Author: vietjetair.cargo

Vietnam was one of world’s busiest countries for summer holidays as the tourism recovery rate gradually picked up steam.

Vietnam ranked 19th in a list of 40 most visited countries based on an analysis of flight bookings between July 1 and August 31 by Spain-based travel data and analytics company ForwardKeys.

Most Southeast Asian countries, except Thailand, stood behind Vietnam on the list, including the Philippines at 23rd, Singapore 24th, Indonesia 27th, and Malaysia 36th.

Thailand was 14th and one of the only two Southeast Asian countries to break into the top 20 along with Vietnam.

The number of foreign tourists arriving in Vietnam by air this summer jumped 12% over the same period last year but was 28% lower than pre-pandemic levels, the report said.

Vietnam welcomed 2.3 million international visitors in July and August, equivalent to 80% of the figure during the same period in 2019.

Of these, nearly 2 million visitors arrived by air, about 88% of pre-pandemic levels, according to the Vietnam National Administration of Tourism.

Starting August 15, Vietnam’s new immigration policy accepts e-visa registration from citizens from all countries and territories, with the visa valid for multiple entries and for 90 days.

In addition to granting e-visas to all countries, the government also extended the duration of stays in Vietnam from 15 to 45 days for citizens of 13 countries unilaterally exempted from visas.

Vietnam has received 8 million foreign tourists so far, and striving to receive 12 million foreign arrivals by the end of this year.

In 2019, the year before the pandemic, the country welcomed a record 18 million foreign visitors and earned tourism revenues of VND750 trillion ($30 billion).

Southeast Asian countries are in an international tourism recovery race, relaxing visa policies and boosting tourism promotion campaigns.

According to the latest report by travel firm Outbox Consulting Company, Vietnam’s tourism recovery rate in the first half of this year against the same period of pre-pandemic levels reached 65.7%, lower than neighbors such as Singapore (67.4%), Malaysia (68.3%), Indonesia (67.5%) and the Philippines (66%).

Thailand’s tourism recovery rate was 63%.

Thailand started granting visa exemption for Chinese and Kazakhstan tourists from September 25 while Indonesia recently offered its golden visa policy that allows foreigners to stay up to 10 years.

The Philippines last month trialed its first-ever electronic visa (e-visa) system starting with China.

Source: vnexpress.net

Foreign airlines seeking to expand into Vietnam’s aviation market have frequently been challenged by regulatory restrictions. We discuss the alternative investment opportunities available within Vietnam’s aviation sector. 

The challenge of attracting foreign investment to propel Vietnam’s aviation sector to new heights has long been a concern for industry planners. Demand for aviation services is huge and still growing but attracting foreign capital has been a struggle.

There are a number of factors contributing to the hesitancy among foreign investors to invest in Vietnamese airlines, however, there are alternative investment avenues within Vietnam’s aviation domain.

Indeed, the potential in the aviation sector is huge. However, it has not been tapped effectively. – Dinh Viet Thang, Director of the Vietnam Aviation Administration, in an interview with Vietnam Investment Review (VIR).

Despite facing difficulties penetrating the Vietnamese market with Jetstar Pacific, Jetstar CEO, Gareth Evans, still told Forbes that the Vietnam market still holds significant potential.

“Domestically Vietnam is an incredibly competitive market”, he said, adding “there is 35 percent capacity growth.”

The Vietnamese market is highly competitive, with a potential population of over 100 million people and a strong growth rate. In particular, the low-cost segment dominated by VietJet Air is experiencing rapid growth.

VietJet Air’s remarkable ascent exemplifies the groundbreaking advancement of the low-cost airline concept in Vietnam. During the first half of 2023, VietJet Air’s market share experienced a remarkable transformation; with over 10,000 flights, it was responsible for 37.6 percent of all flights among Vietnam’s domestic carriers.

Notably, VietJet Air stands out as one of the few profitable airlines operating amid the challenging circumstances that have plagued the entire industry, particularly in the aftermath of the COVID-19 pandemic.

The continued expansion of low-cost airlines, coupled with this competitive context, presents a challenging environment for investors seeking to establish a strong presence in the Vietnamese aviation market.

