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Monday, June 17, 2024

Vietnam to spend US$15.7 billion on expanding airports by 2030

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HCMC – Vietnam will spend VND365.1 trillion (US$15.7 billion) between now and 2030 to expand existing airports or build new airports, according to the Civil Aviation Authority of Vietnam (CAAV), which has laid out a draft plan on aviation development until 2030, with a vision towards 2050.

In the next 10 years, the country will build a number of new airports such as Long Thanh, Quang Tri, Phan Thiet and Sapa, while the Tan Son Nhat, Noi Bai, Danang and Cam Ranh international airports will be expanded.

The country will spend another VND866.36 trillion (US$37.3 billion) to build Lai Chau, Na San and Cao Bang airports and the second airport in Hanoi. The capacity of many local airports will be doubled or even tripled.

CAAV said in the 2020-2030 period, priority will be given to the first phase of the Long Thanh International Airport in Dong Nai Province, which will cost US$5 billion, as well as the T3 terminal and third runway at the Noi Bai International Airport in order to raise the airport’s capacity to handle 60 million passengers.

The country will also prioritize the construction of T3 terminal at the Tan Son Nhat International Airport to raise the airport’s capacity to handle 50 million passengers and the expansion of the Danang and Cam Ranh international airports.

Investment for the projects will be sourced from the State’s budget, official development assistance or the private sector.

To mobilize capital for these projects, CAAV suggested that the Government offer more incentives to investors, enable enterprises to access preferential loans, and support them in raising chartered capital and collaborating with other sectors.

Tran Quang Chau, vice president of the Vietnam Association of Aviation Science and Technology, said the State’s budget is not capable of funding all airport construction or expansion projects. Therefore, the Government has to call for stronger engagement of the private sector.

“To attract private investors, the projects must prove to be feasible and profitable. Some private companies have invested in the construction of the Van Don and Cam Ranh airports. The expansion of the Tan Son Nhat, Noi Bai, Cam Ranh and Danang airports will also be attractive to private investors if investors are offered favorable policies,” he said.

Meanwhile, the Quang Tri Airport is only 60-80 kilometers from the Dong Hoi Airport in Quang Binh Province and the Phu Bai Airport in Thua Thien Hue Province. Therefore, this project must be carefully assessed.

Hoang Van Cuong, member of the Finance-Budget Committee of the National Assembly, said that major airports such as Tan Son Nhat, Noi Bai and Danang are overloaded. The projects to expand or upgrade these airports must be prioritized. Meanwhile, local airports in provinces where the air travel demand remains low should only be developed after 2030.

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