Vietnam’s aviation market boasts huge potential for expansion. Illustration image (Photo: VNA)Hanoi (VNA) – The Airports Corporation of Vietnam (ACV) has investedheavily in airport infrastructure development as Vietnam’s aviation market boastshuge potential for expansion, according to an official from the corporation.
Deputy head of ACV’s business and market development board Nguyen Quoc Hungsaid that more than 25 trillion VND (over 1 billion USD) has been poured intoexpanding infrastructure over the last five years to better serve the growth beingseen in passenger and cargo traffic.
“During 2021-2025, ACV will need around 120 trillion VND to completeinfrastructure,” he added.
Vietnam’s air transportation market recorded substantial development during2012-2019, he said, from infrastructure to aircraft fleets and flight networks,adding that air passenger and cargo traffic surged by an average of 17 and 13percent, respectively, in the period.
COVID-19 wreaked havoc on the sector, however, with passenger numbers falling41 percent last year against 2019 and air freight 8 percent.
International goods accounted for 80 percent of total air freight, butVietnamese carriers only account for a market share of 12 percent.
According to Hung, Vietnam’s air transport industry has huge potential todevelop thanks to favourable conditions brought about by Government policies andthe 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 sparkeda 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 fastestdevelopment in air passenger numbers during 2018-2040.
Nguyen The Duyet, deputy head of the Vietnam Airlines Corporation’s CargoPlanning and Marketing Board, said local air cargo transport is recovering,with freight up 4.2 percent in January and 9.6 percent in February compared tothe same period of 2019./.
VNA
