Changi Airports International (CAI) of Singapore on February 26 signed a memorandum of understanding (MoU) with the Middle Airport Authority (MAA) in Hue to invest in and develop Phu Bai International Airport. The signing ceremony was attended by Singaporean President S.R Nathan. This event marked the first close cooperation by a foreign investor with Vietnam Aviation, a big opportunity for Vietnam’s aviation development after Vietnam opened its skies. On the occasion, Vietnam Business Forum talked with Chow Kok Fong, executive general director of CAI.
Why did CAI choose Phu Bai Airport to invest in?
Phu Bai International Airport is located in Hue City, an ideal gateway into Thua Thien Hue Province for businessmen and visitors to come to central region of Vietnam. It is on the East West corridor linking to Thailand, Laos and Myanmar. In 2007, Vietnam recognized Hue as a development city in culture and tourism, and held tourism festivals and cultural heritage celebrations here in August 2007. Therefore, we have big expectations for out investment here.
Specifically, what expectations does the MoU bring for the development of both sides?
In the context of integration, the world becomes smaller. Most economic activities depend on airports; therefore it is necessary to give priority to airport development. I think Phu Bai needs to be upgraded to serve the development of Vietnam aviation. In the next five years, Phu Bai will welcome a 3-fold increase of visitors. In addition, developing transport will boost economic growth, so Hue city will also develop more. We believe that if Vietnam aviation develops, it will bring advantages for the development of Singaporean tourism – this is where sides have advantages.
CAI is famous for investing in and managing airports. What technologies will CAI apply when investing in Vietnam?
We want to share with our Vietnamese partners our experiences in developing and exploiting airports, especially the process of managing airports and developing runways to increase the number of international flights. CAI has helped develop more than 40 airports around the world. The company focuses on developing infrastructure in emerging economies. In 2007, CAI contributed some 9.5 per cent to the GDP of Singapore, with profit of US$400 million. The international airports which CAI has built received the highest awards in the sector, such as “Best Airport in Middle East” and “Best Airport in Latin America”.
CAI is the first foreign investor to cooperate closely with Vietnam aviation, what do you think about the investment environment in Vietnam?
CAI has invested in many foreign countries. The most recent project focused on building Lukou international airport in China. In comparison with the investment environment in other countries, we see that the investment potential in Vietnam is very big and we haven’t hit any major difficulties. CAI is proud of being the first foreign enterprise investing in Vietnam’s aviation sector. We hope to work closely with the Middle Airport Authority to finalize detailed agreements.
Huong Ly
Vietnamese
