Yet another local investor shows interest in buying Vietnam airport

A multifaceted conglomerate based in Hanoi has proposed buying Phu Quoc International Airport, located on an island off the southern Vietnamese coast, less than a month after the Minister of Transport urged the transfer of the terminal.

Hanoi T&T, which operates in industry, finance, and real estate, wants to either purchase all of the assets of the airport on Phu Quoc Island, which is administered by the southern province of Kien Giang, or acquire the right to operate its services.

The company has also said it is committed to upgrading the airport, which was opened to passengers in December 2012, and will not transfer the operation right to other parties within five years.

On February 25, Minister of Transport Dinh La Thang requested that the Vietnamese aviation sector focus on pilot programs to sell 100 percent of the government’s investment in Phu Quoc International Airport and part of Da Nang International Airport to budget airlines.

The right transfers will generate money to invest in building new international airports, he said at a meeting in the capital city.

Hanoi T&T, chaired by mogul Do Quang Hien, is thus the first investor to answer the transport minister’s call.

The Phu Quoc airport was developed by the Airports Corporation of Vietnam at a total investment of VND3 trillion (US$139.81 million).

The airport is capable of serving 2.6 million passengers a year. It has eight aprons capable of handling A320-A321 aircraft, and is able to receive wide-body jets such as the Boeing 747- 400.

The presence of an international airport on Phu Quoc Island has greatly contributed to the growth of its tourist industry, as the island is known for its beautiful beaches and delicious seafood.

The stake selling at Phu Quoc and Da Nang airports will be done as a pilot program before the Ministry of Transport moves on to sell the government’s investment in Noi Bai International Airport.

Two local carriers, including flag carrier Vietnam Airlines and no-frills VietJet Air, have shown interest in buying the Hanoi terminal.

In early February, privately-owned carrier VietJet Air submitted a document to Minister Thang, asking to be transferred the right to exploit Terminal T1, one of the two terminals at the airport, for 20 years.

The proposal of Vietnam Airlines, however, is quite different, in the manner that it wants to directly purchase the terminal instead of acquiring the right to operate the facility for a limited term.

Both propositions are now under consideration by the transport ministry, whereas Lai Xuan Thanh, head of the Civil Aviation Authority of Vietnam, admitted that selling a terminal, or the right to operate it, to an airline is “a new matter in the Southeast Asian country.”

The aviation authority is studying the issue and hopes to be able to introduce a “set of standards required for investors who are interested in the country’s airports in a couple of weeks,” Thanh told Tuoi Tre (Youth) newspaper last week.

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