Airline catering

One such area is companies that provide meals and goods for flights. Following a period of stagnation caused by the epidemic, airlines are gradually returning to pre-pandemic conditions, with flights gradually resuming. As travel demand increases, so does the need for in-flight food and beverage services.

Positive signs for Vietnam’s aviation future
There have been some notable improvements and there has been a lot of positive news in the aviation sector of Vietnam, of late.

Firstly, there has been a focus on infrastructure development. According to the master plan for airport and airport system development from 2021 to 2030, the government has approved the construction of eight new airports, bringing the total number to 14 international airports and 19 domestic airports. Of particular significance is the Long Thanh Airport project, which is set to become the largest airport in Vietnam when completed.

There has also been an increase in aircraft purchases. Vietnam Airlines and Boeing recently signed a memorandum of understanding, solidifying a contract for the purchase of 50 Boeing 737 Max aircraft. This deal, valued at US$10 billion is a significant investment in enhancing the airline’s capacity. Similarly, Vietjet entered into an agreement with Carlyle, a company that specializes in finance and global aircraft leasing, to finance Vietjet to the tune of US$550 million in order to purchase additional aircraft from Boeing.

The development of infrastructure and the purchase of new aircraft allows airlines to increase their capacity, open new routes, enhance passenger comfort, and improve operational efficiency. It is a strategic investment to meet the growing needs of the market and remain competitive in the industry. This also helps investors feel more confident about the growth prospects of the aviation industry in Vietnam.

Aviation in Vietnam moving forward
Despite challenges within the legal framework and the competitive market, Vietnam’s aviation industry possesses abundant untapped potential. While the mentioned aspects are noteworthy, there are numerous other opportunities waiting to be explored for statute investors.

Source: vietnam-briefing.com

Vietjet noted in a statement that the new routes will be launched from early September to early December and it will link Vietnam’s major cities and its tourism island of Phu Quoc with Ahmedabad, Hyderabad, Bangalore, New Delhi and Mumbai.

Vietjet, Vietnam’s largest private airline, is gearing up to meet the increasing demand from Indian tourists who are increasingly considering Vietnam as an emerging travel destination.

As reported by PTI, the airline plans to expand its services to India by introducing a new route between Tiruchirappalli (Tamil Nadu) and Ho Chi Minh City, with the launch expected in November, according to airline officials.

In August, Vietjet initiated direct flight services from Kochi in Kerala to Ho Chi Minh City. A senior representative from the airline mentioned that Vietjet currently operates 32 round-trip flights to and from India each week.

“From November, Vietjet is expected to launch a new route connecting Tiruchirappalli and Ho Chi Minh City and we have plans to have an initial frequency of three return flights per week, in order to meet rising demand from travellers in both countries,” PTI reported citing the official, who doesn’t want to be named.

“Vietjet would like to eventually expand its services to all capital cities in India”, he said.

During a recent meeting with a specific group of Indian media representatives in Ho Chi Minh City, the official elaborated on the rationale behind their efforts to expand connectivity. He mentioned that Vietnam is becoming increasingly popular as a tourist destination among Indian travellers.

Additionally, many Vietnamese individuals are also keen to explore one of the oldest civilizations in Asia, contributing to the growing interest in travel between the two countries.

“Vietjet’s entry into the market has increased the total number of passengers travelling between Vietnam and India in the first six months of 2023 to over 3 lakh, nearly five times higher than 70,000 passengers recorded in the same period last year,” he said.

In particular, for routes connecting to Ho Chi Minh City, we have seven round-trip flights from Ahmedabad weekly, and four round-trip flights from Delhi, Mumbai and Kochi, respectively, he said.

For routes connecting to Hanoi, there are seven round-trip flights weekly from Ahmedabad, three round-trip flights from Delhi and another three from Mumbai, he further said.

When asked how Vietjet’s expansion would benefit the Indian economy, the official said the airline’s new routes would deliver sustainable growth in tourism, trade and economy in both Vietnam and India.

“Our commitment and passion is to make air travel more affordable for both Vietnamese and Indian people, help stimulate bilateral growth in tourism, trade and economy, and maintain and grow our presence in the Indian market while ensuring quality service to meet Indian demand,” he added.

Further explaining their future plans for Indian passengers, the official said Vietjet recently added a seventh A330 to its fleet to meet demand in the region. By the end on 2023, the airline expects to have a total of 10 A330s, he added.

