Launch of new airline matches potential of the market

VCN- While infrastructure bottlenecks have not been resolved, why is the aviation industry still granting licenses to newly established airlines? And will the aviation market still have room to expand? According to Dinh Viet Thang, Director of Vietnam Aviation Administration, the aviation market will continue to grow at approximately two digits in the next 5-10 years.
tin nhap 20191219160646 More airlines join market, create infrastructure bottlenecks
tin nhap 20191219160646 Two Vietnamese among top 25 Asian ‘Power Businesswomen’
tin nhap 20191219160646 Does the aviation sector change with the entry of a new airline?
tin nhap 20191219160646
Mr. Dinh Viet Thang.

Could you please give your opinion on the development of the aviation industry?

The fact that the aviation market of Vietnam has developed rapidly and impressively in recent years has brought a lot of new points, contributing to the economy and society. Since 2008, after 10 years, our aviation market has increased fivefold.

The development of the aviation market in Vietnam has also greatly facilitated people to travel with good services, reasonable prices and I think according to the geographical area and our forecast with a population of nearly 100 million people, with an economic growth rate of 6-7%/year, the aviation market will continue to grow at approximately two digits in the next 5-10 years.

Recently, the aviation market hasgrown rapidly, with the emergence of a series of new airlines, so what measures has the authority taken to create a safe and sustainable development environment?

Even the concept of sustainability includes the concept of safety. Sustainability consists of the following elements: First, sustainability is development that must be within the framework of the economy, within the planning framework and within the framework of the State's policies. The second is that if the aviation market wants to be sustainable, it must develop harmoniously and evenly between the factors from synchronous transportation to infrastructure to human resources. Thirdly, the sustainable development of the aviation industry must go hand in hand with absolute assurance on security and safety. Fourthly, in order to sustainably develop the aviation market, the state must proactively anticipate the development and introduce management policies and measures to ensure the aviation market develops in a sustainable manner and particularly ensure healthy competition between airlines.

So, in your opinion, will the "pie" of the aviation market grow bigger and the role of the state and especially the role of the Aviation Department in this matter?

To develop sustainably, it must ensure healthy competition and ensure the market meets the needs of airlines. As I said above, I am sure the aviation market will continue to thrive in the next 5-10 years and when we agree with the introduction of new airlines we also take into account. The current ability of supply and growth of airlines plus the growth of airlines in the futureisensured within the framework of the market.

Looking at the numbers, like in the US, the population is over 300 million, while the aviation market is more than 800 million passengers/year. Vietnam has 87 million people, but the aviation market has only 78 million passengers per year, we currently have 212 aircraft to serve passenger and cargo transport. It is forecast that by 2025, Vietnam's aviation market will reach about 150 - 180 million passengers. With the current growth rate, we forecast the aviation market will grow by 9-10% in the next five years. By 2025-2026, our aviation market will have about 150-160 million passengers per year. To ensure we meet this demand, we must increase the number of aircraft from more than 200 to 400 aircraft by 2025-2026. Therefore, the potential for developing the aviation market is still great. With such potential, the establishment of new airlines is an inevitable trend.

The new airlines joining, with the number of their aircraft, is also to serve the growth of the marketand also according to the Prime Minister's plan that by 2030 the fleet must reach 400 aircraft. And according to my prediction, by 2025-2026 we will have secured the Prime Minister's plan.

tin nhap 20191219160646
By 2025-2026, theaviation market will have about 150-160 million passengers per year.

It is obvious that the increase in the aircraft fleet will put pressure on Vietnam's aviation infrastructure. So how do we solve this problem, sir?

Infrastructure is a problem that we need to balance and this is also the biggest bottleneck of the aviation market today. Currently we talk about infrastructure, including our major airports.If speaking about our airport infrastructure across the country, many airports are not at full load, while many airports are also undergoingrenovation and expansion plans. The infrastructure here is mainly from the Tan Son Nhat Airport, however, the Ministry of Transport has now issued a medium-term plan to develop all 22 airports,plus Long Thanh International Airport has just been approved by the National Assembly. I hope that with the Ministry of Transport submitting to the Prime Minister to amend Decree No. 102/2015 / ND-CP on the management and operation of airports, including recommendations on mechanisms and policies, the investment procedure mechanism and the bottlenecks will be removed and we will have the opportunity to invest heavily in aviation infrastructure.

The airlines are very impatientto have favorable conditions to invest in the aviation industry, but the mechanism is still entangled. Will the amendment of Decree 102 open up competition opportunities for airlines?

Looking at the recent reality, we also have to recognize the problems related to mechanisms and policies because many of our laws mention this issue and there are regulations that are not really uniform, including the Investment Law, Construction Law, Aviation Law to Land Law, Bidding Law. We have identified these shortcomings and have made specific recommendations in revising Decree 102 to clarify these issues, creating a mechanism for coordination among sectors and localities in investing in the airport sector. Just as we will create an equal, open and transparent mechanism so that private investors can participate in investment in accordance with the policy of socialization of the state.

Thank you Sir!

