Google

ASEANAFFAIRS
Sign up | Log in

    ASEAN PROFILES

  ASEAN KEY DESTINATIONS

Home>>Daily News>>Vietnam>>Avaition>>Aviation sector opens new opportunities for investment

NEWS UPDATES Asean Affairs   February 15, 2018  












Aviation sector opens new opportunities for investment


Viet Nam needs more airlines, besides the four current ones, to meet the increasing demand in the aviation market.

The Ministry of Transport (MoT) has completed a draft plan to expand the aviation sector for the 2018-20 period with a vision to 2030 and is currently collecting feedback from related agencies before submitting the draft to the Prime Minister.

According to MoT, the aviation market’s annual growth rate will be 16 per cent from now to 2020 and 8 per cent from 2020 to 2030. Local airlines are expected to serve 64 million passengers by 2020 and 131 million passengers by 2030. MoT aims to expand the airlines’ fleet to 220 planes by 2020 and 400 planes by 2030.

Viet Nam currently has seven aviation companies, out of which only four are commercial airlines, with 180 planes. The rate of customers travelling by air increased from 0.5 per cent in 2012 to 0.8 per cent in the first half of 2016. This shows that more people are using airlines.

In recent years, Vietnamese people’s tendency to travel abroad by air has increased, especially of visitors.

According to statistics of the Việt Nam National Administration of Tourism, there were 6.5 million Vietnamese travelling abroad in 2016. This figure is expected to surge by 9.5 per cent within the next five years.

Leaders of local airlines assess that the country needs some 10 airlines to meet the demand and make it a healthy competitive market.

However, aviation investments face obstacles in both planning and administrative procedures. It takes between three to four years to establish a new aviation company.

The aviation plan must be compatible with the State’s master plan and must be reviewed by MoT as well as the Ministry of Planning and Investment at the same time. That is why many companies, such as Vietstar Airlines, still have not started commercial flights.

The local authorities postponed issuing permits to Vietstar Airlines because of overloading at Tan Sơn Nhat Airport. Tân Cảng and Việt Bamboo Airlines still need to submit their documents to the Ministry of Planning and Investment.

According to experts, the aviation sector’s planning adjustment this year will help boost the investment process.

New opportunities

At a meeting in November 2017, Deputy PM Trịnh Đình Dũng noted that the aviation sector’s planning adjustment was necessary to create a legal framework to continue developing the market in the future.

Catching up with the trend, some private firms have announced their plans to invest in airports and airlines. They include Vietstar Airlines, Tân Cảng and Bamboo Airways of Việt Bamboo Airlines Company, a subsidiary of FLC Group.

FLC said priority would be given to localities where it has built major tourist complexes, including Quang Ninh Province and Hải Phong City in the north, Thanh Hoa and Bình Dinh provinces in the central region, and Nha Trang City (Khánh Hòa Province) and Phú Quốc Island (Kien Giang Province) in the south.

Bamboo Airways will be a “hybrid” airline, which will blend low-cost traits with those of traditional or full-service carriers.

FLC has also invested in infrastructure for aviation operations, such as upgrading Phù Cát Airport in Quy Nhon City and key roads connecting the airport to Nhơn Hội Economic Zone.

Currently, the Bamboo Airways is completing infrastructure to bring its first flight into operation in 2019.

Dang Tat Thang, general director of Viet Bamboo Airlines Company, said the company had signed a memorandum of understanding to buy the latest version of Airbus A321 Neo from Airbus Group for the airline’s operations.



Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates
Contact: marketing@aseanaffairs.com

Comment on this Article. Send them to  your.views@aseanaffairs.com

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
 
or
submit your comment in the box below



  Today's  Stories                       February 15, 2018 
• Singapore economy clocks faster-than-expected growth of 3.6% in 2017 Subcribe: Asean Affairs Global Magazine
• Govt earmarks Rp 36.53b for Idul Fitri travel support Subsribe Now !
• PHL, Japan to sign Metro Manila subway loan deal in March
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Indonesia remains lucrative market for Singapore tourism 
• Aviation sector opens new opportunities for investment
Asean Analysis                  February 8,  2018
• Asean Analysis February 8, 2018
QUESTIONS FOR TRIPALLY FROM WWW.ASEANAFFAIRS.COM
Advertise Your Brand

Asean Stock Watch   Febriaru 14,  2018

• Asean Stock Watch-February 14, 2018
The Biweekly Update
• The Biweekly Update  October 27, 2017

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan

ASEAN  ANALYSIS

This year in Thailand-what next?


AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

 


Name

Name


Email

Email



1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2017 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand
asean@aseanaffairs.com