Vietjet has been operating for over a decade with around 450 flights daily across 120 routes connecting Vietnam with other countries across Asia and Australia.

(Ha Noi, September 21, 2023) –The International Air Transport Association (IATA) and Vietjet Air signed a training agreement appointing Vietjet Aviation Academy as IATA’s latest Regional Training Partner (RTP) in Vietnam. 

As an IATA RTP, Vietjet Aviation Academy will offer IATA Training courses designed by industry experts. These courses are internationally recognized training programs and are updated frequently to keep pace with the latest regulatory procedures, new standards, and the fast-changing demands of the aviation industry. 

Mr. Philip Goh, Regional Vice President for Asia – Pacific of IATA said: “We are delighted to partner with Vietjet Aviation Academy to provide training in Vietnam. Having enough trained personnel is key as the aviation industry recovers from COVID-19. Our cooperation with Vietjet Aviation Academy will further support the development of aviation talent in Vietnam and in the region.”

Vietjet Vice President cum Chairman of Vietjet Aviation Academy Luong The Phuc shared at the ceremony: “Human Resources are always the focus of Vietjet’s all development plans as well as the aviation industry in general. At Vietjet Aviation Academy, we are providing our trainees with the best learning environment, where everyone can attend IATA courses, receive IATA international certificates and access the most modern training equipment in the aviation industry.”

Vietjet Aviation Academy is the leading modern training and research institute in the region and over the world, currently owning three cockpit simulators (SIM) for pilot training, aircraft and passenger cabin mockups, engines, technical parts and functional training rooms, an olympic standard wave pool, a stadium, and engineer training center, etc. which meet international standard training programs for pilots, cabin crews, rosters, engineers, and aviation staffs. Vietjet Aviation Academy not only meets the training and human resource development needs of Vietjet Air but also the aviation industry in the region and the world. To date, Vietjet Aviation Academy has provided training for nearly 395,000 trainee pilots, cabin crews, engineers, staff.

With the vision of a pioneering academy in the aviation training, a strategic location in the region and the world, and aligned with IATA Training internationally recognized programs, Vietjet Aviation Academy will be a gathering place for  international students to practice, study, create and conquer their dreams of flying and conquering the sky.

The cooperation event between Vietjet Aviation Academy and IATA is part of the sustainable development roadmap, research and application of aviation science and technology, training professional and creative aviation human resources to succeed and shine.

Source: Vietjet Air

Congratulations to JD Airlines on inaugurating their first international all-cargo route connecting Shenzhen and Ho Chi Minh City!

we are so excited to be JD ‘s first interline partner in Vietnam, collaborating to bring e-commerce goods via the VietJet Air Cargo network.

The route is optimized to primarily transport cross-border ecommerce parcels from China, while also facilitating the shipment of key agricultural exports – such as fruit and seafood – from Vietnam.

This cooperation strengthens connections and enhances opportunities in e-commerce and import-export activities between the two countries in particular and globally in general. We are very grateful and appreciate JD’s trust.

This is an important milestone and hopefully, we will soar to new heights together!

Foreign companies including Boeing, Walmart and Amazon are looking for suppliers for Vietnam in a series of events hosted by the Ministry of Industry and Trade.

Representatives of energy firm AES, retailer Carrefour, sports equipment retailer Decathlon, furniture company IKEA, retailers Aeon, Uniqlo and Central Group, among others, were present at the Export Forum 2023: Connecting International Supply Chains on Wednesday in Ho Chi Minh City.

Oliver Langlet, CEO of Central Retail in Vietnam, said that the domestic manufacturing sector had been developing well in the last 30 years as shown by many high-quality products and the industry’s efficient workers.

Lionel Adenot, CEO of Decathlon Vietnam, said that the country had a big opportunity to be a key factor in the global supply chain.

Companies should make early plans and prioritize domestic raw materials while limiting environmental impact, he added.

Deputy Ministry of Industry and Trade Do Thang Hai said that the participation of businesses from over 30 countries and territories would help push Vietnam deeper into the global supply chain.

In the first eight months, Vietnam’s trade reached $435 billion with a trade surplus of over $20 billion.

Source: e.vnexpress.net