ACV backs private sector involvement in entire airport projects

Thanh said in an interview with the Vietnam News Agency that Vietnam is forecastto have one of the world’s fastest-growing aviation industries in the years ahead. Therefore, its sustainable development is critical.

Sustainable development applies toall aspects of an airport, from State management to infrastructure, including airports, flight control, air services, passenger terminals and aprons, he said.

He pointed outthat the Governmenthas assigned ACV to develop, manage and operate infrastructureat22 airports. Inthe short term, the corporation will pay special attention to its existing systems for the sake of aviation safety and security.

ACV wants more private sector capital for airport development, he said, butthe investment model of the Van Don International Airport in the northern province of Quang Ninh is a good example.

Vietnam’s private property conglomerate Sun Group has injected nearly VND7.7 trillion into Van Don airport, the first ever developed under the build-operate-transfer format in Vietnam.

Whenan airport is being constructed, having its components developed by severalprivate investors affects the investment and business plan of ACV, Thanh remarked.

He cited a proposal to build an airport in the northern mountainous province of Dien Bien at an estimated cost of around VND5.5 trillion, someVND3.77 trillion of which will be used for the take-off zone, while VND1.7 trillion from public-private partnerships will be allocated for development of a passenger terminal.

In this case, the Governmentwill have to providemost of the funding for the take-off zone,where capital recovery will be difficult. He said that if ACV is in charge of the airport’s construction, it would be willing to develop take-off and terminal zones.

He noted that having earmarked VND25 trillion, the corporation is expected to raise extra funding of some VND85-87 trillion between 2019 and 2025 to develop the third passenger terminal for the Tan Son Nhat International Airport in HCMC and the first phase of the Long Thanh International Airport in the southern province of Dong Nai.