Aviation still ‘struggling’ to get back on track
A host of obstacles need to be addressed for Vietnam’s aviation sector to return to some semblance of normal.
Obstacles facing Vietnam’s aviation sector and measures for its future recovery and development were discussed by analysts and observers at the “Restoring and developing Vietnam’s aviation industry in the new context” conference on May 24.
According to the Director of the Civil Aviation Authority of Vietnam (CAAV) Dinh Viet Thang, although the sector has seen signs of recovery this is limited to the domestic market. “The international market, which accounts for more than 60 per cent of the revenue of Vietnamese airlines, is still facing difficulties returning to pre-pandemic levels,” he said.
A representative from the Vietnam Aviation Business Association, meanwhile, said the recovery and development of Vietnam’s aviation sector will be subject to continued “resistance” from factors such as Covid-19, the global and domestic economic situation, the capacity of enterprises to restructure, and the level of integration in the sector.
For Vietnam’s aviation sector to recover and develop, the conference heard, the State needs to adopt support policies and remove difficulties, while boosting private investment and public-private investment to diversify and upgrade infrastructure.
Mr. Thang also suggested that in addition to the efforts of each enterprise in regard to financing and supplementing capital from different channels, a proposal from the Vietnam Aviation Business Association should also be considered: that the government offer special support packages to aviation businesses, such as refinancing with 0 per cent interest rates for a maximum term of three years, or provide guarantees to those eligible to borrow.
