AVIATION ECONOMY SEEN AS CATALYST FOR BREAKTHROUGH GROWTH IN VIETNAM

Vietnam is embracing the concept of an aviation economy, expanding the role of airports from transport infrastructure into integrated economic ecosystems.

Aviation economy is emerging as a comprehensive ecosystem driving growth in Vietnam. Photo: Masteri

This shift is expected to drive growth by combining passenger and cargo transport with tourism, services, and urban development.

The Vietnamese government’s recent directives linked to major infrastructure projects, including the Gia Binh International Airport project in Bac Ninh Province, have highlighted the new approach.

Located at Vietnam's northern gateway, Gia Binh International Airport is positioned close to downtown Hanoi, with direct connections to major economic corridors as well as the country's logistics and industrial networks.

Unlike conventional airports, Gia Binh International Airport is designed around three core pillars, including high-standard aviation infrastructure serving as the operational hub; a logistics-commerce ecosystem that creates added value; and urban, service, and lifestyle developments designed to attract investment and skilled talent.

The project also reflects the growing role of the private sector in shaping new economic structures.

Masterise Aviation Infrastructure JSC, a member of Masterise Group, is the investor of Gia Binh International Airport, demonstrating the company's ability to undertake large-scale integrated infrastructure developments.

About 80 percent of international visitors to Vietnam arrive in the country by air. Photo: Masteri

According to the Civil Aviation Authority of Vietnam, about 80 percent of international visitors to Vietnam arrive in the country by air, while tourists make up roughly 70 percent of the total passenger traffic handled by domestic carriers.

In the first quarter, Vietnam welcomed 24.1 million visitors, up over 16 percent year on year, with international arrivals rising more than 19 percent to reach nearly 14 million.

Uong Viet Dung, head of the Civil Aviation Authority of Vietnam, recently emphasized the strategic link between aviation and tourism, calling it vital for socio-economic development and global integration.

Alongside passenger transport, air cargo is expanding rapidly, driven by e-commerce and high-tech exports that are turning aviation logistics into a fast-growing business segment.

Vietnam aims to handle 1.6 million metric tons of air cargo in 2026, up 15 percent versus last year.

Bui Doan Ne, vice-chairman of the Vietnam Aviation Business Association, said Vietnam still has significant room to expand its air cargo market.

He stressed that future airport and transport network planning should strengthen connectivity among different transport modes to improve cargo collection and distribution.

Studies show that every aviation job can create 24 indirect jobs in related sectors, and every US$1 invested in airports can generate more than $300 in economic value.

The airport city model, in which aviation services serve as the foundation for broader economic clusters, has been successfully implemented at airports such as Frankfurt in Germany, London Heathrow in the United Kingdom, and Changi in Singapore.

By adopting an industrial ecosystem approach, next-generation airports maximize operational efficiency while stimulating regional economic growth.

Airports expand non-aviation revenues through retail, real estate, and parking services. Photo: Masteri

Many airports worldwide are now embracing this model, developing diversified industrial ecosystems spanning infrastructure, logistics and high-margin commercial services that generate substantially greater economic value than passenger transport alone.

American management consulting firm McKinsey & Company said airports are creating sustainable new revenue streams by transforming from static infrastructure assets into smart commercial and logistics ecosystems.

The company added that airports can boost earnings before interest, tax, depreciation, and amortization (EBITDA) by 6-8 percent through digital transformation, AI, and automation.

Non-aviation revenues such as retail and property development also provide higher margins, while airports act as magnets for foreign investment and cross-border e-commerce.

Airports Council International (ACI World) echoed this view, saying that non-aviation revenues have become an increasingly important contributor to airport financial performance during the industry's recovery, thanks to their higher profit margins.

Source: Tuổi Trẻ News