and carrying out the project.

How to mobilize investment capital for the project is seen as a thorny problem that concerns the NA and the people. A pre-feasibility report has just given a rough capital figure of VND24 trillion that is still far below the real estimates. Everything relating to the project is afoot.  The feasibility report is not made if the project gets no approval from the NA.

Regarding investment capital, the government plans to borrow ODA capital and then lend it to businesses, which will be responsible for investment and repayment later.

In fact, the government has done alike for the previous Tan Son Nhat and Noi Bai airport building projects and the Vietnam Aviation Corporation has guaranteed the repayment and profitable business operations for years.

VND24 trillion is a too big figure compared to the current economic status. Investment capital is just a hard nut to crack but many more obstacles lay ahead when the project is carried out.

Reporter: Do relevant agencies take into account slippage in prices?

Minister Thang: We suppose there is slippage for major projects but the fact shows that no airport construction project, including Tan Son Nhat and Noi Bai has faced the problem so far. Many other roadway projects such as Highway 1A, which are slated for completion next year, also report no slippage while even enjoying a capital surplus.

I think there will be no price slide for the Long Thanh airport. The bottom line is that the quality of the project must be ensured to get approval from the NA.

Reporter: What do you think if the project is implemented after 2020?

Minister Thang: In my opinion, 2025 is an appropriate time to jump-start the project but preparations should be made as soon as possible.

Reporter: Thank you very much.