"Explosion" of aviation retail with new services

	Vietnam Customs directs to follow the progress of aviation projects closely
	Removing obstacles in the management of aviation infrastructure assets

A duty-free store of IPPG Group.

IPPG joins hands with CDFG

After nearly a year in Vietnam to research the market and locations to open duty-free stores, China Duty Free Group (CDFG) has decided to join hands with Vietnamese enterprise, Inter-Pacific Group (IPPG) to develop a chain of duty-free stores. At the same time, CDFG also works with partners and Chinese travel agencies to plan to bring customers to shop at duty-free stores in Vietnam.

After surveying and negotiating, on November 5, 2024, within the framework of the World's Leading Aviation Retail Trade Forum, IPPG and CDFG officially signed a memorandum of understanding on strategic cooperation to develop a chain of duty-free stores.

According to experts, the cooperation of the two "giants" in the aviation retail industry will be an opportunity to attract international visitors to Vietnam. Because CDFG operates in the field of duty-free travel retail, owns comprehensive duty-free licenses, and has established long-term cooperative relationships with more than 1,200 famous global brands. Currently, this group has more than 200 duty-free stores in China, Hong Kong, Macau, Taiwan (China) and many other countries around the world.

Meanwhile, IPPG is also a business participating in the branded fashion business since 2005 and is a partner of famous brands in the world. In addition, IPPG also builds a system of duty-free stores and non-aviation retail services. IPPG is the first enterprise to initiate the formation of the duty-free business in Vietnam. IPPG has invested in many border gates and airports with modern duty-free store projects that are on par with airports in the region, as well as contributing to attracting tourists and increasing tourism trade.

Sharing about this cooperation, Mr. Johnathan Hanh Nguyen, Chairman of IPPG, emphasized that IPPG, with its pioneering role in investing and developing duty-free retail in Vietnam, has contributed to enhancing Vietnam's attractiveness in the international travel retail industry. With more than 1,000 retail stores and partners of 138 famous brands, IPPG not only expands its network of stores across Vietnam but also strongly develops duty-free store chains at border gates, inner cities and airports.

“With the growth of the tourism industry, Vietnam is becoming an ideal destination for aviation retail trade. The cooperation agreement with CDFG will contribute to creating a solid foundation for the sustainable development of Vietnam's tourism trade in the future; continuing to open up many opportunities for cooperation in developing bilateral tourism trade between China and Vietnam” - Mr. Johnathan Hanh Nguyen shared.

Not only the above project, during the recent 2024 World Leading Aviation Retail Trade Forum (Trinity Forum 2024), many domestic and international enterprises met and discussed to sign cooperation agreements on aviation services and airport retail. Among them are many new services, international brands present at Tan Son Nhat T3 terminal and Long Thanh airport, meeting the needs of customers.

Expectations from Long Thanh International Airport Services

According to experts, Vietnam, with its strategic location in Asia and the growth rate of tourism, the increase of the middle class, the Government's efforts to improve airport infrastructure, etc., will not only create strong momentum for economic development, but also open up many new opportunities for the retail industry and non-aviation services, promoting Vietnam to become a potential destination for the aviation trade industry.

Mr. Nguyen Duc Hung, Deputy General Director of ACV, said that in the period of 2023-2024, airports in Vietnam will serve more than 113 million passengers per year. Of which, international passengers account for 30% of the total number of passengers. Revenue from non-aviation services of ACV in 2023 will reach about VND 3,686 billion, accounting for about 19% of total revenue. "Focusing more on investing and developing non-aviation business services will contribute significantly to developing revenue sources to reach the target of 30-40% of total revenue when diversifying retail trade, duty-free, food, entertainment, etc. to meet passenger needs," said Mr. Nguyen Duc Hung.

In the future, Long Thanh International Airport will become the largest gateway airport in Vietnam. Mr. Truong Trung Thanh, Deputy Director of Operation Solutions, Long Thanh International Airport (ACV), said that Long Thanh International Airport is considered a commitment of the Vietnamese aviation industry to international development. This is a large-scale aviation project, expected to welcome 100 million passengers by 2030 and continue to develop sustainably in each phase; applying artificial intelligence in services, creating a friendly environment, helping passengers have the smoothest and most satisfying experiences.

“Through the services designed and introduced here, Long Thanh International Airport will be the gateway to promote Vietnamese culture to international passengers. We are not only building an airport but also a bridge connecting Vietnam with the world,” Mr. Thanh emphasized.

After Long Thanh International Airport is completed in 2026, along with 22 large and small airports nationwide, it will be the “ripe” time for Vietnam to turn its dream into reality, making Vietnam a powerful developed country by 2045.

Mr. Nguyen Trung Khanh, Director of the Vietnam National Administration of Tourism, said that in 2024, our country's tourism industry aims to welcome 17-18 million international visitors, basically recovering to pre-pandemic levels; serving 110 million domestic tourists and total tourism revenue reaching about 34 billion USD. Mr. Khanh commented that currently, Vietnamese tourism is paying much attention to supporting services, including shopping services, which contribute significantly to the tourist experience, increase the competitiveness of the destination and increase revenue growth.