Vietnam moving towards a more open aviation market

Vietnam moving towards a more open aviation marketWednesday, February 13, 2008
In a move to open up Vietnam’s aviation market, the Vietnamese government has given the green light to the nation’s first private airline, VietJet, according to a report by VietNamNet Bridge.
Set to commence operations in November, VietJet will fly on popular domestic routes linking Ho Chi Minh City, Ha Noi and Da Nang as well as international air routes to Singapore and Thailand. The new airline is set to win over substantial market share from rivals, Vietnam Airlines and Pacific Airlines.
“We will establish a partnership for mutual development with the aviation community in the Vietnamese market in order to ensure customers’ highest benefit,” said Robert Hughes, Managing Director of VietJet.
According to the Minister of Transport and Communication, Ho Nghia Dung, the establishment of new aviation firms is crucial to Vietnam’s aviation market in that it will stimulate competition in the face of rising demand. In the last five years, Vietnam’s aviation sector has grown 15 percent annually. The industry’s growth rate even tipped the 20 percent mark last year. Meanwhile, Vietnam Airlines General Director Pham Ngoc Minh told VietNamNet Bridge that there was plenty of room in the market for other airlines. However, the Vietnam Aviation Department believes that realistically, the government will only provide approval to another two or three airlines in the next few years.