The Vietnamese aviation industry has been growing at a rapid pace. VietJet now has 325 aircraft on order, while Bamboo Airways are still working to launch services. In fact, over the last decade, the Vietnamese aviation industry has grown by a whopping 17.4%. In the same decade, Vietnam’s GDP increased by 225%. As such, Vietnam now has one of the fastest growing aviation industries of any country in the world. Simple Flying takes a look at why the country’s aviation industry is growing so much.
Vietnam is receiving many more tourists than it used to. In 2017 airlines in Vietnam carried 94 million passengers. Of these, 13 million were foreign. This means almost 14% of passengers were international visitors, while we can also assume that a fair number were domestic tourists. The tourism industry in Vietnam is rapidly expanding. In fact, the 2017 figure was a growth of 16% since 2016, and the number of passengers carried is currently expected to grow by a further 16% by 2020. With the number of passengers rising, the number of seats will also have to rise to keep up.
Almost all of Vietnam’s airlines are currently expanding. VietJet currently has 325 aircraft on order from Boeing and Airbus with a current fleet size of 56, this marks an almost 700% increase in the airline’s fleet size. However, VietJet isn’t the only carrier that is expanding. Air Asia is currently looking to increase its services to Vietnam. Later this month, the airline is set to launch a new route from Kuala Lumpur to Phu Quoc. This will be in addition to the 4 other routes which the airline offers into the country. These flights operate to Ho Chi Minh, Da Nang, Hanoi and Nha Trang.
There is also Bamboo Airways, the startup airline which is set to become Vietnam’s 5th carrier. The airline was eyeing up the first flight on October 10th, however, this was missed. Reuters reports that the airline had not received its license from the Vietnamese Ministry of Transport. Now it looks as though the airline is aiming to commence flights at the end of the year, however, it is not clear when the license will be issued.
Trouble For Vietnam Airlines?
The increase in competition from other airlines could spark a fair bit of trouble for flag carrier Vietnam Airlines. As the competition is primarily coming from low-cost carriers, passengers could be drawn away from the national airline. We know that more people are going to travel given the fast pace that the country’s GDP is growing at. As such, it wouldn’t be a surprise if these new passengers would likely choose the low-cost option. As Vietnam Airlines is state-owned, it is unlikely that it would run into too much difficulty.
What do you make of the Vietnamese aviation industry’s rapid growth? Let us know in the comments down below!