IPP Air Cargo to bolster Vietnamese logistics growth

A few days ago, the Ministry of Transport (MoT) sent a dispatch to the prime minister regarding the licensing of freight air transportation business for privately-held IPP Air Cargo JSC.

In the dispatch, the MoT noted that this body has fully taken into account remarks from relevant management agencies about the proposed licensing for IPP, including remarks from the Ministry of Public Security as well as updated aviation development prospects to finalise the dossier up to all set requirements.

A member of the IPP Air Cargo team. Photo: IPP Group

With the dispatch, the MoT seeks the prime minister's approval to be able to give a licence on freight air transportation business to IPP Air Cargo.

“Until now, the dossier asking for a license on freight aviation transport of IPP Air Cargo still proves compatible to set regulations in relevant governmental decrees,” said Deputy Minister of Transport Le Anh Tuan.

According to the MoT, the birth of IPP Air Cargo aims to provide the customers with specialised and quality freight transport services, facilitating Vietnam’s logistics development and proves commensurate to the overall targets and general strategy on transport services development, contributing to mitigating transportation costs while promoting the flow of goods and services for businesses.

The debut of IPP Air Cargo is expected to underpin 10-15 per cent growth in freight transport by Vietnamese airlines.

The freight air transport output of IPP Air Cargo is anticipated to grow year-on-year with an average of 18-20 per cent annually.

As of July 31, the domestic aviation market hosts five local airlines: the national flag carrier Vietnam Airlines (including Vasco), Vietjet, Bamboo Airways, Pacific Airlines, and Vietravel Airlines, regularly exploiting 69 local routes linking Hanoi, Danang, and Ho Chi Minh City with 19 local airports.

In the first eight months of this year, freight transportation output in local routes reached 788,800 tonnes, nearly equal to the level in the same period in 2021 and 2019.

The freight transportation output in international routes reached 699,400 tonnes, slightly up 0.3 per cent compared to 2021’s similar period and showing a 6.5 per cent jump compared to 2019’s same period.

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