Private investment is required to finance planned airport projects in Vietnam as government funding falls short. According to the Ministry of Transport (MoT), total investment in airport infrastructure in the 2011- 2022 period was VND95 trillion. Out of this, 12.5 per cent was met through the State budget and 87.5 per cent was from other sources. However, total investments during the period were 40 per cent lower than actual capital requirements.
Due to lack of sufficient funding, capacity has been stretched at most of Vietnam’s airports. During 2019, Tan Son Nhat Airport recorded 41 million passenger footfall compared to its 28 million passenger capacity.
For the 2021-2030 period, total capital required to develop airport infrastructure is expected to be around VND403 trillion. Out of this, the Airports Corporation of Vietnam (ACV) will contribute VND265 trillion VND while the MoT has earmarked VND9.8 trillion. More than VND128 trillion will be raised from the private sector.
