Aviation sector eyes recovery in 2023-24

Vietnam's aviation market is hoped to recover in 2023-24, according to a Vietnam Airlines' representative.
Aviation sector eyes recovery in 2023-24 ảnh 1Tho Xuan Airport in Thanh Hoa province. Vietnam Airlines and Vietjet Air have deployed the IATA Travel Pass, an electronic health passport application. (Photo: VNA)

Hanoi (VNS/VNA) - Vietnam's aviation market is hoped to recover in2023-24, according to a Vietnam Airlines' representative.

The international tourist market may need 2-3 years to recover to 2019 levels,while the domestic market can recover strongly as soon as the epidemic is undercontrol, according to experts from aviation organisations and Vietnam Airlines.

“Vietnam's aviation market is forecast to resume to the same performance of2019 by 2023 in an optimistic scenario and by 2024 in a more cautiousscenario,” said Dang Ngoc Hoa, chairman of Vietnam Airlines' Board ofDirectors.

To achieve this, Vietnam Airlines hopes that the Government, ministries andsectors would continue helping the domestic aviation industry to overcomedifficulties this year and create favourable conditions for future recovery, Hoasaid.

Dinh Viet Thang, director of the Civil Aviation Authority of Vietnam, said thedomestic aviation market was expected to improve in the second half of 2021when the COVID-19 vaccine rollout is accelerated in Vietnam and abroad.

Many key markets for Vietnam's aviation industry such as Northeast Asia andEurope could be able to create herd immunity as a basis for gradually reopeninginternational aviation transport operations at the end of the third quarter orthe beginning of the fourth quarter 2021.

The Vietnamese aviation market is expected to recover from the middle of thethird quarter of 2021 with a target of serving 70 million passengers at Vietnam'sairports in 2021, Thang said.

In addition, Vietnam Airlines and Vietjet Air have both joined theInternational Air Traffic Association (IATA)'s Travel Pass, an electronichealth passport application. The IATA Travel Pass helps passengers andgovernments manage travel and medical information.

Specifically, Vietnam Airlines will officially implement a trial of the IATA TravelPass on two flights numbered VN301 from Narita Airport (Tokyo, Japan) to DaNang on July 15 and July 23.

Thang said that the biggest difficulty for airlines is financial. To revive theairlines at this period, the Government's support is very important to createconditions for the airlines to have the capital to restore services.

"The Government’s financial support is only to encourage the airlines tomaintain operations, the most important thing is still the efforts of theairlines themselves," Thang told the Vietnam News Agency.

The Ministry of Planning and Investment has proposed the Government issue asupportive mechanism with interest rates of about 4 percent for banking loansin 2021-2023 for the airlines. The loans would help the airlines to maintainoperation now and then recover business in the future.

The pandemic situation in the world is still complicated with new outbreaks andnew variants of the SARS-CoV-2 virus, while the deployment of vaccinationprogrammes globally has been slower than initially expected.

Due to the impact of the pandemic, the global economy has shown signs ofrecession and people's incomes are affected, reducing travel demand in the longterm, especially by air.

Arrivals to Vietnam by air are now almost exclusively foreign officials,experts and repatriates, with foreign tourism wiped out.

Therefore, cargo transport still plays an important role in the domesticaviation market.

According to the Civil Aviation Authority of Vietnam (CAAV), in the first sixmonths of 2021, Vietnam's airports received 26.8 million passengers, down 19.4percent year on year, including 145,000 international passengers (down by 97.9percent) and 26.7 million domestic passengers (up by 1.4 percent).

Those airports also received 668,000 tonnes of cargo, an increase of 12.7 percentover the same period in 2020, 490,000 tonnes of international cargo (up by 18.1percent) and 179,000 tonnes of domestic goods (up by 0.3 percent).

The CAAV also said Vietnamese airlines companies had used most of their fleetsfor domestic routes, with the frequency and number of routes skyrocketing.

The number of domestic routes operated by Vietnamese airlines has even hit 62, ten more than in 2019./.
VNA

See more

Workers process tra (pangasius) for export (Photo: VNA)

Vietnam–Singapore trade continues to thrive

For the year as a whole, Vietnam retained its position as Singapore’s 10th largest trading partner. Bilateral trade reached a record high of nearly 40 billion SGD, up 26.2% from the previous peak of 31.67 billion SGD recorded in 2024.

Eric Van Vaerenbergh, an energy expert and lecturer at the Brussels Engineering School (ECAM) (Photo: VNA)

Belgian expert optimistic about Vietnam’s economic outlook

Vietnam should move from a growth model based mainly on expanding capital and labour to one driven by productivity improvements. He said that this requires enhancing the quality of the workforce, particularly engineers, technicians, and managers in industrial sectors.

Workers at the VSIP Hai Phong industrial and urban complex, which specialises in producing electronic components for office equipment. (Photo: VNA)

Roadmap aims to improve business climate and boost competitiveness

By the end of 2026, Vietnam aims to rank among the world’s top 50 performers in the United Nations Sustainable Development Goals, advance at least three places in the International Property Rights Index, and climb at least one position in the Global Innovation Index.

Vietnam is strengthening its position in the technology value chain, becoming a major manufacturing hub for complete consumer electronics products. (Photo: VNA)

ESG standards offer opportunities to reposition Vietnam’s electronics firms

The 2025-2027 period will be a critical turning point, as exporters to the European market will be required to strictly comply with ESG standards, including net-zero emissions roadmaps, labour standards, corporate governance and transparency requirements. As a key export sector, the electronics industry is being directly and strongly affected by this shift.

A production line for camera modules and electronic components at the factory of MCNEX VINA Co. Ltd, a Republic of Korean-invested company in Phuc Son Industrial Park, Ninh Binh province. (Photo: VNA)

Science, technology, innovation as engines of economic growth

To ensure that science and technology truly act as a powerful growth engine, experts emphasised the need for the Government to put in place supportive mechanisms and policies that encourage enterprises to invest in research and development, while strengthening cooperation among the State, research institutions and the business sector.

The headquarters of the Ministry of Industry and Trade in Hanoi (Photo: VNA)

PM updates lead roles to drive UKVFTA forward

The Ministry of Industry and Trade (MoIT) is named the lead agency, with overall responsibility for the agreement’s general goals and definitions, trade remedies, non-tariff barriers to trade and investment in renewable energy, competition policies, State-owned enterprises, enterprises with special or exclusive rights and those with designated monopolies, as well as institutional, general and final terms.

Vietravel Airlines is taking measures to enhance service quality and optimise operations amid high travel demand during Tet. (Photo: VNA)

Vietravel Airlines to add new route serving Lunar New Year travel peak

During the peak period of the Lunar New Year (Tet) festival in 2026, Vietravel Airlines plans to operate six – eight flights daily on the Ho Chi Minh City – Hanoi route, three flights daily on the Ho Chi Minh City – Da Nang and Ho Chi Minh City – Vinh routes; and two flights daily on the Ho Chi Minh City – Quy Nhon route.

The completion of Can Tho - Ca Mau expressway has helped shorten travel time from Can Tho to Ca Mau to just one hour and a half (Photo: VNA)

Can Tho–Ca Mau expressway fully opens from January 19

The new section, together with the Can Tho–Hau Giang segment that has been operating smoothly since late December last year, has completed the entire 110.85-km route. With total investment exceeding 27.52 trillion VND (1.04 billion USD), the four-lane expressway is built to modern standards and serves as a key transport artery linking major economic and political centres, industrial zones and seaports in the southwestern region.