Business

Vietnam, India agree to expand air services

The new agreement between Vietnamese and Indian airlines, which takes immediate effect, doubles the weekly passenger capacity limit to 16,800 seats from the current 8,000. The expansion comes as airlines from both countries have used or are nearing full use of their existing traffic rights amid growing travel demand.

The agreement, which takes immediate effect, doubles the weekly passenger capacity limit to 16,800 seats from the current 8,000. (Illustrative photo: VNA)
The agreement, which takes immediate effect, doubles the weekly passenger capacity limit to 16,800 seats from the current 8,000. (Illustrative photo: VNA)

New Delhi (VNA) – Vietnamese and Indian airlines will be able to add flights between the two countries and double their passenger capacity under a new agreement, offering more travel options for Indian visitors to Vietnam during this year’s festival season.

The agreement, which takes immediate effect, doubles the weekly passenger capacity limit to 16,800 seats from the current 8,000. The expansion comes as airlines from both countries have used or are nearing full use of their existing traffic rights amid growing travel demand.

Vietnamese Ambassador to India Trinh Minh Manh said that the increased capacity will create more room to attract visitors in both directions. With additional destinations being opened, the expanded air connectivity could help double the number of Indian visitors to Vietnam within the next one to two years, from the current 750,000 annually to 1.5 million, if the full capacity is utilised.

Stronger air connectivity will also generate spillover effects in investment and trade, as investors from both countries can travel more easily to major cities to explore business opportunities and partnerships.

This will contribute to the goal of raising bilateral trade turnover to 25 billion USD by 2030, as agreed by the leaders of the two countries during the state visit to India by General Secretary of the Communist Party of Vietnam Central Committee and President To Lam in May, said Manh.

Vietnam has become an increasingly popular destination for Indian tourists in recent years. According to data analytics firm Cirium, Indian carriers IndiGo and Air India currently operate 30 flights to Vietnam each week, while Vietnamese airlines operate 48.

The increased capacity will enable Vietnam Airlines and Vietjet to add flights to major Indian cities, including Delhi, Mumbai, Hyderabad and Kolkata, with Chennai also planned at a later stage. Sun PhuQuoc Airways is also planning flights to Mumbai.

Sharad HG of IndiGo said that the doubling of air capacity will create significant potential for tourism cooperation and broader bilateral ties.

This is the second time since 2024 that Vietnam and India have increased their bilateral seat quota, highlighting the rapid development of air connectivity amid growing demand from Indian travellers for Southeast Asian destinations, including Vietnam./.

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