Vietnam Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in Vietnam, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals.
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Aviation
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Overview

Vietnam’s aviation sector is approaching pre-pandemic passenger levels and ranks 8th in the air passenger market in the Asia Pacific region in 2024. This is supported by the country’s resilient economy, a strong rebound in tourism, and sustained government investments in aviation infrastructure. Strategically located in Southeast Asia, the aviation industry plays a critical role in Vietnam’s economic development and global integration. In 2024, Vietnam airports handled 109 million passengers, a 3% drop from 2023, witnessing a notable shift in travel trends: 26% rise in international travelers (41 million) and a 15% fall in domestic travel (68 million). Key international markets include South Korea, China, Taiwan, Thailand, and Japan. Air cargo volume grew to 1.5 million tons (up 19%). 

Under its Aviation Development Master Plan (establishing goals for 2030, with a vision toward 2050), Vietnam targets annual growth of 7.5–8.5% in passenger traffic and 8.4–9.7% in freight. By 2030, it aims to handle 278 million passengers and 4.1 million tons of cargo.

To meet rising air travel demand and strengthen its role as a regional aviation hub, Vietnam is undergoing a major transformation–investing heavily in infrastructure, logistics hubs, fleet expansion, air traffic services, and maintenance, repair, and overhaul facilities, which all present opportunities for U.S. companies. In 2023, Vietnam imported approximately $151 million in U.S. Aerospace products, highlighting ongoing bilateral engagement in the aviation sector.

Leading Sub-sectors

Air Fleet Development

Vietnamese airlines are recovering profitably amid growing travel demand, falling fuel prices, and infrastructure upgrades. In 2024, these airlines handled 53.3 million passengers, down 4.5% and 445,000 tons of cargo, up nearly 36% compared to 2023. The fleet includes 220 aircraft and 29 helicopters. They have outlined long-term strategies focused on expanding their fleet and international routes, improving digital operations, and restructuring overall business operations. 

Vietnam Airlines: Vietnam Airlines (VNA) is the national flag carrier, holding a 42% share of the domestic market. In 2024, VNA operated a fleet of 103 aircraft, comprising 6 turboprops, 66 narrow-body, and 31 wide-body aircraft. To expand its network, increase market share, and remain competitive, the airline plans to grow its fleet to 137 aircraft by 2030 (5 turboprops, 95 narrow-body, and 37 wide-body) and to 170 aircraft by 2035, including 52 wide-body and 112 narrow-body jets.
In 2025, Vietnam Airlines concluded a deal to purchase 50 Boeing 737-8 aircraft. VNA also plans to lease or acquire 50 wide-body aircraft by 2035–20 for replacement and 30 for expansion. Additionally, the airline intends to launch a cargo airline in 2026 by converting A321 passenger aircraft into freighters and establishing major cargo hubs at Long Thanh International Airport and Gia Binh Airport.

Pacific Airlines: Pacific Airlines is a low-cost subsidiary of Vietnam Airlines. After four consecutive years of losses, the airline returned to profitability. Its current fleet consists of three Airbus aircraft leased from Vietnam Airlines. 
Vietnam Air Services Company (VASCO): VASCO is a subsidiary of Vietnam Airlines that operates five ATR72 aircraft in a niche market.

Vietjet: A privately owned low-cost carrier (LCC) with a 43% domestic market share. As of 2024, it operated a fleet of 94 Airbus aircraft. Vietjet has placed significant aircraft orders to support its fleet expansion and international growth strategy:

  • 200 Boeing 737 MAX aircraft, with the first 14 scheduled for delivery in 2025.
  • In May 2025, the airline ordered 20 wide-body Airbus A330-900 aircraft, doubling its previous firm order of 40 A330neo.
  • In June 2025, Vietjet signed a memorandum of understanding with Airbus for an additional 100 A321neo aircraft, with an option to purchase up to 50 more.

Vietjet’s long-term strategy is focused on building a modern fleet and expanding its global route network, with over 400 aircraft on order.

  • Bamboo Airways: Bamboo Airways is a hybrid carrier with approximately 8% of the domestic market share. After undergoing leadership changes and corporate restructuring, the airline is showing signs of recovery. It has resumed domestic routes such as Phu Quoc and is expanding international operations to destinations like Taiwan. Currently operating seven aircraft, Bamboo Airways plans to increase its fleet to 10–12 aircraft by the end of 2025 and to 30 in the coming years.
  • Vietravel Airlines: Vietravel Airlines is in a strategic transition following new investment from T&T Group. Supported by T&T’s extensive logistics and infrastructure network, the airline is expanding its fleet from the current two aircraft to six by 2026. Its long-term vision is to develop a comprehensive aviation ecosystem that includes passenger transport, cargo services, tourism, and logistics.
  • Sun Phu Quoc Airways: Officially approved in May 2025, Sun Phu Quoc Airways is set to begin operations in Q4 2025 with an initial investment of approximately $100 million. The airline plans to launch with five narrow-body aircraft and aims to grow its fleet to 15 aircraft by 2030. Additional service carriers operating in Vietnam include Hai Au Aviation, Vietstar Airlines, Vietnam Helicopter, and Sun Air.

