Investors’ airport dream to take off

Investors will have golden chances to invest into profitable facilities at Vietnam’s planned flagship airport.

The Ministry of Transport (MoT) recently unveiled the Long Thanh international airport investment plan to take shape 40 kilometres from Ho Chi Minh City.

The plan was prepared by Vietnam’s Southern Airport Corporation and Japan Airport Consultant Inc.

Mai Van Hong, deputy director of MoT’s Transport Infrastructure Department, said the government was expected to approve the investment plan early next year.

“After the plan is approved, we will call for investment from private investors for profitable facilities while non-profitable facilities would be funded by state budget and official development assistance sources,” he said.

The $6 billion investment plan covers runways, offices and other non-profitable facilities, accounting for 60 per cent of the total capital.

Facilities including a $1.4 billion terminal, a $230 million warehouse, a $600 million airplane maintenance area and a $37 million car-parking site will be offered to private investors.

“This is a big chance for private investors to be involved in the biggest and most important airport project in Vietnam. They can invest under the build-operate-transfer or public-private partnership forms,” said Hong.

Once completed, it will have the throughput capacity of about 100 million passengers per year and handle five million tonnes of cargo per year.

The airpot is expected to put the first phase into operation in 2020 with the whole facilities to open its doors in 2030.

By 2020, this airport will handle 90 per cent of international flights and 20 per cent of domestic flights to Ho Chi Minh City.

Inland infrastructure linking to the airports including Ho Chi Minh City-Long Thanh-Dau Giay and Bien Hoa-Vung Tau expressways are under construction.

With 30 per cent aviation sector growth each year, foreign investors like Spanish Garuda Group, United States’ Airis Holding LLC and ADC-HAS Airports are eyeing opportunities to be involved in the Long Thanh project.

Hong said the investment cooperation with private investors would be specifically discussed after the government approved the investment plan.

In 2008, domestic firms Vietnam Airlines, Bank for Investment and Development of Vietnam (BIDV) and Vietnam National Coal and Mineral Industries Group (Vinacomin) established a Joint Stock Investment and Long Thanh Airport Operations Company for speeding up construction of the airport. – VIR

Tags: Vietnam aviation, Vietnam aviation industry, Vietnam aviation market