Vietravel Airlines and Asean Cargo Gateway sign a cooperation agreement on investing and developing air cargo services in HCM City on September 8. — Photo courtesy of Vietravel Airlines

HÀ NỘI — Vietravel Airlines has signed a cooperation agreement on investing and developing air cargo services with Asean Cargo Gateway.

To diversify products and complete the ecosystem of Vietravel Corporation, Vietravel Airlines and Asean Cargo Gateway (ACG) officially announced the cooperation with an investment contribution ratio of 51 per cent to 49 per cent. Vietravel Airlines and ACG wish to promote cargo business, air cargo exploitation, and cargo agency for airlines in the region.

Vũ Đức Biên, President & CEO of Vietravel Airlines, said: "The aviation cargo market still has a lot of potential and has not been fully exploited. As a result, the supply chain is broken. At the same time, the commodity market in Việt Nam and China, is considered the fastest growing region with the highest annual GDP in the world and the highest proportion of the working-age population in the world. Hence, production bases will gradually move to this area next to China - world's largest factory ".

Việt Nam is considered a bright and potential candidate for the production shift through the assessment. This will be an opportunity for the logistics industry in general and air freight, in particular, to take off shortly. For that reason, Biên said this was the right time to build and promote the first Air Cargo segment in Việt Nam, combining ACG's experience in logistics and Vietravel Airlines' air transportation.

ACG representative said: "To meet and promote the domestic and international logistics industry, especially with great potential markets, brings firms in Việt Nam closer to the global market. Besides, signing a cooperation agreement with Vietravel Airlines is a memorable milestone, bringing the dream of becoming Cargo Airlines in Việt Nam soon to come true."

The airline will focus on transporting goods between Việt Nam and large factories in Asia such as China, Malaysia, Indonesia, and Thailand on a fleet of dedicated B737-800F aircraft for cargo, with two to four units in the first year, which is expected to double in the next year.

It is the effort of Vietravel Airlines and ACG to improve air transport logistics, becoming the first Cargo Airlines in Việt Nam, a bridge for Việt Nam's exports to reach the global market. This cooperation contributes to improving the competitiveness of international connectivity for exports, especially agricultural products. — VNS