Inviting private investment in Vietnam's airports

The Ministry of Transport has just established the Department of Public-Private Partnership. This agency will prepare a legal framework to attract domestic and foreign private capital sources to invest in transport infrastructure in Vietnam, including airports.

In the coming time, Vietnam will mobilize more private capital to invest in airports. In the photo: Rach Gia airport

Speaking with reporters, Mr. Nguyen Vu Micheal, business development director in Vietnam of ADC & HAS Airport Development Group (specializing in airport development and management based in the US), affirmed that the unit is intending to invest in the aviation and airport sector in Vietnam.

“We have been present in Vietnam since 2010 because we see that the investment environment for the aviation and airport sector in Vietnam is very potential: the number of Vietnamese people traveling by air is increasing, the aviation market growth is always double digits” - Mr. Nguyen Vu Micheal said. In particular, according to Mr. Nguyen Vu Micheal, international airlines are increasing their flight routes to Vietnam, the number of international tourists to Vietnam is also increasing... Therefore, ADC & HAS wants to bring capital, techniques, and civil management technology to Vietnamese airports and hopes to have the opportunity to work together with Vietnamese airports. Mr. Jeff Scheferman, Chairman of ADC & HAS Group, came to Vietnam to survey Chu Lai Airport (Quang Nam).Male) and had meetings with representatives of the Ministry of Transport to calculate future investments.

Attracting private investment into airport operations in Asia is also just starting to emerge and is not yet widespread. Mr. Nguyen Vu Micheal said that in the region, there is only Siem Reap International Airport with the participation of French private capital. India,Korea,IndonesiaThere is also private investment capital involved in airport operations.

In Korea, in early 2012, ADC & HAS Group and two Korean partners bought ownership of Cheongju International Airport, 160km south of Seoul, for 25.5 billion won (equivalent to 22.6 million USD) for 30 years. This is unprecedented in Korea, and it is a dual-use airport (used by both military and civilians), so the Korean government's agreement to allow private ownership of the airport for 30 years may create a solution for a series of other airports in the country.

Mr. Nguyen Vu Micheal said he wants to have the opportunity to cooperate in a joint venture with Vietnam Airports Corporation with the goal of having as many international and domestic airlines fly there as possible.There are many cooperation models in the aviation sector, the issue is that both sides can discuss and decide. In fact, the model of cooperation between the state and the private sector in investing and exploiting airports has been implemented in many countries around the world. "I understand that airports are always national assets, we only bring capital, technology, civil management experience, in short, we only exploit commercially. Therefore, I think the joint investment/exploitation model with the government holding the majority of ownership in the joint venture, while exploiting air traffic control, immigration, customs and airport security is appropriate" - Mr. Nguyen Vu Micheal said.

According to Tuoitre-M