Tourism growth boosts aviation retail potential in Vietnam: exec 

Vietnam’s aviation retail trade potential has risen alongside growth in the number of tourists visiting the country, says Johnathan Hanh Nguyen, chairman of the Inter-Pacific Group (IPPG).

He was speaking Monday at Trinity Forum 2024, a leading event on aviation retail trade, in Ho Chi Minh City. The forum was co-hosted by Vietnam Airports Corporation (ACV) and IPPG.

Nguyen said IPPG was a pioneer group in investment and development of duty-free retail and tourism in the country, contributing to making Vietnam an attractive destination in the eyes of international investors and the tourism retail industry.

The group was currently a partner of more than 138 world-famous brands, more than 1,000 retail chains, an investor, manager and developer of aviation infrastructure, and an investor in duty-free store chains at airports, he said.

According to a 2023 report by the Airports Council International (ACI World), non-aviation revenue will grow and account for 30-40% of total revenue at global airports.

This was a positive sign that the travel retail and duty-free industries are on the path to recovery after the pandemic, Nguyen noted.

"With its strategic location in Asia, tourism growth, the rise of the middle class, and the Government's efforts to improve airport infrastructure, Vietnam is creating strong momentum for economic development, making it a potential destination for the aviation industry. IPPG strives to turn the airport and duty-free shop system into a destination for passengers," Nguyen added.

According to the General Statistics Office, in the first 10 months of 2024 alone, Vietnam welcomed more than 14.1 million international visitors, up 41.3% year-on-year. A majority of international visitors arrive by air.

Nguyen Duc Hung, deputy general director of ACV, said at the forum that in 2023-2024, with strong recovery after Covid-19, ACV's airport system would serve more than 113 million passengers per year, with international passengers accounting for 30% of the total.

Revenue from ACV's non-aviation services in 2023 is estimated at VND3,686 billion ($145.2 million), about 18.83% of total revenue.

It is expected that in the 2021-2030 decade, ACV would invest nearly $16 billion in important projects like the Long Thanh International Airport (phase 1), Tan Son Nhat Terminal T3, and expansion of Terminal T2 at the Noi Bai International Airport.

"Focusing more on investing and developing non-aviation business services to meet the needs of passengers will contribute significantly to having them reach the target of 30-40% of ACV's total revenue," Hung said.