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Vietnam’s Aviation Industry Continues its Growth Momentum

Vietnam’s Aviation Industry Continues its Growth Momentum

Vietnam is one of the fastest growing aviation markets in the world, growing by 17.4 percent in the last decade, which was driven by a rise in domestic and foreign travelers as well as the emergence of low-cost carriers. However, this rapid growth has started to put a strain on the airport infrastructure. The government has started to invest in infrastructure but more needs to be done in terms of capital and investment regulations to achieve a sustainable growth.

Vietnam’s aviation sector ranks the fifth amongst ASEAN countries. The sector served more than 94 million passengers including 13 million foreign passengers, an increase of 16 percent compared to 2016, more than double that of Asia. However, domestic passenger growth slowed down to 13 percent in 2017 from 25 percent in 2016.

2018 and onwards

Between now and 2020, passenger transportation is expected to rise by 16 percent, and from 2020 to 2030, by 8 percent. Goods transportation will increase by around 18 percent until 2020, and 12 percent between 2020 and 2030.

Vietnam, currently one of the world’s fastest-growing aviation market will be the fifth fastest-growing market by 2035, according to the International Air Transport Association.