Unblock bottlenecks for development of aviation infrastructure say experts

Although Vietnam’s aviation industry has great potential for development, there remain bottlenecks which need to be removed, especially in infrastructure development.
unblock bottlenecks for development of aviation infrastructure say experts

The growth seen in the macro-economy and domestic and international tourism over recent years has helped to boost the aviation sector.

Experts predict that the sector has great potential for further development but there are a number of hurdles which need to be removed.

Tourism and aviation industry strive for common development

According to statistics from the transport sector, in the 2010-2017 period, Vietnam’s air transport achieved an annual growth rate of 16.64%, with a 14% increase in passengers and freight.

In the first half of the year, the volume of passengers increased from 15.2% to 24.6 million, while freight transport soared by 14.8% to 176,400 tons of cargo compared to the same period last year.

In 2017, there were 12.9 million foreign arrivals in Vietnam while 7.5 million Vietnamese people traveled abroad. More than 70 million Vietnamese people chose to travel within the country last year and most passengers used air travel as their mode of transport. At present, Vietnam has four airlines in operation: Vietnam Airlines, Jetstar Pacific Airlines, VietJet Air and VASCO. A new airline, Bamboo Airways, is expected to come into operation this year. Competition among airlines is considered fierce both domestically and internationally.

Mr Nguyen Quy Phuong, head of the Vietnam National Administration of Tourism's Travel Department, said the aviation and tourism industries have so far been lacking inco-development orientations. This is somewhat incongruous when air transport carries the highest number of tourists on an annual basis.

According to the World Tourism Organization, last year, the world was host to more than 1.2 billion passengers, earning a revenue of US$1,330 billion. Of the four world regions, the Asia-Pacific area took the lead in passenger numbers over the first four months of the year. Vietnam has been home to some of the world’s most dynamic development of the past five years.

Mr Phuong said Vietnam’s aviation market has great potential for development, as according to the plan,Vietnam is expected to welcome 10.5 million international visitors annually by 2020.Last year, the figure was already 13 million and the number of visitors is predicted to reach 21 million by 2020.

Transport systems including aviation, railway, road, and maritime vessels will be required to support the growth in international visitors to Vietnam but as air transport makes up the largest proportion, it will require the largest investment.

Vu Thi Thu Thuy, Vice Chairwoman of Quang Ninh People’s Committee said the locality received a boost to its redevelopment thanks to growth in the tourism sector. For example, Quang Ninh welcomed more than 9.5 million passengers last year, contributing 15% of the province’s GDP.

This year, the province is expected to receive 12 million tourists, including 5 million foreign arrivals. Ms Thuy expects the number of visitors to the province to continue to rise on the back of development in the aviation sector,an increase in the number of airlines and improvement in airport infrastructure.

Clogs in the system need to be cleared for progress

Mr Phuong noted that although there are prospects for the development of Vietnam’s aviation sector, the development of infrastructure has not yet met the obvious demand.

Nguyen Thien Thong, former chairman of the aviation technique subject of HCMC University of Technology shared the same viewpoint, proposing that Vietnam needs a national policy for civil aviation.

According to Mr Thong, the aviation sector has had a massive impact on the national economy. For example, a study of the expansion of Tan Son Nhat airport has shown that if a domestic passenger spends US$100 on average, 10,000 passengers will contribute US$1 million. However, international passengers make a greater contribution and their average spend is US$500.

Therefore, Thong commended that Vietnam should have a proper policy to attract investment in the development of aviation sector, especially private investment. At present, 14% of the world’s airports are run by private companies and these private airports carry up to 41% of all international passengers.

Economist Ngo Tri Long said the demands for domestic travel will continue to rise due as the economy develops following the trend for an open and integrated country ready to take advantage of its beautiful landscapes and secure destinations.

The number of visitors to Vietnam is forecast to continue to rise in the time ahead, leading to a surge in international demand. One knock on effect of this will be the bright prospects for development in the transport sector including aviation, maritime, road and railway.

Mr Long said that beyond removing bottlenecks in infrastructure, the growth of the sector depends on other important factors such as experience, aptitude and business methods of investors in order to realize the potential of the aviation industry.

Vice President of the Development Strategy Institute (DSI) of Ministry of Planning and Investment (MPI), Nguyen Van Vinh, said apart from improving infrastructure at airports, hindrances to progress need to be cleared through investment in and the modernization of infrastructure at each airport to connect airports to regional destinations.

Mr Vinh said that while private sector investment is needed forthe development of aviation infrastructure, the greatest advantage would come from institutional reform and clarifying the responsibilities of the state and investors for their mutual benefit.

Source: VOV

Related News

Leaders of aviation firms to be disciplined if employees committed wrongdoings

Leaders of aviation firms to be disciplined if employees committed wrongdoings

The Civil Aviation Administration of Vietnam (CAAV) has just released Directive 1480 on enhancing smuggling and commercial fraud prevention among aviation employees.
Further improving National Single Window, automated system for customs management

Further improving National Single Window, automated system for customs management

VCN - In addition to achievements and facilitating import and export activities, the implementation of the Aviation National Single Window and the automated system for Customs management and supervision still has shortcomings, as well as technical and operational problems.
Seizing the opportunity to develop air logistics services

Seizing the opportunity to develop air logistics services

VCN - Talking to a reporter from Customs Magazine, Mr Dao Trong Khoa, Vice Chairman of the Vietnam Logistics Business Association, said that the State must have policies to encourage Vietnamese businesses to boldly seize opportunities to develop air logistics services, reaching the world level.
Which direction to develop the aviation logistics market?

Which direction to develop the aviation logistics market?

