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The Vietnam News

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[Year 2002]

Airports for growth market

The aviation industry is proceeding with a series of projects to upgrade and expand Vietnam's airports in anticipation of the high growth of the domestic aviation market, estimated at 15% annually between now and 2005 and 9% per year through 2010.

Upgrading and modernizing three major airports. According to analysis by the aviation industry, large investments have been poured into modernizing and increasing the capacity of the Noi Bai, Tan Son Nhat and Danang airports, the three largest and most important among airports under commercial operations in Vietnam. Construction of the modern T1 passenger terminal in Noi Bai Airport has just been completed, able to receive four million passengers annually. The capacity of Tan Son Nhat Airport has been increased to five million from three million passengers a year and two runways have been upgraded to be able to accommodate all kinds of aircraft.

Since Noi Bai Airport has only one runway, which will be inconvenient when the number of aircraft landings increases, aviation authorities have decided to build another, the 1B. Work on the runway is being accelerated so that it can be completed by July 2003, in time to accommodate more aircraft arrivals during the SEA Games 2003. Another important project is construction of a new cargo terminal to meet the increasing demand for import and export transport. The terminal is scheduled for completion in 2005 when the aviation industry expects to put into operation a fleet of commercial cargo transport aircraft. Tan Son Nhat Airport is facing imminent overload as the number of passengers is increasing rapidly. Therefore, aviation authorities are urgently preparing plans to build a new terminal capable of receiving seven million passengers a year. The project will cost some US$240 million, with US$200 million provided by Japanese Government credits at a preferential interest rate of 1% per annum. It is due to open in 2006.

Danang, one of the three international airports in Central Vietnam, has two runways capable of receiving various kinds of aircraft but it still lacks a large, modern passenger terminal. According to forecasts by the aviation industry, the aviation market in Central Vietnam will grow with the increase in tourist arrivals and the development of major economic projects in the neighboring regions. To meet the demand, the authorities have submitted to the Government a feasibility study for a modern terminal capable of receiving four million passengers a year. They are seeking funds from various sources to develop the project, estimated to cost US$70 million.

Upgrading Chu Lai and Cam Ranh airports. According to Ms. Nguyen Thanh Ha, deputy director of the Civil Aviation Administration of Vietnam in charge of planning and investment, a VND60-billion project to upgrade the infrastructure of Chu Lai Airport (building terminals and repairing runways) has been approved. Upon operation in mid 2003, the airport will serve tourists, and experts working in Dung Quat IP and the open economic zone, and the transport of industrial equipment and goods. In the first years of operation, the airport may serve commercial purposes but an appropriate number of flights should be taken into account. For the long-term, the aviation industry is drafting a big, capital extensive plan to develop Chu Lai into a major international airport for better operation in the context of the development of the Chu Lai Open Economic Zone, Dung Quat Petroleum Refinery Complex and neighboring industrial parks.

Aviation authorities are also studying the possibility of commercial operation of Cam Ranh Airport pending the Party and Government top leaders' decision on the operational purpose for the airport. Other airports. Apart from the major airports mentioned above, Ha says three airports that are considered as having fast development potential in the future are Phu Bai (Hue), Cat Bi (Haiphong) and Lien Khuong (Dalat). These airports do not have international scales but the Government has allowed them to receive foreign aircraft in case of need to serve both domestic and international transport. Phu Bai Airport has already received international flights to serve tourists. However, as the airport has great potential for development, aviation authorities are considering enlarging the terminal.

The authorities are also weighing the possibility of enlarging the runway and terminal of Lien Khuong Airport and the terminal of Cat Bi Airport. A Chinese airline has proposed operating flights to Cat Bi to serve tourists visiting Ha Long Bay.

Another airport under consideration for upgrading is Dien Bien in the northwest region of Vietnam. Lao aviation authorities want to operate flights to Dien Bien to serve tourism and commerce. Plans for upgrading Ca Mau Airport in the southern tip of Vietnam are also in the pipeline to serve the transport of passengers and export agro and fisheries products. "Many new red points have been added to the national airport system to prepare for the development of public aviation services in the future. They are essential for the future development of the aviation industry. However, our investment policy is efficiency, no wastefulness and satisfaction of demand," Ha noted.

By Cao Cuong - The Saigon Times Weekly - June 29, 2002.


Chu Lai airport vital to regional economic development

Nguyen Xuan Phuc, chairman, Quang Nam Province The Government has endorsed a proposal by the Civil Aviation Administration of Vietnam (CAAV) and Vietnam Airlines to re-open Chu Lai Airport so that it can accommodate the first flight after 1975 by the second quarter of next year. This is good news, not only for Quang Nam Province but also for Quang Ngai, north of Binh Dinh and Gia Lai, especially Dung Quat IP and Chu Lai Open Economic Zone.

In the immediate future, the bulk of passengers using Chu Lai Airport will be experts and personnel working in Dung Quat IP and Chu Lai Open Economic Zone, as well as people in southern Quang Nam and Quang Ngai provinces. But in the long run, Chu Lai will become a cargo transshipment airport. It will also serve international tourists who come to explore the local tourist sites, including two World Cultural Heritage sites. Chu Lai Airport is surely a crucial item in the development plan for Dung Quat IP, and is the pivotal phase in the development of Chu Lai Open Economic Zone. The restoration of Chu Lai will put into operation again the infrastructure of an old airport that requires an enormous funding if we were to build it now. Chu Lai will also facilitate domestic cargo transportation as well as export.

For Chu Lai to be operational by the second quarter of next year, we will have to build a terminal, and reinstall the communications network. Quang Nam Province is building some infrastructure works outside the airport such as the road system and the power grid. We hope both the CAAV and Vietnam Airlines will make an all-out effort to restore Chu Lai so that the airport will work in line with the schedule.

Opening time: the second quarter of 2003 Trinh Ngoc Thanh, vice head, Market Management Board, Vietnam Airlines Quang Nam and Quang Ngai provinces constitute part of the vital economic zone in Central Vietnam. They are the gateway to Dung Quat IP and Chu Lai Open Economic Zone. Therefore, a direct flight to Chu Lai will make the provinces more attractive in terms of investment and tourism, contributing to socio-economic development in the region. Chu Lai has the potential to become an important international transshipment airport, as it is favorable geographically. It is only 100km away from Danang International Airport and is on the upgraded trans-Vietnam Highway 1A.

In the long run, the restoration of Chu Lai is part of the Government's comprehensive plan for airport development. In April, the CAAV forwarded a report to the Government, asking for permission to reinstate Chu Lai for civil aviation activities in the second quarter of 2003. Our proposal was approved by the Government Office. Although Chu Lai was once a military airport during the war, the facilities that can be used after minor repairs are only the runway and the apron. We have to build the terminal, and the power and communications systems. We will try our best to keep the work progress on schedule. Currently, the local demand for air transport in the vicinity of Chu Lai Airport is not high, but we expect it to soar in the future.

Initially, there will be three flights a week linking HCM City with Chu Lai, using ATR-72 or Fokker 70 aircraft. Later we will consider flights of bigger jetliners such as A320s to Chu Lai, as well as those connecting Hanoi and Chu Lai.

The Saigon Times Weekly - June 29, 2002.