By Xuan Thao/Huu Tuc

Related News

Improve processes and enhance experience to rebuild trust in life insurance

Improve processes and enhance experience to rebuild trust in life insurance

VCN - In Vietnam, the space and potential of the life insurance industry is still very large, so it is necessary to focus on implementing new solutions, improving product quality, and helping the market develop sustainably.
Pangasius exports are forecasted to bounce back at the end of the year

Pangasius exports are forecasted to bounce back at the end of the year

VCN - It is forecasted that pangasius exports is forecasted to be better from the third and fourth quarters of 2024, leading to the uptrend being adjusted to increase by at least about 10% compared to the current price.
Responding to the market, export enterprises are willing to spend more on "green practices"

Responding to the market, export enterprises are willing to spend more on "green practices"

VCN - Export businesses spend the most to invest in greening activities to target markets in developed countries, where environmental standards are higher and consumers are more aware of the environmental issue.
The fruit and vegetable industry has plenty of room for export in the five largest markets

The fruit and vegetable industry has plenty of room for export in the five largest markets

VCN - Vegetables and fruits are products with great potential for export, because import demand in the world market is always high. Although it is a key export product, the market share of Vietnamese vegetables and fruits still accounts for a small proportion in the world's five largest markets.

Latest News

Imports and exports achieve US$239 billion by the end of April

Imports and exports achieve US$239 billion by the end of April

VCN - The import-export turnover in April witnessed a slight decrease compared to the previous month but it is still high with more than US$60 billion.
Spending more than US$31 billion for importing computers and electronic products in 4 months

Spending more than US$31 billion for importing computers and electronic products in 4 months

VCN - Computers, electronic products, and components are the group of imported commodities with the largest scale in the country.
Multi-dimensional picture of textile and garment enterprises

Multi-dimensional picture of textile and garment enterprises

VCN - Despite a quite positive start in the first quarter of 2024, the textile and garment industry has still faced many challenges from new requirements of importing countries, requiring enterprises to have proactive solutions to respond.
Promoting Vietnamese pharmaceutical industry

Promoting Vietnamese pharmaceutical industry

Vietnamese pharmaceutical market grew from $2.7 billion in 2015 to $7 billion in 2022 and is forecast to reach more than $10 billion by 2026.

More News

HCM City to host iTech Expo 2024 in July

HCM City to host iTech Expo 2024 in July

The first-ever international technology exposition (iTech Expo) 2024 will take place in Ho Chi Minh from July 10-12, featuring 500 booths from leading technology countries and territories around the world, heard a press conference on May 20.
Exports to the US reaches over US$6 billion

Exports to the US reaches over US$6 billion

VCN - The US continues to be Vietnam's largest export market and achieves positive growth.
Market diversification key for enterprises to expand exports

Market diversification key for enterprises to expand exports

Vietnamese enterprises need to meet quality requirements and rules of origin, increase value-added content, and diversify markets, as production and business activities are forecast to face many challenges due to the unpredictable global economy and climate change.
Businesses advised to focus on brand protection in online export

Businesses advised to focus on brand protection in online export

As more and more Vietnamese businesses are using international e-commerce platforms such as Amazon, eBay and Alibaba to expand market, experts have advised domestic firms to pay greater attention to the protection of trademark in the cyberspace, especially during online exporting activities.
Find solutions to attract goods through the first specialized container port in Vietnam

Find solutions to attract goods through the first specialized container port in Vietnam

VCN- As the first specialized container port in Vietnam with 25 years of operation, the volume of goods passing through the international container port of Vietnam (VICT) is still very modest. Mr. Truong Nguyen Linh, Deputy General Director of VICT port, has shared solutions to attract cargo through this port.
Textiles and footwear in a greening spiral

Textiles and footwear in a greening spiral

VCN - More and more regulations on sustainable development are issued in major markets such as the US and EU, imposing pressure on Vietnamese textile and garment enterprises to be faster on the green roadmap.
Agricultural, forestry and fishery product exports continue to "scoring points"

Agricultural, forestry and fishery product exports continue to "scoring points"

VCN - In the first four months of 2024, the country's total export turnover of agricultural, forestry and fishery products is estimated to reach more than US$19 billion, an increase of 23.7 percent compared to the same period last year. Most key agricultural and forestry export products increased higher than the same period last year as well as the export value to all markets increased.
Build and protect the rice value chain against market fluctuations

Build and protect the rice value chain against market fluctuations

VCN - Due to recent risks and challenges,business performancehave been badly hurt andmany chain links have been under threats ..., the rice industry needs to enhance the role of ministries, branches, localities, and farmers and businesses in building and protecting the rice value chain against market fluctuations.
VN

VN's Steel industry ranks 12th in world crude steel production

This accomplishment not only highlights the industry’s rapid growth in production output but also signifies its increasing independence and diversification of product types.
Read More

Your care

Latest Most read
Imports and exports achieve US$239 billion by the end of April

Imports and exports achieve US$239 billion by the end of April

The import-export turnover in April witnessed a slight decrease compared to the previous month but it is still high with more than US$60 billion.
Spending more than US$31 billion for importing computers and electronic products in 4 months

Spending more than US$31 billion for importing computers and electronic products in 4 months

Computers, electronic products, and components are the group of imported commodities with the largest scale in the country.
Multi-dimensional picture of textile and garment enterprises

Multi-dimensional picture of textile and garment enterprises

VCN - The financial report of Thanh Cong Textile - Investment - Trading Joint Stock Company recorded revenue of more than VND 934 billion in the first quarter 2024, an increase of 7% compared to the same period in 2023; Net profit reached over VND 62 bill
Promoting Vietnamese pharmaceutical industry

Promoting Vietnamese pharmaceutical industry

Vietnamese pharmaceutical market grew from $2.7 billion in 2015 to $7 billion in 2022 and is forecast to reach more than $10 billion by 2026.
HCM City to host iTech Expo 2024 in July

HCM City to host iTech Expo 2024 in July

The first-ever international technology exposition (iTech Expo) 2024 will take place in Ho Chi Minh from July 10-12, featuring 500 booths from leading technology countries and territories around the world, heard a press conference on May 20.
Mobile Version