Illustrative image (Photo: VNA) Hanoi (VNS/VNA) - Vietnam's booming tourism industry has led to growth in the aviationsector, with more routes and airlines creating a new landscape for theindustry.
Accordingto data from the Vietnam National Administration of Tourism (VNAT), the numberof international tourists visiting the country grew from 4.25 million in 2008to 15.5 million in 2018, while the number of domestic tourists rose from 20million in 2009 to 80 million this year. In the last ten years, total revenuefrom tourism has climbed more than ten times from 60 trillion VND (2.59billion USD) in 2008 to 620 trillion VND (26.7 billion USD) in2018, accounting for 7.8 percent of the country's GDP.
Vietnam'saviation market had developed strongly during that time, with average revenuegrowth of 17.4 percent, two times higher than the 7.9 percent average in Asia,according to the International Air Transport Association (IATA).
Datafrom the Civil Aviation Authority of Vietnam show that Vietnamese airlinestransported 50 million passengers last year, five times higher than in 2008. ByDecember 2018, Vietnam's aviation market had 68 foreign airlines from 25countries and territories, along with five domestic airlines.
Overthe past decade, the number of aircraft has from 60 aircraft to 192 aircraft.The flight network has been expanded about three times with 60 domestic and 130international routes currently operating. Together with major airports - Tan SonNhat, Noi Baiand Da Nang, other airportssuch as Van Don, CatBi, Can Tho, LienKhuong and Phu Quochave contributed to the development.
Inthe latest report, IATA also ranked Vietnam the fifth fastest growing aviationmarket in the world and the fastest in Southeast Asia, and forecast averagegrowth of nearly 14 percent in the next five years, reaching 150 millionpassengers by 2035.
Potentialis still huge
Giventhe geographical area and a population of 100 million, there is still room forthe local aviation to grow. Currently, Vietnam has five airlines but onlyVietnam Airlines, Jetstar Pacific, Vietjet Air and newcomer Bamboo Airways havebeen commercially exploited. Vietstar Airline onlyoperates light aircraft.
Comparedto the current 13 regular airlines and nearly 10 charter companies operating inThailand, there is still a lot of room to grow. The number of airlinesoperating in Vietnam is much smaller than Singapore, Malaysia, the Philippines,Cambodia and Myanmar, and five times less than Indonesia.
Ina letter to the Prime Minister in mid-2018, TAB said that despite having only72 percent of Vietnam's population, Thailand had four times more airlines andthree times more international tourists. According to the Vietnam TourismAdvisory Board (TAB), together with low tour prices, the variety of aviationservices was a pull for Thailand.
TABsaid that by expanding the local aviation industry, Vietnam could compete anduse its advantages.
Seeingthe potential of the market, Malaysia and Thailand Air Asia submitted proposalsto establish a low-cost airline in Vietnam. Not commenting on whether it wouldcontinue to apply after four unsuccessful attempts over years, a representativeof Air Asia told Vietnam News: “We will continue to expand our network toconnect Vietnam with ASEAN and beyond.”
Theairline is now running 17 routes connecting Vietnam with international routes.AirAsia sees heavyweight competitors from local airlines in Vietnam which arerapidly expanding their networks into international markets. However, theairline representative told Vietnam News: “The competition offers morebenefits to travellers as they have more choices.”
Themost recently approved airline, Kites Air, is being developed by famous tourismfirm Thien Minh Group. Knowing the market, Kites has set itsbases in Chu Lai and Da Nang, saying it wouldfocus on connecting small and medium airports, especially those with limitedinfrastructure.
Withtested tourism products as well as the largest online travel agency in thedomestic tourism market, iVivu, Kites is expected to help connect ThienMinh Group's products.
Kitesplans to launch flights in the summer next year to serve domestic routes to thecentral and southern regions of Vietnam, then expand the network to Indochina,Southeast Asia and then Northeast Asia.
Similarto Kites, one of the leading travel firms in Vietnam Vietravel also plans tolaunch its own airline in Q1, 2020.
Vu DucBien, General Directorof Vietravel Airlines, said the airline would mostly operate as a charterairline to serve Vietravel's customers as well as other passengers.
Vietravelrecognised the opportunity in the charter market in Vietnam when 51,000 charterflights were recorded in 2017. Since 2015, Vietravel has been working withlocal airlines to provide about 300-400 flights each year, which was far belowthe demand.
AVietravel representative said: “There is more room in the market.”
