Up-coming seminar: “Vietnam-US Direct Route: Ready to Take Off”

Up-coming seminar: “Vietnam-US Direct Route: Ready for Taking Off”

According to the report of the International Air Transport Association (IATA), the number of passengers traveling by plane worldwide in the next 20 years is expected to reach 7.2 billion, almost doubling against the 3.8 billion passengers in 2016. In particular, Vietnam is one of the five markets with the fastest growing number of visitors beside China, the US, India, and Indonesia.

Regarding the domestic market, five Vietnamese airlines are exploiting 50 domestic routes connecting Hanoi, Danang, and Ho Chi Minh City with 18 local airports. There are currently 68 foreign airlines from 25 countries/regions and five domestic airlines operating in Vietnam, exploiting nearly 130 international routes to 29 countries/territories.

Flight attendants

Vietnamese airlines are stepping up the exploitation of the international aviation industry, in which the US is one of the key markets identified in the project: "Direct flights between Vietnam and other countries together with key areas to encourage development investment promoting exchanges and international integration" approved by the prime minister in Decision No.2119/QD-TTg on December 28, 2017.

The US is also identified as a key tourism market in the project: "Strengthening aviation connectivity with source markets" signed by Deputy Prime Minister Trinh Dinh Dung in Decision No.105/QD-TTg on January 22, 2019.

The crew of Bamboo Airways

The market capacity between Vietnam and the US in 2017 rose to over 700,000 passengers with an average growth rate of more than 8 per cent per year in 2010-2017. According to the US Embassy in Ho Chi Minh City, in 2018, the number of Vietnamese visitors travelling to this country achieved an impressive growth of 107,000 people.

In February 2019, Vietnam was officially granted the Category 1 (CAT1) certification by the US Federal Aviation Administration. CAT 1 has paved the way for Vietnamese airlines to establish direct flight to the US and facilitated joint co-operation between airlines and the people of the two countries.

The time for Vietnamese carriers to open direct flights to the US has arrived. However, in addition to opportunities and potentials, the exploitation of the Vietnam-US direct route also poses significant challenges in terms of legal, economic, technical, and commercial issues.