Aviation Sector Opens the Door to Foreign Investors

Vietnam’s aviation industry is in need of foreign direct investment and official development assistance (ODA), especially for its infrastructure, from now to 2025, to meet its goal of standing at the fourth position in the Southeast Asia in the 2015-2025 period, said Head of the Planning and Investment Board of the Vietnam Civil Aviation Administration Dinh Viet Thang.

 

The sector will need VND185 trillion (US$11.7 billion) for development by 2025, including VND95 trillion (US$6 billion) for investment into infrastructure. However, the State budget can only meet 20 per cent of the total capital requirement for the sector, according to Thang.

 

The industry is preparing a new overall development plan to be submitted shortly to the government for consideration, Thang said, adding that it will also call on the government for a specific and consistent policy to attract foreign investment to the sector.

 

At present, the amended Aviation Law is under construction and Vietnam’s policy to define the scope of activities for foreign investors in the field remains unclear.

 

To date only Japanese ODA has been poured into projects of building a new terminal at Tan Son Nhat International Airport in Ho Chi Minh City and another terminal T1 at Hanoi’s Noi Bai Airport. The Japanese ODA is likely to also fund an additional terminal T2 at Noi Bai Airport in the coming time.

 

Some Hong Kong, US and Danish investors have shown interest in investing in Vietnam’s aviation sector, but none of the projects have been deemed feasible.
P.V