The Ministry of Transport plans to spend 350.5 trillion VND (15.4 billion USD) to develop the country’s aviation industry from now until 2030 (Photo: baodautu.vn)Hanoi (VNA) - The Ministry of Transport plans tospend 350.5 trillion VND (15.4 billion USD) to develop the country’s aviationindustry from now until 2030.
The move is aimed at creating a foothold among the top fourleading nations in air traffic in ASEAN.
The proposal is part of the ministry’s revised draft onaviation transportation development, which was recently sent to the Governmentfor approval.
Of the total sum, 84.4 trillion VND will be invested until2020.
Under the revised plan, the aviation industry will exploit 23airports with 144 million passengers annually by 2020 and 28 airports with 308million passengers by 2030.
Deputy Minister of Transport Nguyen Van Cong said the draftwas updated on the basis of the scientific objections raised by the Science andAviation Technology Association and Aircraft Design and Consultancy Company Ltdat the request of Deputy Prime Minister Trinh Dinh Dung.
“A revision in the plan is needed, creating a legal frameworkto continuously develop aviation transportation in future and ensuringsustainability and safety,” said Dung.
The current plan was approved by the Prime Minister in 2009.After many years of implementation, the scale of aviation market hasprogressed, but it still ranks the fifth in ASEAN. It has not yet attractedgiant airlines to open direct routes to Vietnam, and its infrastructure in anumber of airports fail to meet the increasing demand, resulting inovercrowding.
Under the draft plan, Vietnam’s aviation market is expectedto be among the top four leading nations in ASEAN in terms of the output oftransportation by 2030 in association with the upgrading of Noi Bai, Tan Son Nhatand Da Nang international airports and the opening of three logistic centres inVan Don, Chu Lai and Long Thanh.
The ministry predicts that the transport of passengers viadomestic airlines will increase at an average rate of 16 percent annually fromnow until 2020 and by eight percent during 2020-30. Meanwhile, the transport ofgoods is expected to grow at an annual rate of 18 percent from now until 2020and at 12 percent annually during 2020-30.
The domestic airlines are expected to reach a volume of 64million passengers every year by 2020 and 131 million annually by 2030,according to the draft.
This growth rate is two to four percent higher than thecurrent plan and is also higher than the average growth of the global aviationindustry.
Many experts believe that the ministry’s prediction isunreasonable, as the International Civil Aviation Organisation, Boeing andAirbus estimate the air traffic growth at a rate of some 1.6 times thecountry’s gross domestic product growth.
In this regard, Deputy Director of Civil Aviation Authorityof Vietnam, Vo Huy Cuong, said that “in the period from 2010-17, thiscoefficient ranged from 1.5 to four times in Vietnam, mostly between two and2.5 times, so the ministry’s forecast is appropriate.”
In terms of aircraft fleet development, the draft planestimates the number of aircraft to grow by more than 220 units by 2020 and 400units by 2030, increasing by 70-100 units compared to the current plan.
There are currently four licensed airlines -- VietnamAirlines, Jetstar Pacific Airlines, Vietjet and Vietnam Air Services Company.To open opportunities for new investors to enter the aviation market, there’s aneed to increase the capacity of airports and expand the scale of aircraftfleet in the next three years.
According to Decree 118/2015/NĐ-CP issued by the Governmentin 2015 on detailed regulations and guiding the implementation of a number ofarticles on the Law on Investment, one of the requirements to receiveinvestment certification is that the project must be suitable with the aviationindustry’s development planning.
That is why many airlines such as Vietstar Air and BambooAirlines, have failed to get licences although they have met the demand oncapital and flying capacity.
In April last year, the Government announced it would notconsider approval of Vietstar Air’s investment plan on aviation transportproject and grant it business licence unless the firm completes buildingadditional terminals and airfield in accordance with the planning on Tan Son NhatInternational Airport, which has been approved by the Prime Minister.
Deputy PM Dung said to raise investment and business resultsand help enterprises develop in a healthy and sustainable manner, the approvalfor investment and granting of business licences in the field of aviation mustbe carefully considered and should be in accordance with the law to ensureaviation safety and security in every facet.
