Vietnam okays property developer Sun Group’s airline project

Prime Minister Pham Minh Chinh on Tuesday gave in-principle approval to the establishment of Sun PhuQuoc Airways (SPA) by Sun Group, one of Vietnam’s top real estate developers.

Under the decision, the project will be carried out by Sun Phu Quoc Aviation Limited Liability Company, a subsidiary of Sun Group, with a total investment of VND2.5 trillion ($98.8 million). SPA is expected to operate 31 aircraft by 2030.

The project aims to establish a new airline primarily focused on commercial passenger transportation. It will also operate charter flights catering to tourists traveling to key tourism and business destinations in Vietnam and around the world, particularly well-known islands and bustling financial-commercial hubs.

Notably, SPA is envisioned to bring international tourists to Phu Quoc Island in the southern province of Kien Giang. The presence of another airline flying to the island will also make it more accessible and convenient for Vietnamese travelers.

The Prime Minister’s in-principle approval marks a significant milestone for Vietnam’s aviation sector and the development of Phu Quoc’s tourism industry.

Alongside existing carriers, SPA is expected to become a new bridge connecting Phu Quoc - ranked as the second most beautiful island in the world after the Maldives - with both domestic and international tourists.

SPA’s first flights are expected to launch in Q4/2025, connecting Phu Quoc with key economic and tourist hubs both domestically and internationally.

In addition to SPA, Sun Group also operates Sun Air, a premium airline offering luxury, personalized private jet services for high-end customers.

In March, Sun Group proposed the Ministry of Transport (now the Ministry of Construction) invest in the second phase of Phu Quoc International Airport under a public-private partnership (PPP) model, via a build-operate-transfer (BOT) contract.

If selected as the investor, the group said it is committed to developing Phu Quoc airport with the most advanced technologies in the world and finishing the project within 16-18 months from land clearance completion.

The Phu Quoc airport expansion project is one of the projects set to serve the APEC Economic Leaders’ Meeting in 2027 in the province. It has an estimated total investment of VND22 trillion ($847.13 million).

The expanded airport, spanning 1,050 hectares, will achieve ICAO 4E classification, with an annual capacity of 18 million passengers. Major components of the expansion include extending the existing runway to 3,500 meters, constructing a new second runway 3,300 meters in length, building Terminal T2 and a VIP terminal, and developing aircraft aprons with 70-80 parking stands.

In the master plan for Phu Quoc International Airport for the 2021-2030 period, with a vision to 2050, the airport will be capable of accommodating large aircraft such as Boeing B747, B787, Airbus A350, and equivalents.

Currently, in addition to Sun Group, Imex Pan Pacific Group (IPPG) of billionaire Johnathan Hanh Nguyen has proposed to engage in the expansion and upgrade of Phu Quoc airport.

Sun Group is also the investor behind Van Don International Airport in the northern province of Quang Ninh, currently the only privately-owned airport in Vietnam.