Operator of Southeast Asia’s leading low-cost airline eyes investment in Vietnam’s Quang Tri

The Office of the provincial People’s Committee said on Thursday that Quang Tri vice-chairman Le Duc Tien had met with representatives from Malaysia-based Capital A and Vietnam’s T&T Group to discuss potential investment opportunities in the province.

A consortium of the two firms desired to conduct surveys and research to propose the development of an integrated aviation industrial and logistics complex adjacent to the under-construction Quang Tri Airport, located in Gio Linh and Cua Viet Communes.

The proposed project would feature a wide range of facilities such as an air transport and logistics center; aircraft maintenance, repair, and assembly zones; research, training, and testing centers; an e-commerce hub; high-tech industrial zones; multifunctional urban areas; and mixed-use service facilities.

Vice-chairman Tien welcomed the proposal and reaffirmed the province’s commitment to supporting the investors throughout the project’s survey and implementation phases.

He emphasized that Quang Tri Province is ready to provide investment incentives, assist with administrative procedures, and update provincial planning frameworks, including adjustments to the 2021-30 provincial master plan and related sectoral plans, with a long-term vision to 2050, to accommodate the project.

To facilitate the establishment of the aviation and logistics hub, Quang Tri will offer various attractive incentives, including four years of corporate income tax exemption, followed by a 50-percent tax reduction for the next nine years, a preferential 10-percent tax rate for 15 years for aviation and logistics sectors, and exemption from import duties on machinery and equipment used for fixed assets.

Besides, the investors will benefit from land lease exemption for 15-20 years, or potentially the entire project duration, support for clean land access, and market connectivity.

The leader of the province also highlighted Quang Tri’s strategic geographic position at the heart of the Indochina region, calling it an ideal location for Capital A to establish a logistics-aviation ecosystem connecting Vietnam with Malaysia, Thailand, Laos, and beyond.

Capital A currently operates the largest low-cost airline network in Southeast Asia through its AirAsia affiliates in Malaysia, Thailand, Indonesia, the Philippines, and Cambodia.

The group manages a fleet of 207 aircraft, serving over 63 million passengers in 2024.

Apart from aviation, Capital A is investing in logistics, digital technology, e-commerce, and financial services.