Vietnam's air freight industry accelerates despite COVID-19: Nikkei Daily

Tokyo (VNA) - Japan’s Nikkei Daily has run an article highlighting the strong post-COVID-19 recovery of Vietnam’s air cargo industry.

According to the article, the industry is pushing through the pandemic and other headwinds in the global economy, with the number of flights surging and a new homegrown freight carrier set to take to the skies.

It quoted local media as saying that the nation's air cargo traffic in 2022 is expected to grow 17 percent from last year to more than 1.52 million tonnes, accelerating beyond average annual expansion of 15 percent over the last 30 years.

That comes amid surging demand for domestic and overseas freight as Vietnam cements its position in global supply chains for everything from electronics to clothing, with its overall exports jumping nearly 20 percent to about 336 billion USD in 2021. Major cargo operators such as Germany's DHL Express and Japan's ANA Holdings have increasingly been targeting the country.

Nikkei also cited a senior executive at a major foreign logistics company with a facility in Hanoi as saying March was a record in terms of volume handled.

Growing appetite has pushed up the cost of exporting by plane, however, with several industry insiders saying such air freight rates are still two to four times higher than pre-COVID levels, Nikkei wrote in its article

Therefore, one of Vietnam's biggest conglomerates, IMEX Pan Pacific Group, is looking to land some fresh business through its IPP Air Cargo subsidiary, which it expects to begin operating by year-end as Vietnam's first company specialised in air freight.

It plans to launch with a fleet of five aircraft, before doubling that over the next five years. It will initially establish routes between local airports and the country's two largest international airports, one near Hanoi and the other close to Ho Chi Minh City in the south.

The group also says foreign carriers are currently responsible for just under 90 percent of Vietnam's air cargo and that it will consider partnerships with overseas airlines to tap export demand, the article added./.