Vietnam Airlines to develop 3 air logistics projects at Long Thanh airport

National flag carrier Vietnam Airlines has been selected as the investor of three air logistics projects at Long Thanh International Airport in Dong Nai province, with a total estimated investment of VND5,602 billion ($221.54 million).

Per the Ministry of Construction’s decisions issued in late September, the largest of the three is Cargo Terminal No. 2, with preliminary investment capital of VND4,384 billion ($133.38 million).

It is set to cover 14.6 hectares in Zone C-01, Long Thanh airport. The project will build a cargo terminal, equipment systems, auxiliary items, and technical infrastructure to support business operations, with a design capacity of 550,000 tons of cargo per year.

The second is Cargo Warehouses No. 5, 6, 7, and 8, with a preliminary investment of VND1,015 billion ($38.52 million).

Spanning 15.3 hectares in Zone C-04, the project will construct four cargo handling warehouses and supporting infrastructure, with a designed capacity of 650,000 tons of cargo per year.

The third is Express Cargo Terminal, with an estimated investment of VND203 billion ($7.7 million).

Located in Zone C-02, the 5.02-hectare project will build a terminal for express cargo, with supporting systems and infrastructure. It has a design capacity of 100,000 tons of cargo per year

All the three projects are scheduled for construction from 2025 to 2026, with the operational period lasting until December 31, 2050.

In terms of financial returns to the state budget, Vietnam Airlines proposed that for the first five years from the commencement of operations, the state budget contribution will be 0% of revenue (excluding VAT).

From the sixth year onward, the minimum contribution will be 3% of revenue, with no annual increment rate applied to this minimum contribution.

The under-construction Long Thanh International Airport, about 40 kilometers east of Ho Chi Minh City, is a VND336.63 trillion ($14.12 billion) project to be built in three phases.

The first phase, scheduled for completion by the end of 2006, features the construction of two runways in the northern area and one passenger terminal, along with supporting infrastructure, to accommodate 25 million passengers per year and handle 1.2 million tons of cargo annually, according to a parliament resolution.

The 5,000-hectare airport is set to welcome the first plane to make landing or take off in July 2025. Once fully completed, it will be the nation’s biggest, helping reduce the overload at HCMC-based Tan Son Nhat International Airport.