Vietnam is looking to raise $15.8bn to build and expand airports over the next 10 years, according to the Civil Aviation Authority of Vietnam (CAAV), with a further $37bn to be spent between 2030 and 2050. Â
The new build projects include the first phase of the Long Thanh International Airport to serve Ho Chi Minh City, the Sa Pa Airport in the northern province of Lao Cai and Quang Tri Airport in the centre of the country.
Among the existing airports to be expanded are the Tan Son Nhat International Airport in Ho Chi Minh City, the Noi Bai International Airport in Hanoi, the Da Nang International Airport and the Cam Ranh International Airport near the southern port of the same name.
The largest schemes are Long Thanh (see further reading) and the expansion of Noi Bai, which are set to cost around $5bn each.
The expansion of Tan Son Nhat, Da Nang and Cam Ranh airports is set to cost over $5bn in total.
Some of the funding for the work will come from state loans and grants, but also private investment and public-private partnerships.
The CAAV has proposed that the government approves low-interest loans, guarantees bank loans and issues favourable tax and land policies to attract private investment in the aviation industry.
The VnExpress news site quoted Tran Quang Chau, deputy chairman of the Vietnam Association on Aviation Science and Technology, as saying private investment will be essential in fulfilling the projects’ funding requirements.
Hoang Van Cuong, a member of the National Assembly’s Financial and Budget Committee, said state coffers should only be used for essential elements of projects, such as construction of runways and land clearance.
He added that private investment should be sought for terminals, storage facilities and aprons.
Image: Noi Bai International Airport, near Hanoi (Tycho/CC BY-SA 3.0)Â
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