Critical timing for Vietnamese aviation – IATA
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As aviation authorities in Vietnam execute development plans, industry experts have identified three broad strategic areas to focus on. They include infrastructure, passenger experience, and cargo.
In his keynote address at the Vietnam Aviation Day, International Air Transport Association (IATA) director general and CEO, Tony Tyler, said: “Vietnam is a dynamic and rapidly growing aviation market. The successful development of aviation will pay big dividends to the Vietnamese economy. It must be treated as a strategic asset and handled correctly.”
Vietnam currently ranks 82nd in the World Economic Forum’s Global Competitiveness Report’s Infrastructure Index. In order to address this structural weakness, the government has developed an aviation master plan to develop 26 airports by 2020.
Expansion programmes are already underway at Hanoi and Ho Chi Minh airports, with the new Long Thanh International Airport to be ready by 2020.
In light of this development, IATA urged careful planning and industry consultation in advance of any changes, particularly to the current structure and ownership of Vietnam’s airports.
For example, Vietnam has indicated plans to open its airports to foreign investment and management, and to privatise the Airports Corporation of Vietnam. Offering words of caution, Mr. Tyler said: “To balance the market power of privatised airports, Vietnam needs to establish an effective independent economic regulator that is in line with well-established international norms.”
With regards to passenger experience, Tyler encouraged Vietnam to review visa requirements and to make it a priority to implement the six Fast Travel initiatives covering check-in, self-tagging of baggage, document check, flight rebooking, self-boarding and bag recovery.
“As Vietnam develops its airport infrastructure, it has the opportunity to build them around the self-service expectations of travellers,” said Tyler.
Tyler also highlighted the importance of cargo handling, as in value terms, air freight accounts for one quarter of all goods traded in Vietnam. He urged the implementation of an E-freight system which would help to improve the efficiency of Vietnam’s air cargo industry.
Aviation contributes US$6 billion to Vietnam’s GDP and supports over 230,000 jobs. Between 2008 and 2013, Vietnam’s passenger traffic grew by 96%.
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