InApril, Vingroup established Vinpearl Air with registered capital of 1.3trillion VND and plans to buy 30 aircraft to operate on internationalroutes./.
Accordingto data from the Vietnam National Administration of Tourism (VNAT), the numberof international tourists visiting the country grew from 4.25 million in 2008to 15.5 million in 2018, while the number of domestic tourists rose from 20million in 2009 to 80 million this year. In the last ten years, total revenuefrom tourism has climbed more than ten times from 60 trillion VND (2.59billion USD) in 2008 to 620 trillion VND (26.7 billion USD) in2018, accounting for 7.8 percent of the country's GDP.
Vietnam'saviation market had developed strongly during that time, with average revenuegrowth of 17.4 percent, two times higher than the 7.9 percent average in Asia,according to the International Air Transport Association (IATA).
Datafrom the Civil Aviation Authority of Vietnam show that Vietnamese airlinestransported 50 million passengers last year, five times higher than in 2008. ByDecember 2018, Vietnam's aviation market had 68 foreign airlines from 25countries and territories, along with five domestic airlines.
Overthe past decade, the number of aircraft has from 60 aircraft to 192 aircraft.The flight network has been expanded about three times with 60 domestic and 130international routes currently operating. Together with major airports - Tan SonNhat, Noi Baiand Da Nang, other airportssuch as Van Don, CatBi, Can Tho, LienKhuong and Phu Quochave contributed to the development.
Inthe latest report, IATA also ranked Vietnam the fifth fastest growing aviationmarket in the world and the fastest in Southeast Asia, and forecast averagegrowth of nearly 14 percent in the next five years, reaching 150 millionpassengers by 2035.
Potentialis still huge
Giventhe geographical area and a population of 100 million, there is still room forthe local aviation to grow. Currently, Vietnam has five airlines but onlyVietnam Airlines, Jetstar Pacific, Vietjet Air and newcomer Bamboo Airways havebeen commercially exploited. Vietstar Airline onlyoperates light aircraft.
Comparedto the current 13 regular airlines and nearly 10 charter companies operating inThailand, there is still a lot of room to grow. The number of airlinesoperating in Vietnam is much smaller than Singapore, Malaysia, the Philippines,Cambodia and Myanmar, and five times less than Indonesia.
Ina letter to the Prime Minister in mid-2018, TAB said that despite having only72 percent of Vietnam's population, Thailand had four times more airlines andthree times more international tourists. According to the Vietnam TourismAdvisory Board (TAB), together with low tour prices, the variety of aviationservices was a pull for Thailand.
TABsaid that by expanding the local aviation industry, Vietnam could compete anduse its advantages.
Seeingthe potential of the market, Malaysia and Thailand Air Asia submitted proposalsto establish a low-cost airline in Vietnam. Not commenting on whether it wouldcontinue to apply after four unsuccessful attempts over years, a representativeof Air Asia told Vietnam News: “We will continue to expand our network toconnect Vietnam with ASEAN and beyond.”
Theairline is now running 17 routes connecting Vietnam with international routes.AirAsia sees heavyweight competitors from local airlines in Vietnam which arerapidly expanding their networks into international markets. However, theairline representative told Vietnam News: “The competition offers morebenefits to travellers as they have more choices.”
Themost recently approved airline, Kites Air, is being developed by famous tourismfirm Thien Minh Group. Knowing the market, Kites has set itsbases in Chu Lai and Da Nang, saying it wouldfocus on connecting small and medium airports, especially those with limitedinfrastructure.
Withtested tourism products as well as the largest online travel agency in thedomestic tourism market, iVivu, Kites is expected to help connect ThienMinh Group's products.
Kitesplans to launch flights in the summer next year to serve domestic routes to thecentral and southern regions of Vietnam, then expand the network to Indochina,Southeast Asia and then Northeast Asia.
Similarto Kites, one of the leading travel firms in Vietnam Vietravel also plans tolaunch its own airline in Q1, 2020.
Vu DucBien, General Directorof Vietravel Airlines, said the airline would mostly operate as a charterairline to serve Vietravel's customers as well as other passengers.
Vietravelrecognised the opportunity in the charter market in Vietnam when 51,000 charterflights were recorded in 2017. Since 2015, Vietravel has been working withlocal airlines to provide about 300-400 flights each year, which was far belowthe demand.
AVietravel representative said: “There is more room in the market.”
InApril, Vingroup established Vinpearl Air with registered capital of 1.3trillion VND and plans to buy 30 aircraft to operate on internationalroutes./.
VNA
