On December 11, 2004 United Airlines was the first United States Airline to initiate service in over 30 years between Vietnam and the United States. United's Boeing 747 lifted off from Tan Son Nhat airport that day beginning a new era in aviation between the two countries.
United was awarded the route to Vietnam after the signing of the Air Treaty Agreement between Vietnam and the United States was concluded in 2003. This treaty took several years to complete but due to the diligence of the Civil Aviation Authority of Vietnam and the US Department of Transportation the treaty was agreed marking another step in the improving relationship of the two countries.
Now, one year later, United can look back and see the initiation of service to Vietnam continues to meet the initial expectations originally planned. United began service in 1926 and is now the second largest airline in the world. It operates more than 3,400 flights a day to more than 200 US domestic and international destinations from it's hubs in Los Angeles, San Francisco, Denver, Chicago, and Washington, D.C.
United flies everyday from HCMC to San Francisco via Hong Kong in Boeing 747 equipment. Not only are the passengers the beneficiaries of this service but freight forwarders too are enjoying another avenue for shipping commodities. In general the beginning aspects of United's operations have been very good. The HCMC Department of Tourism has said that since the beginning of this year there's been a 27 per cent increase in tourists over the same period last year and the USA tops the number of travelers. United's addition of service has clearly been an integral part in this continuing growth of tourists coming from the United States.
To build the Vietnam market United set a course over this last year to build brand awareness, align itself with key constituencies and demonstrate that it is a willing participant in a number of activities as a socially responsible corporate citizen.
Probably individuals related to the aviation industry knew of United before it started flying to Vietnam, but it was important that the United brand be more recognized for the general traveler in HCMC. To do that United regularly meets along with its local partner, Transviet, and the travel agent/tour operator community to discuss product and price. In addition throughout the year an advertising campaign integrated United messages about product including price, destinations, and its frequent flyer called Mileage Plus.
Memberships in the American Chamber of Commerce and the Hong Kong Business Association also familiarized these organizations' members with the fact that United is now operating between Vietnam and the United States. All of these activities help to grow the business between both countries.
And finally in terms of social responsibility, United has engaged in a variety of activities that demonstrates its corporate philosophy of giving back to the communities in which it serves. Events in which United participated included the Cyclo Challenge in conjunction with the Saigon Children's Charity, the HCMC Fun Run sponsored by the British Business Council. And most importantly, United along with the East Meets West organization donated a water system to the community of Ba Ren in central Vietnam bringing fresh water to a the families of that commune.
Starting a new business in Vietnam for a foreign company is challenging in the first place due to the policies that govern these types of ventures. Initiating an airline adds a degree of difficulty as the competition is significant, and the local traveler faces some hurdles in obtaining a visa for most destinations. United is in constant contact with the US State Department to foster a better understanding of the process.
The Civil Aviation Authority of Vietnam (CAAV) has done much to expand the air system of the country both domestically and internationally. There continues to be plethora of new airport development throughout the country. One prime example is the work underway at Tan Son Nhat with a new terminal expected to be completed in 2006. This type of development under visionary leadership will only enhance the expected growth of the nation's business and tourism traveler.
As far as the future is concerned United believes it presence in Vietnam came at the right time. The International Air Transport Association (IATA) statistics indicate travel from Vietnam will grow 10 per cent each year for the next 5 years. This growth is stimulated by the burgeoning economy of Vietnam that continues to witness significant growth in FDI. As an example, the FDI from the USA since the signing of the Bilateral Trade Agreement in 2001 has seen a 400 per cent increase. United is instrumental in this growth as it provides the bridge for travelers between Vietnam and the United States.
Phan Dong
Vietnamese
