VietNamNet Bridge – The Ministry of Transport (MOT) is considering offering concessions to investors in Phu Quoc airport and part of Noi Bai airport in an aim to attract capital for other airport projects.

The issue was discussed at the ministry’s meeting on February 25, according to Thoi Bao Kinh Te Sai Gon. This is a part of a plan to call for public capital to develop airport infrastructure.

An MOT official revealed that the Civil Aviation Authority of Vietnam (CAAV) has officially proposed to offer concessions for the Phu Quoc Airport or the airport’s terminal.

No final decision has been made. However, the official said the project is highly feasible.

Phu Quoc Airport was built with VND3 trillion in capital sourced from Airport Corporation of Vietnam (ACV), thus it would be feasible to transfer the airport development rights to private investors.

Nguyen Danh Huy, head of MOT’s board of management for PPP (private public partnership) projects, said that capital could also be sourced by putting airline businesses up for equitization.  

When asked if MOT’s plan would attract private investors, an analyst said the aviation industry is an attractive sector for investors, and “everything could be sold”.

MOT’s Minister Dinh La Thang also noted that he does not see any obstacles in calling for public investment in airports because it is a profitable sector.

He asked that a proposal be drawn up to sell all of Phu Quoc Airport and offer concessions to investors in other airports, and to sell the E lobby at Noi Bai Airport’s T1 terminal.

MOT has planned airport upgrade plans this year, including one expanding Tan Son Nhat Airport and one building new runways at Cam Ranh Airport.

In late 2014, MOT kicked off a series of projects on upgrading terminals at Cat Bi Airport in the northern city of Hai Phong, Phu Cat Airport in Binh Dinh and Tho Xuan Airport in Thanh Hoa provinces.

The capital for the projects’ implementation would be arranged by ACV, a 100 percent state-owned enterprise.

To date, MOT has only succeeded in mobilizing resources for pilot training programs. It is still difficult to call for public investment in air infrastructure.

Nguoi Lao Dong quoted sources as reporting that Vietjet Air, the private air carrier, has officially asked for preferential concessions to invest in the new T1 terminal and the old T2 terminal at Noi Bai airport for a 20-year period.

MOT has scrapped plans to build seaports and instead will expand several airports this year.

However, the Civil Aviation Authority of Vietnam (CAAV) admitted that airport projects are not attractive to investors. The government in the past planned to develop airstrips at Cam Ranh Airport and other projects under the investment modes of PPP (private public partnership), BT (build, transfer) and BOT (build, operate, transfer).

However, only the Phan Thiet Airport project has been developed under the BOT mode.

Kim Chi