According to the Civil Aviation Authority of Vietnam (CAAV), passenger traffic exceeded 69 million over the past 11 months of the year, up nearly 11% year on year, while cargo volume topped 1 million tonnes, up more than 18%. This growth reflects a strong rebound in air travel demand and effective international partnerships supporting Vietnamese airlines.

Globally, aviation leaders including International Air Transport Association (IATA), Boeing and Airbus continue to view the Asia–Pacific region as the world’s primary engine of aviation growth, which are expected to account for 46% of global passenger traffic over the next two decades.

Notably, Vietnam is forecast to be among the fastest-growing markets. According to Dang Ngoc Hoa, Chairman of Vietnam Airlines, the positive outlook is underpinned by political stability, a dynamic economy targeting double-digit growth in the coming decade. In addition, Vietnam’s rapidly expanding middle class is creating a large and sustainable pool of customers for the aviation industry.

Local airlines are seizing this opportunity to increase their market share. Vietnam Airlines moves ahead with a VND13 trillion capital‑increase package to double its fleet to 200 aircraft by 2035, a move that is expected to intensify a new competitive race in the country’s aviation market. The national flag carrier is also expanding international routes to North America and Europe and investing in fleet modernisation and digital transformation.

Vietjet Air continues to strengthen its position as the leading low-cost carrier, while new entrants such as Sun PhuQuoc Airways focus on premium leisure travel in Phu Quoc. Bamboo Airways, now under the FLC Group, is redesigning its 2026–2030 strategy to reposition the brand. Vietravel Airlines has changed ownership and plans to expand its fleet and international routes. While these newcomers still hold small domestic market shares, all aim to scale up fleet size and route networks.

Industry experts say the era of aggressive price competition is over. Airfares have risen compared to pre-COVID-19 levels and are unlikely to drop due to high fuel costs, currency fluctuations, and geopolitical risks. The aviation industry is now entering a new era of smarter, greener, and higher-quality competition, focusing on modern fleets, strategic route networks, customer service, and cargo operations.

2026 is projected as a breakout year, with GDP growth expected above 10%. The Civil Aviation Authority of Vietnam targets 95 million passengers and 1.6 million tonnes of cargo, up 13% and 15% respectively from 2025. Airport infrastructure, including Long Thanh, Gia Binh, and Phu Quoc expansions, will support this growth, intensifying competition among carriers.

The race in Vietnam’s skies is no longer about fares alone. It has evolved into a battle over fleets, international networks, service quality, and cargo operations, promising a dynamic and diverse domestic aviation market for the decade ahead.

Aviation industry recovers strongly

Vietnam’s aviation industry is flying high again, with passenger numbers expected to hit a record 84 million this year, marking a powerful comeback from the pandemic, according to the Civil Aviation Authority of Vietnam (CAAV).