Vietnam’s Aviation Industry Faces to Three Huge Obstacles, Experts Say

Diep Nguyen

15:51 20/05/2019

BizLIVE -

There are three main challenges that the airline industry needs to overcome: the state bureau and policies; the airline industry infastructure and the human resource training for the airlines industry.

Vietnam’s Aviation Industry Faces to Three Huge Obstacles, Experts Say
According to the experts, there are three main challenges that the airline industry needs to overcome: the state bureau and policies; the airline industry infastructure and the human resource training for the airlines industry.
Head of Aviation Transportation Department in Vietnam’s Civil Aviation Bureau, Ho Quoc Cuong, revealed that in 2018, Vietnam’s airlines transport total almost 50 million passengers, the growth rate of more than 10 percent compared with 2017; in terms of goods, Vietnam airlines transport more than 400 thousands of goods, in increase of 27.2% year on year.
All those above greatly contributed to the general GDP growth rate of 7.08% of the whole economy in 2018. If include all the foreign airlines, the aviation transportation market of Vietnam in 2018 is estimated to transport 70 million customers in 2018, an increase of 12.6% compared to 2017.
Cuong said: “We all know that the airline industry over the past several years has witnessed strong growth rates, this shows that the demand of the airline industry is high and still has many potentials for development”.
Professor of University of Communications and Transport, Nguyen Thi Phuong, led the audience’s attention to the fact that in recent years, when Vietnamese become richer, more people have the desires to travel. Thus this has strongly supported for the development of the aviation transportation.
However, Phuong stressed that though the demand has been high but fulfilling the demand is still limited. In the coming time, Phuong worried if there is no new policy for the development, the role of the aviation industry in the economic growth process will diminish.
Chairman of Vietnam Airlines, Pham Ngoc Minh, shared that he is very impressed but not surprised with the development of the airline industry from 2014 to 2018. 
From Minh’s own data, in the second half of 2018 and first half of 2019, the domestic airline growth rates consecutively reached 9% and 7%. Minh thought that the airline industry can develop more but it has to deal with too many obstacles. Firstly, the big airports like Tan Son Nhat can not absorb more flights, the sudden surge of people switching from road means of transportation to airplanes and the overload of airline infastructure.
Minh thinks that if Vietnam does not have the truly international flights, it is very difficult for Vietnam’s airline industry to compete. Even until now there are few transatlantic airlines to Vietnam apart from Air France and several Middle East airlines. All other transatlantic airlines fly to Singapore, Hong Kong, South Korea. 10 years ago, Singaporeans called Vietnam a bus stop – the destination to gather passengers to Singapore. 

DIEP NGUYEN

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