Clarification needed in Long Thanh Airport project

Questions were raised surrounding the Long Thanh Airport project at the ‘Open, Scientific and Responsible’ conference held in Hanoi on June 1.
Questions were raised surrounding the Long Thanh Airport project at the ‘Open, Scientific and Responsible’ conference held in Hanoi on June 1.

Almost participants, including managers, scientists, voiced their support to construction of Long Thanh Airport, but question on the airport’s location, planning, construction effectiveness as well as the upgrades of Tan Son Nhat Airport.

According to Nguyen Xuan Thanh, Director of the Fulbright Economics Teaching Program, the Long Thanh Airport project is economically and socially feasible but presents major financial concerns.

Thanh said the predicted profit rate of 4 percent over the life of the airport is unrealistic and asked the investment report to clarify how the project is financially feasible including addressing the ability to pay off debts from loans to implement project.

Luong Hoai Nam, General Director of the Hai Au Air Joint Stock Company, supported the construction of Long Thanh airport, saying it is urgently needed while also emphasising the selection of an effective investment model is crucial.

Concerning investment capital, Vo Dai Luoc from the Vietnam Economics Association said the Government should only contribute 20 percent of total capital and the remaining should be sourced from local and international investors.

The multi-billion-dollar Long Thanh Airport project, the biggest-ever in Vietnam, is expected to serve the Southern Key Economic Zone including HCM City, Ba Ria-Vung Tau, Dong Nai, Binh Duong, Long An, Tay Ninh and Binh Phuoc provinces.

Tan Son Nhat is the only international airport in the region and is becoming increasingly crowded; expansions to that airport have been deemed vastly expensive.-VNA

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