VIETNAM: IATA highlights Vietnam’s obstacles to growth

While noting that the future for Vietnamese aviation is bright, the International Air Transport Association (IATA) has identified three areas of focus for the Vietnamese aviation industry, including: Global standard technology for air traffic management; more cost-efficient airports and air navigation services; and greater efficiency by taking advantage of IATA’s Simplifying the Business programme. By […]


While noting that the future for Vietnamese aviation is bright, the International Air Transport Association (IATA) has identified three areas of focus for the Vietnamese aviation industry, including: Global standard technology for air traffic management; more cost-efficient airports and air navigation services; and greater efficiency by taking advantage of IATA’s Simplifying the Business programme. By 2014, Vietnam is projected to be the worlds third fastest growing market for international passengers and freight, and the second fastest for domestic passengers. “But it is a future that cannot be taken for granted,” said Giovanni Bisignani, IATA’s director general and CEO. “Vietnamese aviation must be built and supported by sound policies that take into account that this is a dynamic industry where change is the only constant.” This included adopting global standards set in the International Civil Aviation Organizations (ICAO) roadmap for air traffic management including the implementation of ADS-B and Performance Based Navigation (PBN) in preparation for the expected enormous traffic expansion in coming years. Bisignani also noted that additional efforts are also needed to reduce the cost burden on current users of Vietnam’s airports and airspace. “As Vietnam’s airports expand to meet the growing demand for air travel, it is important to have cost efficient infrastructure following ICAOs charging principles of consultation with users, transparency, cost recovery and non discrimination in order to maximise the full potential that aviation brings,” said Bisignani. The IATA chief also made a pitch for IATA’s ‘Simplifying the Business’projects in order to improving efficiency which he said will be critical in maintaining Vietnam’s competitiveness. In particular he emphasised e-freight, noting that Vietnam Airlines and freight forwarders are looking to implement e-freight in Vietnam but cannot do so until the government ratifies the Montreal Convention.