Airports Corporation of Vietnam

Airports Corporation of Vietnam
Name	Airports Corporation of Vietnam
Type	State-owned enterprise
Industry	Airport operation and management
Founded	31 December 2015
Hq location	Hanoi, Vietnam
Key people	Lai Xuan Thanh (Chairman)
Services	Airport services, air traffic management, ground services
Owner	Government of Vietnam
Num employees	~10,000

Airports Corporation of Vietnam is the primary state-owned enterprise responsible for operating and managing the majority of civil aviation infrastructure across Vietnam. Established through the consolidation of several regional airport authorities, it plays a critical role in supporting the nation's rapidly growing aviation sector and tourism industry. The corporation is directly overseen by the Ministry of Transport and holds a dominant position in the country's airport network.

History

The corporation's origins trace back to the decentralization of airport management in the early 1990s, which led to the creation of three regional airport companies: the Northern Airports Authority, Central Airports Authority, and Southern Airports Authority. To improve efficiency and centralize strategic planning, the Government of Vietnam merged these entities to form a single corporation, which was officially launched on December 31, 2015. This consolidation was a key part of broader reforms in the transportation sector and aligned with the Civil Aviation Administration of Vietnam's master plans for infrastructure development. Since its inception, it has been instrumental in modernizing key gateways like Noi Bai International Airport and Tan Son Nhat International Airport to handle increasing passenger traffic from carriers such as Vietnam Airlines and Bamboo Airways.

Organization and structure

The corporation operates as a parent company with a head office in Hanoi and manages a network of subsidiary units responsible for individual airports and specialized services. Its organizational chart includes divisions for investment, construction, operations, and commercial services, reporting to a board of directors and members' council. Key subsidiaries and affiliates often focus on specific areas like cargo logistics, aircraft maintenance, and non-aeronautical revenue development at its facilities. The leadership structure is appointed by the Prime Minister of Vietnam and overseen by the Ministry of Transport, ensuring alignment with national transport policy.

Operations and airports managed

The corporation manages 22 airports across Vietnam, which collectively handle over 95% of the country's air passenger traffic. Its portfolio includes all major international gateways, such as Noi Bai International Airport in Hanoi, Tan Son Nhat International Airport in Ho Chi Minh City, and Da Nang International Airport. Other significant airports under its operation are Cam Ranh International Airport serving Nha Trang, Phu Quoc International Airport, and Cat Bi International Airport in Haiphong. Its services encompass full airport operations, including runway and terminal management, ground handling, air traffic control services, and security operations, often in coordination with the Vietnam Air Traffic Management Corporation.

Financial performance

As a profitable state-owned enterprise, its revenue is primarily generated from aeronautical services like landing fees and passenger service charges, as well as non-aeronautical activities including retail concessions, duty-free shops, and real estate leasing. Financial results are reported annually to the Ministry of Finance, with significant portions of profit reinvested into infrastructure upgrades and new projects. The corporation's initial public offering has been periodically discussed as part of the government's equitization program for state assets, though it remains fully state-owned. Its credit ratings and bond issuances are closely monitored by institutions like Moody's and Fitch Ratings.

Major projects and development

The corporation is executing a multi-billion dollar national airport infrastructure plan, with flagship projects including the massive Long Thanh International Airport in Dong Nai province, designed to eventually replace Tan Son Nhat International Airport as the southern hub. Other major developments involve the expansion of Noi Bai International Airport's Terminal 2 and a new passenger terminal at Tan Son Nhat International Airport. It is also upgrading regional airports like Chu Lai Airport and Lien Khuong Airport to international standards, often with financing from the Japan International Cooperation Agency and Asian Development Bank. These projects aim to alleviate congestion and support the growth strategies of Vietnam Airlines and Vietjet Air.

Corporate governance and leadership

Corporate governance follows the model prescribed by the Law on Enterprises for state-owned companies in Vietnam, with a board of directors and a board of supervisors appointed by state authorities. The current chairman of the board of directors is Lai Xuan Thanh, a former head of the Civil Aviation Administration of Vietnam. Key decisions on investment, strategy, and senior appointments require approval from the Prime Minister of Vietnam and the Ministry of Transport. The leadership team is tasked with implementing the directives of the Communist Party of Vietnam regarding national infrastructure development and economic growth.

Category:State-owned companies of Vietnam Category:Airport operators in Asia Category:Companies based in Hanoi Category:Aviation in Vietnam