Aviation industry: Integration and sustainable development

16:30 | 04/05/2015 Industry

(VEN) - With Vietnam as a potential market, the Vietnamese aviation sector has made great efforts towards international integration and sustainable development.

Aviation industry: Integration and  sustainable development

High growth

Thanks to favorable geographical location in the Asia-Pacific region, Vietnam has great potential in terms of air traffic.

The Vietnamese aviation sector currently uses 21 airports throughout the country serving flight operations. The airport system has been developed based on three major international airports in Hanoi, Da Nang and Ho Chi Minh City, including Noi Bai International Airport, Da Nang International Airport and Tan Son Nhat International Airport. Together with three major international airports, local airports have played an important role in connecting flight routes.

The aviation market has recorded high growth in recent years with an average growth of about 16 percent and 10 percent in terms of passengers and cargo during the 2003-2014 period. Despite difficulties due to the global economic recession, Vietnamese airports received more than 50.5 million passengers and 905,000 tonnes of cargo last year, a year-on-year increase of 14.7 percent and 18 percent, respectively.

In addition to high growth, revenues have also increased steadily. Total revenues of Vietnamese airlines are expected to stand at more than US$8 billion by 2020, reaching an average increase of 23 percent per year.

In early 2015, Noi Bai International Airport completed the construction of, and put Terminal 2 into operation with a design capacity of 10 million passengers per year. According to the plan, the new terminal will reach a capacity of 15 million passengers per year by 2020. After 2020, the government will further consider investment in Terminals 3 and 4 in order to increase the capacity at Noi Bai International Airport to 50 million passengers per year.

Towards integration

Vietnam has implemented many policies to reduce the regulation of air transport through bilateral and multilateral agreements, developed the air transport market based on open mechanisms, and encouraged foreign airlines to promote operations in Vietnam, thus contributing to improving competitiveness. A series of measures were put in place to simplify procedures to create favorable conditions and encourage foreign airlines working in Vietnam. Vietnam has also encouraged all forms of joint venture and issued suitable price policies for foreign airlines working at Phu Bai, Cam Ranh, Lien Khuong, Can Tho and Phu Quoc international airports.

Vietnam has signed 61 bilateral aviation agreements with 61 countries and territories in most major regions of the world such as Southeast Asia, Northeast Asia, South Asia, Eastern Europe, Western Europe, North America, North Africa and the Middle East, plus six multilateral aviation agreements.

Vietnamese airports are expected to receive 65 million passengers by 2015, more than 100 million by 2020 and 200 million by 2030. And Vietnamese airlines will carry nearly 30 million passengers by 2015, around 60 million by 2020 and 120 million by 2030.

Vietnam has basically adopted open access to the air transport market, liberalized and committed to open the market for traffic rights 3 and 4 and a part of freedom traffic right 5 in the bilateral and multilateral system except some European and Australian countries. Bilateral and multilateral agreements between Vietnam and other countries allow Vietnamese and international airlines to operate following the market demand. In the coming time, Vietnam will also maintain consistent policies on air transport based on open-market mechanisms.

The Vietnamese aviation sector has implemented specific measures and policies to develop transport force in general and private airlines in particular. These measures and policies have created favorable conditions to promote operations of several airlines. In terms of license to new airlines, the aviation sector has adopted specific plans and roadmaps to meet the increasing demand for air transport and contribute to ensuring sector sustainable development.

By Duong Nga

Theo ven.vn