Vietnam’s aviation sector will find itself unable to fulfill its target of becoming the fourth biggest air market in Southeast Asia in 2015-2025 without the aid of foreign investment, said head of the Vietnam Aviation Department, Dinh Viet Thang.
Between now and 2025, the sector will need VND185 trillion ($11.7 billion) for its development strategy. Of the total, investment for infrastructure requires VND95 trillion ($6 billion). Meanwhile, capital from the State budget only meets around 20 per cent of its demand. Mr. Thang said.
Facing huge demand for capital, the country’s aviation authorities have for the first time built a new master plan for the sector to be submitted shortly to the government for approval, Mr. Thang said, adding an investment promotion board will also be set up to attract foreign investment.
Regarding the issue of seeking outbound sources for the aviation sector’s development strategy, Deputy Minister of Transport Nguyen Tien Sam confirmed that the list of long-term and five-year investment programs as well as the list of projects calling for foreign investment and ODA will be announced widely in order to mobilize capital from as many sources as possible.
Vietnam has opened up its State-controlled aviation sector to outside investors. Until now, however, there is no considerable foreign investor taking part in the field, excluding Japan’s ODA project to build the Tan Son Nhat terminal T1 and the possible Noi Bai terminal T2, Mr. Sam said.
According to Mr. Thang, an investor only gains profits when an airport handles more than six million passengers per year. In Vietnam, only the Tan Son Nhat Airport in Ho Chi Minh City reaches that level.
According to deputy general director of the Civil Aviation Authority of Vietnam (CAAV), Dinh Xuan Huong, CAAV has invested large amounts in building new facilities and upgrading existing ones to meet the rising demand for air transport. CAAV currently runs 22 airports across the country, including three international airports – Tan Son Nhat, Hanoi’s Noi Bai and Danang Airport in the central region.
The country’s aviation market is forecast to grow 12-14 per cent a year between now and 2010, 9-11 per cent in 2010-2015 and 10-12 per cent in 2015-2020.
Vnexpress
Vietnamese
