Hanoi Times - Within the first decade after the 1975 end of the war, Vietnam’s economy faced stagnation, with inflation hitting 700 percent in 1986 and a serious shortage of funds for investment. In that year, the Communist Party in its Sixth Congress approved a broad reform package, "Doi Moi" (or Renovation), that introduced market reforms and dramatically improved Vietnam’s business climate. The country started shifting its central-planning economy based on the Soviet style toward a market-oriented mechanism.The country issued the law on foreign investment in Vietnam in 1987, which reaffirmed the market opening policy that provided a higher legal framework to help the country attract foreign investment.Over the past two decades ending in 2007, Vietnam has attracted $98 billion of foreign investment, of which operational projects totaled $83 billion. Foreign investment projects had yet to pick during the first three years of 1988-1990 since the law came into … [Read more...]
Vietnam Airlines to sell 5 old aircraft as part of service upgrade plan
Vietnam Airlines has said it will sell five aircraft as part of a major upgrade plan that aims to turn the national carrier into a four-star airline. The management board of Vietnam Airlines has proposed selling three ATR 72s and two Boeing 777-200ERs in its plan to be submitted in a stakeholder meeting this March 13, Nguoi Lao Dong (Laborer) newspaper reported. While the three ATRs are fully depreciated, the two Boeings made in 2003 will have four more years to go. However, Vietnam Airlines still wants to sell them all as it said they cannot ensure the quality of its services amid the current fierce competition. The board said it is aiming to upgrade its services to the “four-star” level. According to Skytrax, an international rating agency that ranks airlines on a scale from one to five stars, Vietnam Airlines is currently a three-star airline. The Boeing 777-200ERs are currently the best aircraft in Vietnam Airlines’ fleet. They are used for flights to … [Read more...]
Vietnam Airlines prepares to enter Skyteam
Vietnam Airlines integration into Skyteam – dominated by Air France-KLM, Delta Air Lines, and Korean Air - will reinforce the alliance’s position in southeast Asia. The official inception of Vietnam’s national carrier will happen this coming June. It has been a long process with Vietnam Airlines mulling out the option of entering an alliance as far as 2000 with negotiations starting seriously around 2006/2007. “We are ready as we feel now ‘equal’ with our future partners in terms of product, network, and mutual benefits. That was not necessarily the case before,” explained Mathieu Ripka, marketing and sales director of Vietnam Airlines in France. Vietnam Airlines is already preparing its entry by boosting its frequencies and services. Skyteam will use both hubs of Hanoi and Ho Chi Minh City to reach most of Asia. “Ho Chi Minh City gives us an excellent positioning to Cambodia, Thailand, Indonesia, Malaysia, or Australia, while Hanoi acts … [Read more...]
Airfares could climb if fee hike approved in Vietnam
Airfares could climb if fee hike approved in Vietnam By Bui Hong Nhung  July 1, 2016 | 06:51 pm GMT+7 Possible increases to airport charges and fees, coupled with a recent request from state-owned carrier Vietnam Airlines asking for airfare caps to be removed, could cost Vietnamese citizens more money. In mid-June, the Airports Corporation of Vietnam (ACV), which manages 21 airports nationwide, sent a development plan to the Ministry of Transport in which it said that airport charges for domestic flights should be raised. Dao Viet Dung, deputy director of ACV, said that airport fees for local flights are 2.5-8 times lower than international flights, while investment expenses for both domestic and international airports do not bear significant differences. The ACV asked the ministry to push up airport fees for regional flights, reducing the gap from a maximum of eight times to just four times. The adjustments would be applied at seven international airports to start … [Read more...]
Low-Cost Airlines in Vietnam Affirm Strong Attractiveness
Low-Cost Airlines in Vietnam Affirm Strong Attractiveness Although all air lines when registered to open their flights in Vietnam are treated fair, no discrimination among those with low price or traditional ones, airlines with low price have been creating huge attraction in Vietnam's market. Expanding air routes Three years ago, Singapore's low-cost airline, Tiger Airways brought a new concept of traveling by air to Vietnam's market when announcing its cheap price of US dollar 15 for a journey from Ho Chi Minh to Singapore along with no-free services and booking through internet without permission to return tickets. Right after that, series of cheap airlines of the region have come to Vietnam to make its market more eventful. AirAsia- the biggest cheap airline in Asia came to Vietnam after Tiger Airway one year, but up to now, it has two branches including Air Asia (Malaysia) and Thai Air Asia (Thailand) working effectively in Vietnam. From Hanoi to Kualalumpur, at first there … [Read more...]
