Vietnam"s air cargo market to remain in the fast lane

The conference on air freight logistics held in HCM City on September 20

Tran Thanh Hai, deputy director of the Ministry of Industry and Trade’s import-export department, said along with the country’s economy, the aviation industry, especially logistics, too has made great progress.

According to the official, Vietnam's air cargo transport currently accounts for a very small volume of exports but 25 percent of value due to the specialised transportation of high-value items such as electronics, certain kinds of seafood and garment and textiles.

Nguyen Cong Bang, deputy director of the Ministry of Transport’s transport department, said according to the International Air Transport Association, Vietnam is the world’s seventh fastest growing aviation market.

“In the vision to 2035, Vietnam's aviation market is considered among the top five markets in terms of growth. The rapid development of the aviation market has strongly boosted the development of tourism and trade and attracted more investment in the country in recent years,” Bang said.

According to him, the market has great potential for development, and offers many opportunities for local and international firms in it.

Meanwhile, Hai spoke about the challenges the air cargo industry faces.

No domestic airliner has aircraft designed to carry goods in bulk. So Vietnamese exporters have to mainly rely on foreign firms for air cargo transport, he said, adding that only Noi Bai and Tan Son Nhat out of more than 40 airports in the country have separate areas for cargo handling.

But despite these challenges, the air transport market has a lot of potential, and both the Government and businesses need to have clear development strategies, according to Hai.

Other delegates said to prepare for the new age of logistics, companies needed IT solutions to cut out redundant processes, be cost-efficient, and anticipate future standards.

Airports must have good technology and infrastructure systems in place to meet air transport demand and take over competitors, they said.

Organised by the Vietnam Logistics Business Association and the Civil Aviation Administration of Vietnam, the event brought together businessmen, key industry leaders and experts from over 350 companies and more than 35 airlines and airports in 30 countries and territories.

The biennial event also featured an exhibition with 50 booths set up by local and foreign logistics services providers.