Vietnam Overtakes Thailand to Become Southeast Asia’s Second-Largest Aviation Market

Hanoi, The Gulf Observer: Việtnam has overtaken Thailand to become Southeast Asia’s second-largest commercial aviation market by available seats in August, according to OAG, a global provider of aviation data and analytics.

Việtnam recorded 7.3 million available seats during the month, representing a 10 percent year-on-year increase and the fastest growth among the Southeast Asian aviation markets analysed by OAG.

The rise reflects growing travel demand in Việtnam, as well as the country’s advantage of having several major airports serving different regions, OAG said.

The aviation data provider also highlighted cooperation between Vietnamese tourism companies and airlines as another factor supporting market growth. Tour operators frequently reserve large blocks of seats and conduct joint promotional and marketing campaigns, enabling airlines to fill flights more efficiently.

The development of new destinations is also creating additional opportunities for the expansion of Việtnam’s international air network.

Thailand ranked third in the region with 7.2 million available seats, marking a 1.7 percent decline compared with the same period last year.

According to OAG’s August Southeast Asia Aviation Market Briefing, Indonesia retained its position as the region’s largest aviation market with 11 million seats, up 4.3 percent year on year.

Malaysia and the Philippines recorded declines in capacity, with 5.4 million and 4.8 million seats respectively, representing decreases of 6.4 percent and 5.7 percent.

Overall airline capacity in Southeast Asia increased by 0.8 percent year on year to 51 million seats in August. Domestic capacity grew by 1.4 percent and accounted for 45 percent of the region’s commercial aviation market.

International capacity remained largely stable, increasing by 0.4 percent to 28.2 million seats and representing 55 percent of the regional market.

The expansion in aviation capacity comes as passenger traffic through Việt Nam’s airports continues to grow. According to the Civil Aviation Authority of Vietnam (CAAV), more than 76 million passengers travelled through the country’s airports between January and July, an increase of 7 percent compared with the same period last year.

International travel emerged as the strongest growth driver, with nearly 30 million passengers, representing an increase of more than 11 percent year on year. This was almost three times the growth rate recorded in domestic passenger traffic.

Domestic passenger traffic exceeded 46 million, rising by more than 4 percent during the period.

Vietnamese airlines carried nearly 35 million passengers in the first seven months of the year, an increase of more than 3 percent year on year. International passengers accounted for more than 11 million, up 1 percent, while domestic passengers exceeded 23 million, representing growth of more than 4 percent.

The CAAV expects Việt Nam’s aviation sector to serve approximately 94 million passengers and handle 1.6 million tonnes of cargo in 2026, representing year-on-year increases of 13 percent and 9.3 percent, respectively.

To support these targets, aviation authorities plan to optimise runway scheduling, improve airport operational efficiency and strengthen oversight of airline operations to maintain aviation safety.

Authorities will also support airlines in expanding their fleets and increasing capacity, particularly during peak travel periods.

The CAAV is expected to continue working with foreign aviation authorities to facilitate the opening of additional international routes, while monitoring global economic conditions, geopolitical developments and fuel price fluctuations that could affect the aviation sector.

Infrastructure development remains another key priority. Authorities are accelerating major airport planning and construction projects and preparing to reopen Liên Khương Airport and Cà Mau Airport following upgrades.

Preparations are also advancing for the future operation of Long Thành International Airport and Quảng Trị Airport, projects expected to significantly expand Việt Nam’s long-term aviation capacity and support continued growth in the country’s commercial aviation market.