Private sector expected to build sustainable aviation industry

Vietnam’s aviation industry has seen its strongest growth in the past decades with double-digit growth set in five consecutive years, but it is still faced with sustainable development issues.
Private sector expected to build sustainable aviation industry ảnh 1Illustrative image (Photo: VNA)
Binh Dinh (VNS/VNA) - Vietnam’saviation industry has seen its strongest growth in the past decades withdouble-digit growth set in five consecutive years, but it is still facedwith sustainable development issues.

This was the theme discussed byaviation officials and experts at a conference to seek solutionsfor sustainable aviation development held recently by Giao Thong newspaperin the central coastal province of Binh Dinh.

The network of domestic airlines has expandedrapidly with the participation of national carrier Vietnam Airlines and budgetcarriers Viejet Air, Jetstar Pacific, Bamboo Airways and Vietnam AirServices Company (Vasco).

According to Deputy Director of the CivilAviation Authority of Vietnam Pham Van Hao, Vietnam Airlines had been the maincarrier, but now the likes of private enterprises such as Vietjet and BambooAirways had stepped in.

“This has changed both quality and quantity. Vietnam'sair route network has also experienced many changes and now has nearly 60domestic routes and 130 international routes compared to 25 and 54 routes in2008,” Hao said.

Hao said in 2008, international flights mainlyflew through Noi Bai, Da Nang and Tan Son Nhat airports. They arenow connected to many other airports such as Cat Bi, Can Tho, Cam Ranh,Lien Khuong and Phu Quoc. “This has created relatively solid and sustainabledevelopment,” he said.

“I want to emphasise that aviation must not onlycomply with domestic regulations but also internationally. With aviation,safety must come first. If you're just running after profit, you won't be ableto ensure safety regulations, and you'll run into trouble. The history ofaviation development has proven this. Safety not only determines theexistence of an airline but also the honour and prestige of the nation,” Hao said.

He said the aviation picture in Vietnam wasbeautiful at present thanks to the participation of the privatesector, such as Bamboo Airways, SunGroup and Van Don Airport, bringing manybenefits to the community and passengers. Fair competition in aviationwould create benefits for both the community and the nation's reputation.

Deputy Director of the Ministry of Transport’sPlanning and Investment Department Tran Minh Phuong said the demand forair travel had followed the country’s economic development. 

Phuong said the ministry had advised the PrimeMinister to adjust the aviation development plan.

“We forecast double-digit growth will continueuntil 2020 and gradually fall off after that. Of course, this is a predictablenumber that will be the basis and orientation for infrastructuredevelopment so that airlines can plan to invest and exploit synchronously andeffectively.”

Do Duc Tu, a representative of the Ministry ofPlanning and Investment, said the most specific proof of the ‘hot’ developmentof aviation was at Tan Son Nhat Airport. The airport had been overloadeddue to weak connections among traffic, railway stations and the apron. “On oneflight to HCM City, we had to circle for about an hour before we landed.”

“The ‘hot’ development of the sector is positivebecause this is an opportunity to develop aviation and the air transportbusiness. However, the growth rate is leaving airport infrastructurebehind,” Tu said.

"Another problem is the human factor.Airlines could mobilise capital to establish an airline and signcontracts to buy large aircraft, but human resources are a matter ofconcern. We have the facilities but there must be skilled operators toensure absolute safety," he said.

Economist Vo Tri Thanh said the most importantthing in this area was that the State’s thinking about the role of the privateeconomy and market economy had changed, and the private sector could nowdevelop to its strengths.

He said in the field of infrastructureinvestment, the private sector’s participation had helped implement complicatedprojects that required high-tech and strict standards such as airports andtunnels.

“When participating in free trade agreements,private or foreign individuals are equal in the bidding for Stateinvestment projects,” Thanh said.

"We need to encourage the participation ofthe private sector. All methods such as subsidies and social programmes must betransparent. That is the way to operate smoothly, turning to a healthy andcompetitive market economy."

Director of the Civil Aviation Authority ofVietnam (CAAV) Lai Xuan Thanh said Vietnam was one of the fastest growingaviation markets in the world. The development of aviation was always under thecontrol of the State, so it would be implemented following the aviationtransport development strategy approved by the Prime Minister.

Under the strategy, about 104million passengers will use air routes by 2020. The figure will reach308 million by 2030.

“This development is entirely in the forecasts,orientation and plans of the State,” Thanh said.-VNS/VNA
VNA

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