Updated  
May, 15 2013 09:03:12

Foreigners could help run airports

A VietJet Air flight lands at Da Lat's Lien Khuong Airport. The Civil Aviation Administration of Viet Nam (CAAV) has called on the Transport Ministry to allow foreign investors to participate in managing and operating the terminals. — VNA/VNS Photo

HA NOI (VNS)— The Civil Aviation Administration of Viet Nam (CAAV) has called on the Ministry of Transport to allow foreign investors to participate in managing and operating terminals.

The proposal, if approved, will create a stimulus for the local aviation market as it will pave the way for highly capable international investors to enter Viet Nam, CAAV head Lai Xuan Thanh told Tuoi Tre (Youth) newspaper.

Under the approved master plan on aviation development between 2012 and 2020, Viet Nam will need VND221 trillion (US$10.57 billion) to repair and upgrade 26 terminals nationwide.

However, it will be a burden if it only relies on State capital for infrastructure rebuilding, Thanh said.

"It's necessary for assistance from international investors with modern technology, experienced administrative management, and strong financial resources," he added.

One of the most particular features of the airports in Viet Nam is that they are mutually used for both military and civil purposes.

Moreover, it is currently stipulated that the terminals must be operated by the State, which has hindered the mobilisation of international investment to establish and operate the terminals, Thanh said.

Therefore, he suggested categorising the airports into two classes.

The first class would include terminals that are significant for both international traffic and national security. such as Noi Bai, Da Nang, Tan Son Nhat, Long Thanh, Cam Ranh, and Na San. The remainder would form a second class.

Thanh said the Government would maintain its key role in terms of capital and management at first-class terminals, but still leave space for international investors to join.

These terminals had high potential for commercial development, thus were attractive to investors, Thanh said.

"As for those in the second class, we suggest privatisation or allowing investors to invest in and operate," he added.

The CAAV also asked the transport ministry to release regulations related to conditions for international investors to take part in the local aviation market before officially proposing the plan to the Government.

While awaiting a more open Government policy, several foreign investors have visited Viet Nam for market research, Thanh said.

The investor of Singapore's Changi terminal has studied Hue airport, and a group of US investors also visited the terminal recently, he said.

But Thanh admitted there had been no wave of investors coming and said he hoped that more would come once the proposal is approved.

Many other airports such as Can Tho, Da Lat and Nha Trang are also very potential and attractive to investors, he added.

The CAAV head also revealed that, compared to neighboring countries like Malaysia and Thailand, Viet Nam now only had an average density of airports.

However, many investors thought that many Vietnamese terminals were incapable of generating profits and that only a few could make modest profits, Thanh said. — VNS


Send Us Your Comments:
Name:
Your E-mail address:
Title:
 

VietNamNews may edit your comments and not all emails will be published.

Highlight

HCM City struggles to control influx of substandard produce 1    HCM City struggles to control influx of substandard produce

High demand for farm produce and the sheer variety of ways in which it is brought into HCM City from other localities makes quality control a very difficult task, officials say.

Hoi An hosts silken rendezvous Hoi An hosts silken rendezvous

Top craftsmen and women from seven silk villages in Viet Nam will participate in the Viet Nam Silk Culture Day at Hoi An city's Silk Village centre on December 28.

Local art smashes auction record Local art smashes auction record

Days after noted Vietnamese artist Le Pho's View from the Hilltop set a new auction record, art collector Nguyen Minh still has a lingering feeling of regret.

Long Bien Bridge preservation divides planners 2    Long Bien Bridge preservation divides planners

Architecture and cultural managers discussed Long Bien Bridge's future at a seminar held on Wednesday in Ha Noi.

Malaysia crush VN in AFF semis Malaysia crush VN in AFF semis

Viet Nam suffered a nightmare yesterday at My Dinh Stadium in Ha Noi as they were knocked out of the ASEAN Football Federation-Suzuki Cup.