VIỆT NAM SEES ROBUST GROWTH IN AIR TRANSPORT MARKET OVER PAST DECADE

Việt Nam registered the highest growth rate among the top 10 markets in the region at 121 per cent, driven by the country’s strong economic performance and growing appeal as a travel destination.

Passengers queue to check in at Nội Bài International Airport. Việt Nam jumped from the 11th largest air passenger market in the Asia-Pacific in 2014 to the eighth largest in 2024. — VNA/VNS Photo Quốc Khánh

HÀ NỘI — Việt Nam has seen strong growth in its air transport market over the past decade, jumping from the 11th largest air passenger market in the Asia-Pacific region in 2014 to the eighth largest in 2024, according to the International Air Transport Association (IATA).

It also registered the highest growth rate among the top 10 markets in the region at 121 per cent, driven by the country’s strong economic performance and growing appeal as a travel destination.

Seven of the top 10 international markets for travel to Việt Nam more than doubled over the past decade. The IATA’s statistics showed that traffic from India grew tenfold.

The simplification of visa processes and the increase in direct flights – particularly between New Delhi and Mumbai in India and HCM City and Hà Nội in Việt Nam – have boosted tourism.

Annual trade turnover between Việt Nam and India also gained 11 per cent over the past decade, reaching US$15 billion last year.

Traffic from the Republic of Korea (RoK) also expanded significantly, rising more than five times in the past 10 years. The RoK is by far the largest source of international arrivals for Việt Nam, at more than twice that of China, and the second largest source of foreign direct investment in 2024.

Domestic traffic grew at 107 per cent, lagging behind the 150 per cent growth in international traffic during the same period. Domestic traffic in 2024 stood 24 per cent below that in 2022, when domestic travel recovery was in full swing post-pandemic.

This may be due in part to the fact that Vietnamese carriers have faced capacity constraints, with some aircraft grounded due to engine issues, and aircraft capacity being diverted to the fast-growing international segment.

The IATA also pointed out that US tariffs could impact the air cargo sector. Revenue in the sector grew by more than 30 per cent year-on-year in 2024, with passenger revenue still accounting for the bulk of total revenues for Vietnamese carriers at up to 71 per cent of the total.

An increasing propensity for travel and the strengths of Việt Nam’s tourism industry will continue to support the longer-term outlook of the aviation sector in the country.

According to Civil Aviation Authority of Việt Nam statistics, the country saw double-digit growth in traffic through airports in the first five months of this year, reaching 49 million, up more than 10 per cent over the same period last year.

The number of international passengers reached more than 19 million, up 13 per cent, while domestic passengers dropped by 8 per cent to 30 million. — VNS

Source: VNS