VietNamNet Bridge – It’s still very difficult to develop the infrastructure
system for the aviation industry, because Vietnam still cannot attract non-state
investment sources.
Making classification would help attract investments
The capacity of the domestic airports has increased from 6 million passengers in
2000 to 52 million in 2012. In 2009, the Prime Minister approved the airport
development program which foresaw the increasingly high demand for traveling.
According to the Civil Aviation Authorities of Vietnam (CAAV), the development
program has been going on the right track with the targets in the air route
network, fleet, airport network and flight activities having been following the
programmed schedules.
Besides the state owned Vietnam Airlines, which now holds 40 percent of the
passenger and 20.2 percent of the cargo market share, Vietnam also has private
airlines, namely Vietjet Air, Air Mekong and foreign invested airline – Jetstar
Pacific.
The Vietnamese fleet with high convenience and safety now comprises of 98
aircraft which are 6.9 years old on average. Of these, 46 aircrafts belong to
Vietnam Airlines.
In terms of the infrastructure conditions, the development of 25 airports has
been approved; of which 25 percent would be capable to receive big size
airplanes like Boeing 777, 747, while 45 percent of airports can receive
A320/321 aircrafts.
According to the Ministry of Transport, it has been very difficult to attract
investments in the aviation sector, because the business field always requires
huge investment capital, long time to take back the investment capital and high
techniques. Especially, this is the sector that relates to the national defense
which needs strict protection measures and require complicated procedures.
Therefore, the ministry believes that it’d better to classify the airports to
make it easier to call for investment.
The first-class airports would comprise of the big airports which play an
important role in the economic, political and national defense development.
These include the Noi Bai in Hanoi, Tan Son Nhat and Long Thanh in HCM City and
Cam Ranh in Khanh Hoa province in the central region.
The second-class would comprise the remaining airports.
The airports with high business potentials, according to CAAV, would be assigned
to investors to develop.
As such, the airport classification would point out which airports Vietnam
should call for foreign or private investments, and which airports need the
state’s investment and development.
In the latest news, the Ministry of Transport is considering delaying the
investment projects in some small airports such as Lai Chau, Lao Cai, Quang Ninh
until after 2020.
Diversifying investment sources would help ease burden on the state
Calling for different investment sources for the aviation infrastructure,
according to CAAV, is the optimal solution.
A report showed that the capital allocated by the State budget to the aviation
infrastructure just accounts for 1.8 percent of the total capital allocated to
the transport development every year. The annual budget just can meet 60 percent
of the real demand.
Once non-state investors join the program to develop the airport network, they
would help ease the burden on the state budget, while ensuring the scheduled
airport development program.
Experts also believe that the socialization should be pushed up not only in the
aviation infrastructure sector, but also in other sectors which can be the
subjects to the equitization.
Vietnam has geared up with its plan to upgrade and expand a series of airports,
including Noi Bai, Tan Son Nhat and Phu Bai, in an effort to obtain the annual
20 percent growth rate in many consecutive years.
NLD