Airport Development

Vietnam’s airport infrastructure is undergoing rapid transformation, supported by large-scale investments and a national development strategy. Under Decision No. 648/QĐ-TTg (June 2023), the Vietnamese Government approved the National Airport Development Master Plan (2021–2030), with a Vision to 2050, aiming to expand connectivity and capacity nationwide.
By 2030, Vietnam aims to expand its network to 30 airports, up from the current 22, ensuring that over 95% of the population has access to an airport within 100 kilometers. The total designed capacity is expected to reach 294.5 million passengers annually, with an estimated investment requirement of $18 billion. Looking ahead to 2050, the country targets 33 airports capable of handling 533.5 million passengers per year, requiring an estimated $25.5 billion in total investment.
Airports Corporation of Vietnam (ACV), the country’s largest airport operator, currently manages a nationwide network of 21 airports. ACV is leading the development of the $5.5 billion Long Thanh International Airport Phase 1, alongside expansion and upgrades of several major airports across the country.

To support the airport development goals, the Vietnamese Government is promoting private sector participation through public-private partnership (PPP) models. Key ongoing or proposed projects include:

  • Phu Quoc International Airport Expansion: Proposed by Sun Group, the Phu Quoc International Airport Expansion project is designed as a Class 4E airport with a projected capacity of 18-20 million passengers annually, expected to be completed by 2027.
  • Quang Tri Airport: The Quang Tri Airport project is under development by T&T Traffic Infrastructure Investment and Development Company and Cienco 4 Group JSC. A Class 4C airport with Tier 2 military functionality, this airport project is targeting an initial capacity of two million passengers per year by 2030, with plans to expand to five million by 2050.
  • Gia Binh International Airport: Recently approved, this dual-use (civil-military) Class 4E airport, to be located in Bac Ninh province, is expected to handle 30 million passengers by 2030, with plans to expand to 50 million by 2050.

Air Traffic Management

Vietnam Air Traffic Management (VATM), under the Ministry of Construction, provides air navigation services for civil and military aircraft operating in the Flight Information Regions (FIRs) of Vietnam (including FIR Hanoi and Ho Chi Minh) and at airports nationwide, covering 36 international and 24 domestic routes, and seven international and 14 domestic airports. Among those are some of the county’s busiest airports–Tan Son Nhat and Noi Bai, in Ho Chi Minh City and Hanoi, respectively.
In 2024, VATM provided air navigation services for 867,129 flights, an increase of nearly 15% from the previous year, while maintaining service quality exceeding 91% as assessed by the International Air Transport Association (IATA). 
By 2030, VATM aims to provide air navigation services to 2.5 million flights. It also aims to become one of the leading Air Navigation Service Providers in the South-East Asia region in both criteria of air traffic control capabilities and services quality, with a reliable safety management system and advanced air traffic management solutions. The total income of VATM staff and its contribution to the State budget have increased with the growth rates of the next year higher than those of the previous years

The following list includes areas for which VATM is seeking partners or support:

  • Air Traffic Services (ATS): Assessing airspace and improving airport capacity.
  • Communication, Navigation, and Surveillance (CNS): Organizing and managing technical systems (operation, maintenance, repairs, spare parts’ quota), improving technical standards of Air Navigation Services (ANS) system and specialized equipment, such as standards of radar and calibration; technologies and platforms to improve air transport at air traffic control (ATC) units.
  • Aviation Security: Planning and implementing airspace security assessment and management programs (especially content related to coordination with military agencies).
  • Aviation Safety: Applying a safety management system for Air Navigation Service Providers (ANSPs).
  • Aviation Search and Rescue: Organizational model and technical equipment.

The following are VATM’s ongoing modernization projects and investments:

  • CNS/ATM Modernization Program (2020–2030): A comprehensive $480 million investment to upgrade communications, navigation, surveillance, and air traffic management infrastructure. 
  • Under construction: ATC Facilities at Long Thanh International Airport, Investment in the new Ho Chi Minh Area Control Center (ACC/HCM), replacement of radar systems, and some other investment projects.

Maintenance, Repair, and Overhaul (MRO) Services

The Vietnam MRO market is expected to grow at a compound annual growth rate (CAGR) of 10.6% over the next decade, 2021–2030, in line with the 9.6% annual expansion of its fleet. By 2030, CAAV estimates Vietnam’s overall MRO demand will total $7.4 billion. As of late 2024, the Vietnam MRO market is valued at approximately $155 million, while the total MRO demand in Vietnam is $654 million.

