Vietnam aviation market to fly back by end of 2023: authority

The Civil Aviation Authority of Vietnam (CAAV) has forecast that the domestic aviation market would completely recover by the end of this year with approximately 80 million passengers and 1.44 million tons of cargo, up 45.4% and 15% year-on-year, respectively.

Compared to the pre-Covid period, the market would increase by 1% in terms of passengers and 14.8% in terms of goods, according to the CAAV prediction on Wednesday.

Of this, domestic transportation would reach 45.5 million passengers, up 5% compared to last year and 22% compared to 2019; while the figures for goods are 230,000 tons, 55% and 85%, respectively.

International transportation would reach about 34 million passengers, three times higher than last year and 83% compared to 2019; and 1.23 million tons of goods, up 10% compared to 2022 and 22.4% compared to 2019.

According to the CAAV, the domestic market has basically recovered and is posting high growth compared to 2019. The international market is also gradually recovering and is forecast to reach 2019 levels by the end of 2023.

However, the aviation industry is still facing major challenges that include limitations on airport infrastructure, fluctuating fuel prices, a shortage of personnel, and the Russia-Ukraine conflict.

The recovery of other key passenger markets for Vietnam like South Korea and Japan has been slow due to internal difficulties, such as the fear of some return of diseases and living difficulties, so the main travel demand in the short term comes from business travelers, family visits and international students. For now, the Vietnam-China aviation market has yet to reach pre-pandemic levels.

According to the International Air Transport Association's (IATA) forecast for the global aviation market, international passenger traffic volume in 2023 is expected to reach 80% of that in 2019.

The Asia-Pacific region is facing a slow recovery, but passenger transport revenue is forecast to increase and the global aviation industry will become profitable again this year.