Chu Lai Airport in the central province of Quang Nam might become the second airport in Vietnam to be privately invested, after Van Don Airport in Quang Ninh.
The Civil Aviation Authority of Vietnam (CAAV) is seeking Ministry of Transport approval for Chu Lai Airport to be invested in the form of a public-private partnership (PPP).
The CAAV's proposal follows Prime Minister Pham Minh Chinh’s in-principle nod for Chu Lai Airport to be privately invested.
Chu Lai was one of the biggest military airports in Indochina during the Vietnam War. In early 2005, civil services were added to the airport after a passenger terminal and auxiliary works were completed.
The airport, now operated by Airports Corporation of Vietnam (ACV), can handle 1.2 million arrivals per year and has eight parking slots. Despite its modest capacity, it is the largest airport in Vietnam in terms of land coverage, at 2,006 hectares.
Under the prime minister decision issued in 2018 on air transport development until 2020, with a vision to 2030, Chu Lai is planned to become an international cargo transport hub.
Under a similar plan for the period 2021-2030, with a vision to 2050, pending the prime minister's okay, Chu Lai would continue to operate as an international cargo transport hub and at the same time play an important role in passenger transport in central Vietnam.
Quang Nam province also envisages Chu Lai Airport as a great catalyst to attract foreign direct investment into the province and for the development of the regional aviation industry.
The CAAV urged the Ministry of Transport (MoT) to work with the Commission for the Management of State Capital at Enterprises (CMSC) - the parent entity of ACV and ACV to determine whether they would be willing to invest in Chu Lai.
"Chu Lai will only call for private capital if the CMSC and ACV officially confirm not to invest in the airport," said Dinh Viet Thang, head of the CAAV.
Thang added that upon their decision, the MoT would report to the Prime Minister and Politburo, the Party's decision-making body, on the orientation to mobilise private capital for airport infrastructure in general and for Chu Lai Airport.
It is expected that Quang Nam People’s Committee would be in charge of the Chu Lai Airport PPP project, Thang said.
According to preliminary data, investments in Chu Lai Airport could reach VND15,968 billion ($687 million) by 2030 and VND37,950 billion ($1.63 billion) by 2050.
Vietnam’s first and only privately-invested airport so far is Van Don in the northern province of Quang Ninh. The investor is Sun Group, one of Vietnam's leading real estate and tourism companies.
The investment followed the build-operate-transfer format. The airport conducted the first domestic flight in December 2018 and first international service in May 2019.