VCN - The air freight logistics market in Vietnam is quite large and full of potential, but the market share of Vietnamese enterprises is still too small, leading to high costs.

Latest News

Saigontex 2023 attracts over 1,300 domestic, foreign businesses

Saigontex 2023 attracts over 1,300 domestic, foreign businesses

More than 1,300 businesses from 21 countries and territories are participating in the Vietnam Textile & Garment Industry Expo (Saigontex) 2023, the leading exhibition of the industry in Southeast Asia, which opened in Ho Chi Minh City on April 5.
Mong Cai international border gate sees strong recovery

Mong Cai international border gate sees strong recovery

The Mong Cai international border gate in the northern province of Quang Ninh has become vibrant as before the pandemic, showing a positive sign in the economic recovery of Mong Cai city in particular and Quang Ninh province in general.
Vietnam a potential market for French businesses, investors: experts

Vietnam a potential market for French businesses, investors: experts

French businesses should innovate their approach, enhance their understanding of culture and language, and make changes to adapt to Vietnam's transitioning economy in order to expand their market share and boost investment in the Southeast Asian nation, said Dr. Jean-Philippe Eglinger, the founder of the Viet Phap Strategies.
Import and export turnover across Cao Bang prospers but still exists difficulties

Import and export turnover across Cao Bang prospers but still exists difficulties

VCN – After China resumes trade, Cao Bang province's import and export activities see remarkable prosperity.

More News

Cashew industry strives to "get on the shelves of world supermarkets"

Cashew industry strives to "get on the shelves of world supermarkets"

VCN - Although holding the number one position in the world in exporting cashew kernels for many years, the position of Vietnam's cashew industry in the world cashew value chain is very small because it mainly exports kernels with preliminary treatment.
HCM City’s industrial production index down 0.9% in Q1

HCM City’s industrial production index down 0.9% in Q1

Ho Chi Minh City’s Index of Industrial Production (IIP) in the first quarter of 2023 declined by 0.9% compared to the same period last year, the municipal Department of Industry and Trade reported at a press conference on April 3.
Fisheries exports estimated at 1.85 billion USD in Q1

Fisheries exports estimated at 1.85 billion USD in Q1

Fisheries export value was estimated at 1.85 billion USD in the first quarter (Q1) of this year, a fall of 27% compared to the same period last year due to lower consumption and import demand under the impacts of inflation and economic recession, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Quang Ninh aims to attract quality FDI inflows

Quang Ninh aims to attract quality FDI inflows

The northern coastal province of Quang Ninh has strengthened measures to attract quality foreign direct investment (FDI) inflows, especially from big names in the processing-manufacturing industry.
Exports face many difficulties

Exports face many difficulties

VCN - In the first months of 2023, the absence of export orders plus the downward trend in commodity prices have slowed down trade activities.
Manufacturing enterprises increase their competitiveness thanks to digital transformation

Manufacturing enterprises increase their competitiveness thanks to digital transformation

VCN - Overcoming difficulties in 2023 requires manufacturing enterprises to self-improve and innovate. Digital technology is one of the effective solutions to help manufacturing businesses grow and compete.
32nd Việt Nam Expo promises to boost business linkages

32nd Việt Nam Expo promises to boost business linkages

The 32nd Việt Nam International Exhibition (Vietnam Expo) will take place in Hà Nội from April 5-8 with the participation of more than 500 domestic and foreign enterprieses, the event’s organisers have announced.
Prevention of price risks before news that Indonesia increases rice imports in reserve

Prevention of price risks before news that Indonesia increases rice imports in reserve

VCN - In response to demand signals from key markets such as Indonesia and the Philippines, the Import-Export Department (Ministry of Industry and Trade) suggested that rice exporters actively monitor the market situation and fully assess the opportunities as well as risks to build a trading plan.
Japanese investors highly appreciate Vietnamese property market

Japanese investors highly appreciate Vietnamese property market

Representatives from around 180 Japanese businesses and investors on April 1 attended a Tokyo workshop on Vietnamese real estate, during which many of them highly appreciated the potential of Vietnam’s property market.
Read More

Your care

The system has not recorded your reading habits.

Please Login/Register so that the system can provide articles according to your reading needs.

Latest Most read
Saigontex 2023 attracts over 1,300 domestic, foreign businesses

Saigontex 2023 attracts over 1,300 domestic, foreign businesses

More than 1,300 businesses from 21 countries and territories are participating in the Vietnam Textile & Garment Industry Expo (Saigontex) 2023, the leading exhibition of the industry in Southeast Asia, which opened in Ho Chi Minh City on April 5.
Mong Cai international border gate sees strong recovery

Mong Cai international border gate sees strong recovery

The Mong Cai international border gate in the northern province of Quang Ninh has become vibrant as before the pandemic, showing a positive sign in the economic recovery of Mong Cai city in particular and Quang Ninh province in general.
Vietnam a potential market for French businesses, investors: experts

Vietnam a potential market for French businesses, investors: experts

French businesses should innovate their approach, enhance their understanding of culture and language, and make changes to adapt to Vietnam's transitioning economy in order to expand their market share and boost investment in the Southeast Asian nation, said Dr. Jean-Philippe Eglinger, the founder of the Viet Phap Strategies.
Import and export turnover across Cao Bang prospers but still exists difficulties

Import and export turnover across Cao Bang prospers but still exists difficulties

VCN – After China resumes trade, Cao Bang province's import and export activities see remarkable prosperity.
Cashew industry strives to "get on the shelves of world supermarkets"

Cashew industry strives to "get on the shelves of world supermarkets"

VCN - Looking back to 2022, while the export turnover of the cashew industry reached US $ 3.08 billion, the import turnover of raw cashews consumed US $ 2.678 billion.
Mobile Version