General Director of Vietstar Air Pham Trinh Phuong told baodautu.vn that if the draft plan was approved by theGovernment, his firm would consider airport adjusting to seek the opportunityto operate sooner.-VNA
The move is aimed at creating a foothold among the top fourleading nations in air traffic in ASEAN.
The proposal is part of the ministry’s revised draft onaviation transportation development, which was recently sent to the Governmentfor approval.
Of the total sum, 84.4 trillion VND will be invested until2020.
Under the revised plan, the aviation industry will exploit 23airports with 144 million passengers annually by 2020 and 28 airports with 308million passengers by 2030.
Deputy Minister of Transport Nguyen Van Cong said the draftwas updated on the basis of the scientific objections raised by the Science andAviation Technology Association and Aircraft Design and Consultancy Company Ltdat the request of Deputy Prime Minister Trinh Dinh Dung.
“A revision in the plan is needed, creating a legal frameworkto continuously develop aviation transportation in future and ensuringsustainability and safety,” said Dung.
The current plan was approved by the Prime Minister in 2009.After many years of implementation, the scale of aviation market hasprogressed, but it still ranks the fifth in ASEAN. It has not yet attractedgiant airlines to open direct routes to Vietnam, and its infrastructure in anumber of airports fail to meet the increasing demand, resulting inovercrowding.
Under the draft plan, Vietnam’s aviation market is expectedto be among the top four leading nations in ASEAN in terms of the output oftransportation by 2030 in association with the upgrading of Noi Bai, Tan Son Nhatand Da Nang international airports and the opening of three logistic centres inVan Don, Chu Lai and Long Thanh.
The ministry predicts that the transport of passengers viadomestic airlines will increase at an average rate of 16 percent annually fromnow until 2020 and by eight percent during 2020-30. Meanwhile, the transport ofgoods is expected to grow at an annual rate of 18 percent from now until 2020and at 12 percent annually during 2020-30.
The domestic airlines are expected to reach a volume of 64million passengers every year by 2020 and 131 million annually by 2030,according to the draft.
This growth rate is two to four percent higher than thecurrent plan and is also higher than the average growth of the global aviationindustry.
Many experts believe that the ministry’s prediction isunreasonable, as the International Civil Aviation Organisation, Boeing andAirbus estimate the air traffic growth at a rate of some 1.6 times thecountry’s gross domestic product growth.
In this regard, Deputy Director of Civil Aviation Authorityof Vietnam, Vo Huy Cuong, said that “in the period from 2010-17, thiscoefficient ranged from 1.5 to four times in Vietnam, mostly between two and2.5 times, so the ministry’s forecast is appropriate.”
In terms of aircraft fleet development, the draft planestimates the number of aircraft to grow by more than 220 units by 2020 and 400units by 2030, increasing by 70-100 units compared to the current plan.
There are currently four licensed airlines -- VietnamAirlines, Jetstar Pacific Airlines, Vietjet and Vietnam Air Services Company.To open opportunities for new investors to enter the aviation market, there’s aneed to increase the capacity of airports and expand the scale of aircraftfleet in the next three years.
According to Decree 118/2015/NĐ-CP issued by the Governmentin 2015 on detailed regulations and guiding the implementation of a number ofarticles on the Law on Investment, one of the requirements to receiveinvestment certification is that the project must be suitable with the aviationindustry’s development planning.
That is why many airlines such as Vietstar Air and BambooAirlines, have failed to get licences although they have met the demand oncapital and flying capacity.
In April last year, the Government announced it would notconsider approval of Vietstar Air’s investment plan on aviation transportproject and grant it business licence unless the firm completes buildingadditional terminals and airfield in accordance with the planning on Tan Son NhatInternational Airport, which has been approved by the Prime Minister.
Deputy PM Dung said to raise investment and business resultsand help enterprises develop in a healthy and sustainable manner, the approvalfor investment and granting of business licences in the field of aviation mustbe carefully considered and should be in accordance with the law to ensureaviation safety and security in every facet.
General Director of Vietstar Air Pham Trinh Phuong told baodautu.vn that if the draft plan was approved by theGovernment, his firm would consider airport adjusting to seek the opportunityto operate sooner.-VNA
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