Vietnam aviation sees wave of private-sector entrants

Vietnam’s aviation market is entering a new phase of competition as a growing number of large private companies move to invest in airports and establish new airlines.

In 2025, Vietnam’s aviation sector recorded a strong rebound, carrying 83.5 million passengers, up 10.7% from a year earlier and the highest level on record. International air travel remained a bright spot, with international passenger numbers reaching about 46.6 million, an increase of 12%.

Looking ahead to 2026, the industry aims to maintain double-digit growth. Under current plans, total passenger traffic is expected to reach around 95 million, while cargo volumes are projected at more than 1.6 million tons, up about 13% and 15% year-on-year, respectively.

Analysts at MBS Securities said Vietnam’s aviation sector is likely to sustain strong momentum in 2026, driven mainly by rising international passenger traffic, supportive visa exemption policies, political stability, and relatively low living costs.

Another key driver, the analysts said, is continued investment in aviation infrastructure.

According to experts at SHS Securities, Vietnam’s airport network, which already exceeds the global average in density, will provide improved accessibility in line with the country’s approved master planning.

SHS noted that a more favorable regulatory environment has opened the door for private investors to participate in airport development.

Van Don Airport, for example, was Vietnam’s first privately-developed airport, built under a BOT model and fully invested by Sun Group rather than state-owned Airports Corporation of Vietnam (ACV).

Against this backdrop, a number of private conglomerates have stepped up investment in airport infrastructure or launched new airlines.

Masterise Group has established a wholly-owned aviation infrastructure company with charter capital of VND29.3 trillion ($1.12 billion), according to its corporate registration data. The company is headquartered in Bac Giang ward, Bac Ninh province, and is led by CEO and legal representative Vu Hoang Long, born in 1982.

The move came as the private group had been selected by the Government and the Ministry of Public Security as the investor for the Gia Binh International Airport project.

The National Assembly on December 11 approved an investment plan for the Gia Binh project, which will cost about VND196.38 trillion ($7.45 billion) to meet international standards, including 5-star service.

Meanwhile, Sun Group has established a new aviation-focused subsidiary with charter capital of VND600 billion ($22.84 million) in the central province of Lam Dong, positioning itself for the planned Phan Thiet airport project, according to corporate filings.

Sun Phan Thiet Airport LLC has three shareholders. Sun Airport JSC, a Sun Group subsidiary, holds a controlling 55% stake, while two individual shareholders, Tran Van Hai and Trinh Quang Minh, own 15% and 30%, respectively. Minh also serves as CEO and legal representative.

Sun Airport JSC was established in January 2025 with charter capital of VND1 trillion ($38.07 million). The company operates Sun Phu Quoc Airways and manages Phu Quoc International Airport, both developed within Sun Group’s aviation ecosystem.

The new company was set up shortly after Lam Dong authorities approved, in mid-December 2025, the investment policy for the civil aviation component of dual-use Phan Thiet airport. Under the approved plan, the civil aviation package will cover about 74.6 hectares and is designed to handle up to two million passengers annually by 2030.

Crystal Bay Tourism Group has also entered the aviation sector. In November 2025, it established Crystal Bay Airlines JSC, headquartered in Khanh Hoa province, with chartered capital of VND300 billion ($11.42 million). Passenger air transport is listed as its core business.

The founding shareholders include Crystal Bay Tourism Group JSC (94%), Nguyen Duc Chi (5%), and Bui Tuong Chi (1%). Currently, Bui Tuong Chi holds the position of general director and Nguyen Duc Chi is chairman of the board of directors of Crystal Bay Airlines.

Another new entrant is LOTHA Aviation Joint Stock Company, with charter capital of just VND10 billion ($380,600), significantly smaller than other aviation newcomers such as Masterise Aviation Infrastructure (VND29.3 trillion or $1.12 billion), Phu Quoc Sun Aviation (VND1 trillion) or Crystal Bay Airlines (VND300 billion).

Corporate filings show that Nguyen Ngoc Son, born in 1993, holds 96% of LOTHA Airlines’s shares and serves as its legal representative, chairman and CEO. The remaining shares are held by minority shareholders with marginal stakes.

Data compiled by The Investor indicate that Son has close personal and business ties to Nguyen Thi My, born in 1974, a businesswoman closely associated with the Hamy cashew brand. The link is most evident at Sobi Food and Beverage Co, formerly known as Hamy Japan Co.

Competition intensifies

Among the new players, Sun PhuQuoc Airways and Crystal Bay Airlines are expected to operate as new carriers, while Masterise Aviation Infrastructure and Lotha Airlines are focused mainly on providing aviation support services. The arrival of these newcomers is expected to intensify competition in Vietnam’s aviation market.

Currently, Vietnam Airlines and VietJet Air dominate the domestic market, accounting for more than 86% of market share. Smaller carriers such as Bamboo Airways, Pacific Airlines and Vietravel Airlines are seeking to expand through restructuring, revised strategies, and network development.

Sun PhuQuoc Airways has also drawn attention after expanding its fleet from zero to nine aircraft within six months, from August 2025 to February 2026.

Bamboo Airways is expected to stage a recovery following a prolonged restructuring process. After returning to the FLC Group, the airline announced plans to recruit 1,000 flight attendants from 2026 and expand its fleet by 8-10 aircraft annually through 2030.

After more than two years of restructuring, Bamboo Airways currently operates eight Airbus A320/A321 aircraft on 12 high-demand domestic routes and has suspended scheduled international services, maintaining only charter flights.

The flight network mainly focuses on routes between Hanoi, Da Nang, Ho Chi Minh City, and tourist destinations such as Quy Nhon, Nha Trang, and Da Lat.

Meanwhile, Vietravel Airlines and Sun PhuQuoc Airways are seen as beneficiaries of the broader ecosystems backing them.

Vietravel Airlines, with T&T Group as its strategic shareholder, is expected to become a key link in T&T’s infrastructure, logistics and aviation projects. The airline raised its capital to VND2.25 trillion ($85.67 million) in December 2025 and plans to increase it further to VND2.6 trillion to support fleet expansion and operational growth.

Chairman of the board of directors of Vietravel Airlines, Do Vinh Quang, stated that this plan was developed based on the participation and commitment of SHB Bank, an entity within the T&T Group ecosystem.

Regarding Sun PhuQuoc Airways, it benefits from Sun Group’s role as both investor and operator of key airports, including Van Don and the Phu Quoc airport expansion. Since November 2025, the airline has begun selling tickets under a hybrid full-service and charter model.

SHS Securities estimates Vietnam’s aircraft fleet will reach 193 planes by end-2025, rising to 228 in 2026 and 260 in 2027. With passenger growth forecast at around 10% annually, faster fleet expansion could weigh on capacity and yields from the second half of 2025.

MBS Securities, however, said competitive pressures on Vietnam Airlines and VietJet Air are likely to be limited, as both carriers are focusing more on higher-margin international routes to markets such as India and South Korea. Their business performance is expected to continue growing strongly in 2026-2027, the broker said.

Even so, MBS analysts cautioned that Vietnamese airlines face mounting competition from global carriers on international routes, as airlines such as Emirates, Singapore Airlines, Qatar Airways, Korean Air, and Turkish Airlines step up their presence in what they see as a high-potential market.

Currently, Vietnamese airlines account for about 40-45% of international passenger traffic, with VietJet Air holding 56% of that share, followed by Vietnam Airlines with 42%.

As competition intensifies both at home and abroad, airlines will need to continue restructuring, optimizing fleets, and improving service quality to defend and expand their customer base.