MRO capabilities in Vietnam are predominantly provided by five main players:

  • Vietnam Airlines Engineering Company (VAECO)
    Subsidiary of Vietnam Airlines, offering comprehensive line and base maintenance. VAECO, operates six modern hangars across Hanoi, Da Nang, and Ho Chi Minh City.
  • Vietstar Aero Engineering Company (VSAE)
    Full-service integrated MRO provider and subsidiary of Vietstar Airlines
  • Southern Airport Aircraft Maintenance Services (SAMM)
    Line maintenance provider formed as a JV between ACV (Airports Corporation of Vietnam) and SIA Engineering, primarily serving Tan Son Nhat and other airports
  • Aerospace Engineering Service JSC (AESC)
    Specialist in component maintenance, the only Vietnamese private company certified by both FAA (Part 145) and EASA for component overhaul
     

Airline-Affiliated Part M Maintenance Teams

Pacific Airlines, Vietjet, and Bamboo Airways manage their own Part M continuing airworthiness programs, although they outsource heavy maintenance to external MROs. Vietnam MRO’s capability is still in the initial stage, only accounting for up to 23% of market demand, while 77% of services are being outsourced. Given the extensive construction of new airports, the rapid growth rate of the aviation market in the next 10 years, and the high rate of MRO services being outsourced, the MRO market in Vietnam is certainly one of the most promising markets in the region and in the world. 

In July 2022, the Vietnam Ministry of Transport approved an investment of more than $118 million to develop four MRO facilities at Long Thanh International Airport. The facility will meet the requirements of European and American standards, providing service to licensed planes, such as the Boeing B777/B787, Airbus A330/A350, narrow-body A320/A321, and Boeing 737.

Vietnam’s Master Plan on National Airport Development prioritizes building aircraft MRO centers at key airports. The plan specifically highlights establishing these centers at major international airports with robust infrastructure, including Noi Bai, Da Nang, Tan Son Nhat, Chu Lai, Cam Ranh, Can Tho, and Long Thanh. Notably, Chu Lai Airport is slated to become a major regional MRO hub.

CAAV encourages domestic companies to cooperate with foreign investors to enhance the country’s MRO capacity. However, there are still challenges for MRO development in Vietnam due to a shortage of a skilled workforce, hangars, material distribution hubs, and a weak supporting industry, high costs of specialized equipment, stringent safety and maintenance standards for MRO, as well as a lack of preferential policy from the Vietnamese government.

Opportunities

The U.S. companies are highly respected in Vietnam as the world’s leading equipment manufacturers and service providers in the aviation sector and are known for their advanced technologies, quality, and professionalism. U.S. companies will find significant opportunities in the following areas:

  • Aircraft sales and aircraft leasing
  • Aircraft components manufacturing 
  • Airline operations and management: Sustainable fuel, fuel efficiency, AI application in operation and management
  • Architectural, engineering, and construction management and consultancy services with a focus on green and sustainability 
  • Electric airport ground support equipment and terminal equipment: passenger boarding bridge, baggage handling systems
  • Safety & security compliance: airport firefighting and rescue, smart security scanning, foreign object detection, ground-based augmentation system (GBAS), facial recognition camera with biometric technology, Emergency management and response 
  • Digital infrastructure and passenger experience: 5G connectivity and IoT-enabled terminals, Mobile apps for real-time flight information, indoor navigation, personalized alerts, smart parking systems and automated toll collection, Smart Airport Management Systems, trolley monitoring and tracking system, and GPS vehicle tracking
  • Aviation Logistics & Air cargo
  • MRO: including Big Data, Blockchain, IoT, Robotic Process Automation solutions
  • Training services for aircraft pilots, specialized aviation administrators, engineers, and technical staff.

Challenges

  • Foreign government financing assistance is a significant challenge for U.S. firms bidding on infrastructure projects funded by other government financing assistance programs like Japanese official development assistance.
  • Many of Vietnam’s airports were former U.S. airbases; however, U.S. companies are late in returning to the market compared to European Union, Japanese, and Korean competitors with limited local presence or partnerships.
  • Vietnam’s public tender process poses challenges for foreign entrants due to its prolonged and unpredictable timelines, complex registration requirements on the national bidding platform, a price-driven award system favoring the lowest bid rather than value-driven proposal, and limited transparency in both tender disclosures and evaluation criteria
  • Project timelines often exceed initial projections.

Resources

  • Civil Aviation Administration of Vietnam (CAAV)
  • Ministry of Construction
  • Airport Corporation of Vietnam (ACV)
  • Aviation News
  • Bamboo Airways
  • Pacific Airlines
  • VietJet Air
  • Vietnam Air Traffic Management Corporation (VATM)  
  • Vietnam Airlines
  • Vietnam Airlines Engineering Company (VAECO)
  • Vietnam Association on Aviation Science and Technology (VAAST) 
  • Vietnam Aviation Academy (VAA)
  • Vietravel Airlines

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