Runway clear for Thien Tan project

illustration photo

According to Thien Tan’s chairman Huynh Kim Lap, the local firm is working with the US’ JK&D International on a feasibility study for the project at an estimated cost of $1 billion after receiving the green-light from the Ministry of Transport (MoT) in early 2016.

JK&D International has gained a solid reputation over the past 30 years for providing quality expert and technical solutions on infrastructure projects, and its participation would help the airport project run smoothly.

Chu Lai international airport is strategically located between the central provinces of Quang Nam and Quang Ngai, two growing industrial foci in central Vietnam. Initially, the airport was used as a military base. After many years of disuse, the airport re-opened in 2005 with its first commercial flight from Ho Chi Minh City.

In 2015, the airport received 154,550 passengers, up 284.5 per cent compared to 2014. Major airlines Vietnam Airlines, Vietjet, and Jetstar Pacific all use the airport.

Under the government’s approved plan, the airport would serve not only an increased number of passengers, but will also become a regional cargo hub supporting the recent industrial development of the central region. Chu Lai expansion aims to reach four million passengers and five million tonnes of cargo by 2025.

Last month, Sun Group, Vietnam’s real estate giant, sought the government’s permission to build a domestic airport in the northern highlands province of Lao Cai at an estimated cost of VND1.3 trillion ($57.46 million). The company has reportedly already secured approval for another airport near Halong Bay.

At present, Vietnam has 21 airports operating nationwide. Five more airports are planned to become operational by 2020, raising the total number to 26. All of Vietnam’s airports are currently running both civil and military flights under the management of the state.

With the country’s recent rapid economic growth, Vietnam’s existing airports are facing an overcrowding problem. In the past few years, the government has upgraded a handful of airports to expand their throughput capacity, including Noi Bai, Tan Son Nhat and Danang. In addition, the government is also calling for foreign investment in airport projects, such as Long Thanh in the southern province of Dong Nai, and Van Don in the northern province of Quang Ninh.

US-based ADC-HAS Airports in 2011 proposed to invest in seven airports in Vietnam’s central region under a public-private partnership. Singapore’s Changi Airports International and the US’ Airis Holdings also expressed their desire to invest in airport projects in Vietnam.