Following a major expansion between 2017-2018, Phu Quoc International Airport became an important international gateway. - AFP
HANOI (Vietnam News/Asia News Network): Local and foreign experts weighed up the benefits of investing in small airports, and whether such plans could help local economies grow.
The issues were discussed at a round table held on Tuesday (Oct 11) in Hanoi by Vietnam Investment Review with the participation of speakers from local and international organisations.
According to the International Air Transport Association (IATA), Vietnam ranks first on the list of 25 countries with the fastest recovery in the domestic aviation market post-pandemic.
Before the Covid-19 pandemic, the country's aviation sector had been growing at a double-digit rate, averaging 15.8 per cent annually.
The IATA forecasts that by 2035, Vietnamese airlines will serve up to 136 million passengers and contribute $23 billion to GDP.
However, the existing airport system, especially small airports such as Con Dao, Cat Bi, Phu Quoc, Lien Khuong, and Cam Ranh, is overloaded.
In Vietnam, airlines and airports contribute significantly to the economic growth of localities and the wider country.
In 2019, the aviation industry, including passenger spending, contributed US$12.5 billion to the country's GDP.
Michel Werson, chief economist at Naco – part of Royal HaskoningDHV – said: “Along with the role of transport linkage, small airports will contribute to creating many other economic values.
Notably, they will create benefits for investors and generate jobs for people. The small airport is a factor to attract investment capital inflow to localities and then contribute to the state budget.”
Small airports would also wake up the tourism potential of various localities.
For example, following a major expansion between 2017-2018, Phu Quoc International Airport had been an important international gateway to many iconic destinations and made significant contributions to the socioeconomic development of the 'Pearl Island.'
Before the pandemic, Phu Qoc's economy was growing by an average of 27.52 per cent per year, and tourism revenue was rising by up to 43 per cent per year.
Cam Ranh International Airport was another outstanding example. In 2004, the airport only served 270,000 passengers.
In 2019, the airport saw tourist arrivals grow nearly 40-fold, receiving over 10 million passengers, of which more than 3.5 million were international tourists.
The government approved an upgrade for Cam Ranh International Airport to have an annual capacity of 25 million passengers by 2030 and 36 million by 2050.
The ground-breaking ceremony of Sapa airport in March 2022 has turned the dreams and aspirations of provincial leaders and local ethnic minorities into a reality. Once completed, the airport is expected to boost the economy and tourist development in Lao Cai.
Confronted by ever-crowding airports, experts at the roundtable agreed that the construction of a major airport was needed to accommodate the soaring growth.
At the roundtable, Nguyen Trong Hai, Vice Chairman of Lao Cai Provincial People's Committee, said Lao Cai is a mountainous province with difficult terrain but is blessed with natural beauty and cultural identity.
With a determination of making tourism a pillar of development, the provincial leaders had shown concerns about how to develop a synchronous infrastructure and transport system for the province, including the construction of an airport.
Hai said his province had sought more experts on consulting and building Sapa airport with an expectation that when the project is completed, it will help increase the number of tourists to the province.
At the discussion, experts emphasised the need to take care of the master plan for the development of airports nationwide in 2021-2030.
