Rise in Tourism Industries Anticipated to Drive Vietnam Aviation Industry: Ken Research
by Rati Ram Business DeveloperVietnam aviation industry is a business sector
dedicated to manufacturing & operating all types of aircraft. The industry
includes air transport service providers of passenger & cargo. The services
of this industry are used by individuals and governments for the purpose of
business (international, domestic, and regional). The key advantages are
included quick service, natural route, no infrastructure investments, high
speed, useful for agriculture, easy access, minimum cost, national defense and
free from physical barrier. Apart from this, few of the disadvantages are
included huge investments, more risks and high cost.
Vietnam’s aviation market is highly valued with a
growth rate of 10% per annum. This growth percentage is twice as high as that
of the region and the world, not only for transporting of passenger but also
for logistics. The International Air Transport Association (IATA) is a trade
association that assessed that country is the fifth fastest growing aviation
market in the world. The size of the domestic Vietnamese aviation market has
been expanded due to rapid expansion of the middle-class and strong travel
&tourism sector.
According to study, “Vietnam
Aviation Comprehensive Report Q4/2019” the key companies operating in
the Vietnam aviation industry are Airports Corporation of Vietnam-JSC, Saigon
Cargo Service Corporation (SCSC), VietJet Aviation Joint Stock Company,
Southern Airports Services JSC, Airports corporation of Vietnam, Cam Ranh
International Airport Services Joint Stock Company, NoiBai cargo terminal
services JSC, Cam Ranh International Airport Services Joint Stock Company, Saigon
ground services, Danang Airports Services Joint Stock Company, NoiBai Airport
Services Joint Stock Company, NoiBai Catering Services Joint Stock Company. The
aviation companies are enjoying the benefits of enhanced demand and decreased
operation costs which in return will increase the profit margins.
Based on type, Vietnam aviation industry is
segmented into military aircraft, commercial aircraft and general aviation.
Military aircraft segment is further sub-segmented into combat aircraft and
non-combat aircraft. Commercial aircraft is further sub-segmented into freight
and passengers. Commercial aircraft segment is estimated to witness higher
growth rate owing to rise in demand for new aircraft to cater to the increasing
air travel during the forecast period. Additionally, general aviation is
further sub-segmented into turboprop, helicopter, business jet and piston fixed
wing.
The Vietnam aviation industry is driven by increase
in the demand from emerging economies, followed by growth in improvement in
technological advancements (new airplanes with improved economics and
capabilities), lower air fares, high penetration of low-cost carriers, rise in tourism
industries, growth in living standards, increase in demand in long-haul
international services and growth in demand for new low-cost carriers
deregulation. However, sustainability and safety issues associated with air
transport may impact the market. Moreover, decrease in fuel prices and rise in
the individual net income of middle class are key opportunities for market.
Furthermore, volatility in fuel prices combined with maximum tax on aviation
turbine fuel is a major challenge for market.
Vietnam country is top in Southeast Asia region in
economic growth. In upcoming years, it is estimated that the Vietnam aviation
industry market will be reached at rapid pace owing to expansion of
international routes by domestic carriers, procurement of new generation
commercial aircraft and growth in replacement of aging commercial aircraft
during the forecast period.
For More Information,
refer to below link:-
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Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
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Created on Feb 24th 2020 03:50. Viewed 402 times.