Vietnam is the driving force for aviation in Southeast Asia

12 July 2021

Because the number of passengers has grown strongly, there emerge many airlines, which brings out the forecast about the flourishing of Vietnam's aviation market.

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According to the latest CMO report of Boeing, the aviation industry of the Asia Pacific region has lead the global growth rate. The reason is the strong growth of airlines and flight route density in the region. In particular, Vietnam is the driving force for the development of aviation industry in Southeast Asia with the most impressive growth rate.

The development speed of Vietnam aviation is in the top of Southeast Asia

The development speed of Vietnam aviation is in the top of Southeast Asia.

The first factor reinforcing the demand of the aviation industry is always the economic development. It is forecasted that in the next six years, Vietnam's annual GDP growth rate will reach over 6%, much higher than that of other countries in the region. Over the next 15 years, Vietnam's middle class is expected to increase double, with about 15 million people joining the class. This is a key factor driving demand for flights in the world in general and Vietnam in particular.

Within 10 years, the number of direct domestic flights has doubled, the number of non-stop flights between cities has also increased 3.5 times. In the big cities, there are about 30 return flights per day. "The growth of Vietnam's domestic aviation market is extremely impressive. Most of the flight routes in this market are operated by one-way aircraft (6 seats in a row)", The Deputy Director of Marketing of Boeing said.

Regarding to the international market, in just around one year, nearly 50 new routes were opened to and from Vietnam. It is estimated that by the end of 2019, Vietnam will operate about 200 international routes. The international aviation market in this country is growing by 15% annually. In particular, the potential is clearly international long-haul flights. In the next 5 years, the number of Vietnamese aircraft is forecast to double compared to the current 200 aircraft.

Vietnam airport

The rapid development of overloaded aviation and infrastructure is a common problem of the whole world, not only Vietnam.

Assessing the potential and opportunities of new airlines in Vietnam market, Mr. Darren Hulst, the representative of Boeing, gave the example: In the 1990s, it is believed that the United States had almost no growth potential with infrastructure at the time. However, over the past 30 years, the United States has continued prosperity by investing in new aviation infrastructure and maintaining growth rate. That means there are opportunities for new airlines in Vietnam. Considering the emergence of new airlines, healthy competition is positive for the market and helps the aviation industry to be more sustainable and recover better.

According to Boeing's observation, the problem that infrastructure does not meet the growth rate of the aviation market is a concern for many developing countries, not only Vietnam. Besides conducting research and constructing new airports, the optimal way of exploiting the infrastructure system is the best choice for the current aviation industry in Vietnam.

CMO is an annual report by Boeing about the potential of the aviation industry on a global scale and detailed statistics in each country, including Vietnam. This report was first made in 1961. After nearly 60 years of publication, CMO is considered one of the prestigious forecasts in the commercial aviation industry. The analytical data are used in production planning, and shared with partners including state management organizations, government organizations, airlines as well as partners. Forecasts are given to help managers map out a new reasonable investment plan and find solutions to optimize the exploitation of existing infrastructure at the same time.

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