Vietnam needs $5 bln in private capital for airport infrastructure this decade
Vietnam needs to mobilize VND128,115 billion ($5.15 billion) from the private sector toward airport infrastructure in 2021-2030, the Ministry of Transport said Friday.
The total need is VND403,106 billion ($16.21 billion), of which the ministry can provide VND9,841 billion and state-run Airports Corporation of Vietnam (ACV), VND265,150 billion, the ministry stated at a Friday event on private funds for airports.
Van Don International Airport in Quang Ninh, home to Ha Long Bay, is the first and only private airport in Vietnam. Photo courtesy of Quang Ninh newspaper.
ACV said that private capital for the sector is necessary as the corporation will focus on investing in only some out of 21 airports under its management in 2021-2025, including phase 1 of Long Thanh International Airport (in the southern province of Dong Nai), expansion of Tan Son Nhat (Ho Chi Minh City), Noi Bai (Hanoi), Cat Bi (northern city of Haiphong), and others.
Investment in airport infrastructure reached VND95,020 billion ($3.82 billion) in 2011-2020, of which only 12.5% was funded by the state budget, transport ministry data shows.
"Van Don International Airport in Quang Ninh province is a good example of private investment," said Nguyen Anh Dung, vice director of the ministry's planning and investment department. Leading real estate developer Sun Group is the investor.
Pham Ngoc Sau, CEO at Van Don International Airport, said the airport, upon its operation in late 2018 after 24 months of construction, partly helped increase Van Don district’s budget collection from VND130 billion in 2015 to VND1,000 billion ($40.2 million) in 2020.
Pham Van Hao, vice head of the Civil Aviation Authority of Vietnam (CAAV), said the agency has so far received about 10 proposals for private investments in airports.
Last month, the transport ministry proposed that six airports in as many localities in the north, central, Central Highlands and southern regions be expanded via PPP projects. Five of the six airports - Na San, Vinh, Chu Lai, Tho Xuan and Lien Khuong - are located respectively in the provinces of Son La, Nghe An, Quang Nam, Thanh Hoa and Lam Dong. The sixth, Can Tho airport is located in the Mekong Delta city of the same name.
- Related News
- Read More
Vietnam market rebound in May: Leading stocks begin to rally
A new wave of stock market gains appears to be forming in Vietnam, opening up promising investment opportunities for both institutional and retail investors.
Finance - Fri, May 16, 2025 | 11:12 am GMT+7
Malaysia's TNB proposes partnership with Vietnam's EVN in connecting regional power grids
TNB, Malaysia's largest utility, has proposed Vietnam's state-owned utility EVN to cooperate in building a power transmission network connecting countries, including a line between Malaysia and Vietnam, via land and sea.
Energy - Fri, May 16, 2025 | 8:17 am GMT+7
New Vietnam-China int'l road transport route opens
Convoys carrying electronic components, fresh vegetables, and daily necessities departed simultaneously from Nanning in south China's Guangxi Zhuang Autonomous Region and Kunming in southwest China's Yunnan province on Wednesday morning, heading for Hanoi, the capital of Vietnam.
Southeast Asia - Thu, May 15, 2025 | 10:34 pm GMT+7
Indonesia’s rice reserve set to hit record 4 mln tons
Indonesia’s rice reserves are on track to surpass 4 million tons, setting an all-time high after reaching a new record of 3.7 million tons in mid-May.
Southeast Asia - Thu, May 15, 2025 | 10:24 pm GMT+7
China's giant Huadian Group eyes enlarging renewable energy portfolio in Vietnam
Huadian Group, a wholly state-owned company of China, is keen to further invest in Vietnam’s renewable energy sector.
Energy - Thu, May 15, 2025 | 9:40 pm GMT+7
Vietnam’s macroeconomic indicators 'broadly positive': Dragon Capital
Vietnam's macroeconomic indicators remained broadly positive, with both trade and FDI attraction performing well in the first four months of the year, write Dragon Capital analysts.
Economy - Thu, May 15, 2025 | 5:47 pm GMT+7
'How many new jobs created’ should be new KPI for local governments: VCCI leader
With a shift in thinking about the role of the private sector, local governments may soon prioritize creation of new jobs and businesses over traditional growth metrics, according to Dau Anh Tuan, deputy secretary-general of the Vietnam Chamber of Commerce and Industry (VCCI).
Economy - Thu, May 15, 2025 | 5:23 pm GMT+7
Herbalife’s Vietnam earnings hit $75.4 mln in Q1, exceed China tally
Herbalife, a global multi-level marketing corporation selling dietary supplements, recorded $75.4 million in net sales in Vietnam in the first quarter of 2025, according to the firm’s report.
Companies - Thu, May 15, 2025 | 5:01 pm GMT+7
Japan’s Nitto Denko to quadruple northern Vietnam plant's production capacity
Nitto Vietnam, a subsidiary of Japan’s multi-sector corporation Nitto Denko, has decided to raise the investment in its Hung Yen province-based plant by $28 million to $160 million.
Investing - Thu, May 15, 2025 | 3:58 pm GMT+7
UAE Embassy, VAFIE to jointly strengthen Vietnam-UAE business connections
The Embassy of the United Arab Emirates (UAE) in Hanoi and the Vietnam's Association of Foreign Invested Enterprises (VAFIE) on Wednesday agreed to jointly deploy specific measures to lift trade and investment ties between the two countries.
Companies - Thu, May 15, 2025 | 2:37 pm GMT+7
Turbulent times of Vietnam's food giant Kido
Profits of Kido Group, a leading food company in Vietnam, have been lower than its leaders' expectations in the past few years, with its real estate investment and divestment from Kido Foods not being smooth sailing.
Companies - Thu, May 15, 2025 | 2:27 pm GMT+7
Impact of US tariffs on Vietnam’s textile, clothing and footwear sector
The adjustments in the U.S. tariffs are poised to reshape Vietnam’s textile, clothing and footwear industry, prompting businesses to reassess their strategies and operations, write Assoc. Prof. Rajkishore Nayak and Corinna Joyce from the Fashion Enterprise program at RMIT University Vietnam.
Consulting - Thu, May 15, 2025 | 8:17 am GMT+7
Malaysia-EU FTA expected to promote ASEAN-EU ties
The EU is placing high expectations on the Free Trade Agreement (FTA) with Malaysia as a central pillar in its strategy to strengthen relations with the Association of Southeast Asian Nations (ASEAN) amid escalating global uncertainties.
Southeast Asia - Wed, May 14, 2025 | 10:17 pm GMT+7
Malaysia works hard to expand semiconductor ecosystem
Malaysia needs to broaden its manufacturing ecosystem beyond assembly lines and semiconductors to fully capitalize on foreign investments, towards becoming a more complete manufacturing hub.
Southeast Asia - Wed, May 14, 2025 | 10:14 pm GMT+7
Vietnam's Phu Quoc airport to undergo major upgrade ahead of APEC 2027
Phu Quoc International Airport in the southern province of Kien Giang will be expanded and upgraded to support local economic development, while ensuring transport infrastructure for hosting the 2027 APEC Economic Leaders' Week.
Travel - Wed, May 14, 2025 | 9:57 pm GMT+7
Banks cut staff, transaction branches amid accelerating digital transformation
A series of banks have announced plans to cut staff and transaction offices, setting off a wave of job losses in the banking industry that has been considered one of the hottest professions in recent years.
Companies - Wed, May 14, 2025 | 9:51 pm GMT+7