Vietnam Airlines Contriving to Open Direct Flight to the US
Vietnam Airlines Contriving to Open Direct Flight to the US Vietnam Airlines is hurrying up to launch a direct flight to the US under the urgent massage of Vietnamese Prime Minister, said the airline’s general director Nguyen Si Hung. The scheme to launch a direct air route to the US aims to meet the increasing demands to travel of the two countries’ people, Hung said, but did not reveal exact time for the flight’s open. One month ago, the national flag carrier announced it would delay the direct flight to the US until late 2008 because it is not yet ready to land at this strong competitive market. Strict requirements in the US on security management systems and air marshals are also blamed for the Vietnam Airline’s delay. However, visitors from the US to Vietnam are surging, while many US businesses considered Vietnam as Asia’s most attractive destination for their investment. In addition, the 1.5 million overseas Vietnamese living in the US are … [Read more...]
Vietnam Airlines’ to privatise VASCO
Vietnam Airlines’ spokesperson Le Hoang Dung said the national flag carrier was planning to privatise VASCO - Vietnam Air Services Company. The ATR72-500 VASCO was established in 1987. At first, it only provided small aircraft including AN2, AN30 and King Air B200 for some air transport routes as well as aerial photography, geological surveys, emergency medical services and search and rescue missions. Vietnam Airlines recently proposed to partly privatise the company with minimum chartered capital of VND300bn (USD13.5m) and a maximum of 10 aircraft fleet. Vietnam Airlines will retain a 51% controlling stake while 49% will be sold to Techcombank. The proposal was approved by Ministry of Transport on March 7. Vietnam Airlines' capital contribution is covered by ATR72-500 aircraft, spare engines and other assets. Techcombank's contribution would be in cash. "In the near future, the company will continue to exploit the ATR72-500s … [Read more...]
Vietnam Airlines uses Boeing 787-9 Dreamliner on route to Beijing
Vietnam Airlines, the national flag carrier, started using its new generation aircraft Boeing 787-9 Dreamliner for the Hanoi-Beijing (China) route, with the first flight landing in Beijing on April 30. Vietnam Airlines uses Boeing 787-9 Dreamliner on route to Beijing. The move aims to better meet the increasing travel demand while affirming the air carrier’s prestige in the Chinese market. Vietnam Airlines now operates five flights between the two capital cities each week, including three using wide-body Boeing 787-9 Dreamliner on Thursday, Friday and Sunday. Airbus A321 flies on the remaining days. Apart from Beijing, the carrier is providing services to 15 Chinese cities with more than 200 flights per week. On April 1, the airline rolled out its new A350-900 XWB aircraft for the route between Ho Chi Minh City and Shanghai with one flight each day. Addressing the April 30 ceremony, Kieu Anh, head of Vietnam Airlines representative office in China, said the … [Read more...]
Vietnam Airlines makes plans for September IPO
The State-owned flag carrier plans to launch its initial public offering (IPO) in September, stated Deputy Minister of Transport Nguyen Hong Truong during the ministry's Q1 meeting. Vietnam Airlines' IPO will be the first aviation equitisation in the Southeast Asian country that makes the value determination process more challenging.— File Photo HA NOI (Biz Hub) — The State-owned flag carrier plans to launch its initial public offering (IPO) in September, stated Deputy Minister of Transport Nguyen Hong Truong during the ministry's Q1 meeting. The long-haul IPO, which was initially scheduled to take place by the end of the second quarter, is being viewed as urgent, since industry competition is intensifying and private carriers are vying for Vietnam Airlines' passengers. Vietnam Airlines has valued itself on the basis of two methods and submitted the two proposals to the Ministry of Transport and currently awaits approval of Prime Minister Nguyen Tan Dung. On one … [Read more...]
Vietnam Airlines recognised as leading global airline
Vietnam Airlines' president and CEO Duong Tri Thanh and the carrier's cabin crew pose for a photo after the certification granting ceremony. — VNS Photo LONDON (Biz Hub) — The national flag carrier Vietnam Airlines has been certified as a 4-Star Airline by the international air transport rating organisation SKYTRAX. The prestigious certification is deserved recognition for the major recent improvements that Vietnam Airlines has made to the quality of its product and service standards. Vietnam Airlines has always endeavoured to fulfil the commitment to ensure that all of its services are ranked 4-star. "This 4-Star Airline rating is an excellent achievement for Vietnam Airlines and the result of their hard work across a range of product and service areas. Introducing two brand new aircraft types into the fleet in such a short space of time is a difficult task, but the reward for Vietnam Airlines is a fabulous new product in their core long haul market," Edward Plaisted, … [Read more...]