Việtnam’s Aviation Sector Soars with Strong Post-Pandemic Growth

Hanoi, The Gulf Observer: Việtnam’s aviation industry is demonstrating a robust post-pandemic rebound with double-digit growth in both passenger and cargo volumes this year, according to the Civil Aviation Authority of Việtnam (CAAV).

Data released by the CAAV shows that from January to November, the sector handled 69.3 million passengers—an increase of 10.8 per cent compared to the same period last year. Cargo throughput also surged by 18.5 per cent to reach 1.2 million tonnes. Domestic passenger numbers rose 7.4 per cent to 30.9 million, while international travellers climbed 13.6 per cent to 38.4 million.

For the full year, the CAAV forecasts passenger traffic to reach 84 million, up 11.4 per cent year-on-year, and cargo volume to hit 1.4 million tonnes, reflecting an 18 per cent rise.

CAAV Director Uông Việt Dũng attributed the strong performance to growing travel demand and increased international cooperation. He noted that the upward trajectory is expected to extend into 2026, with passenger numbers projected to grow 13 per cent to 95 million and cargo volume expected to rise 15 per cent to 1.6 million tonnes.

A stable macro-economic environment is seen as a key driver of growth. With national GDP targeted to expand by 10 per cent or more next year, the CAAV anticipates stronger consumer spending and tourism activity, which will further bolster the aviation sector.

Regulatory reforms and major infrastructure upgrades are also poised to support expansion. Key projects include the first phase of Long Thành International Airport and upgrades to Gia Bình and Phú Quốc airports, which will significantly enhance sector capacity upon completion.

The CAAV emphasized the need to address infrastructure bottlenecks and accelerate the expansion of major airports to ease congestion. It also recommended tax and fee incentives to help airlines restructure and strengthen their financial resilience, along with continued reforms in visa and tourism policies to attract more international visitors.

However, the authority cautioned that the industry still faces potential risks such as geopolitical instability, fluctuations in fuel prices, and exchange rate and interest rate volatility, all of which could affect travel demand.

A recent analysis by SHS Security predicts that Việtnam’s aviation market could grow by 5–6 per cent annually, serving approximately 150 million passengers by 2035 and 200 million by 2040—up 1.9 times and nearly 2.5 times, respectively, from pre-pandemic levels.

Việtnam currently operates 22 airports, including nine international and 13 domestic, with a combined design capacity of 106.5 million passengers per year. Under the national airport system development plan for 2021–2030, the country aims to expand this to 33 airports—14 international and 19 domestic—with a total capacity of 275.9 million passengers and 4.1 million tonnes of cargo annually.