The Airports Corporation of Vietnam (ACV) has invested heavily in airport infrastructure development as Vietnam’s aviation market boasts huge potential for expansion, according to an official from the corporation.
Deputy head of ACV’s business and market development board Nguyen Quoc Hung said that more than VND25 trillion (over US$1 billion) has been poured into expanding infrastructure over the last five years to better serve the growth being seen in passenger and cargo traffic.
“During 2021-2025, ACV will need around VND120 trillion to complete infrastructure,” he added.
Vietnam’s air transportation market recorded substantial development during 2012-2019, he said, from infrastructure to aircraft fleets and flight networks, adding that air passenger and cargo traffic surged by an average of 17% and 13%, respectively, in the period.
COVID-19 wreaked havoc on the sector, however, with passenger numbers falling 41% last year against 2019 and air freight 8%.
International goods accounted for 80% of total air freight, but Vietnamese carriers only account for a market share of 12%.
According to Hung, Vietnam’s air transport industry has huge potential to develop thanks to favourable conditions brought about by Government policies and the country’s participation in international organisations such as ASEAN, APEC, and the WTO, and several free trade agreements.
The boom in e-commerce and increasing demand for online shopping have also sparked a surge in freight volumes.
Hung remains upbeat about air transport, as Airport Council International (ACI) forecasts that Vietnam will be one of ten countries with the fastest development in air passenger numbers during 2018-2040.
Nguyen The Duyet, deputy head of the Vietnam Airlines Corporation’s Cargo Planning and Marketing Board, said local air cargo transport is recovering, with freight up 4.2% in January and 9.6% in February compared to the same period of 2019.