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Saturday, 2/8/2025 | 16:54 GMT+7

Vietnam poised to become air cargo hub in five years

With rapidly developing infrastructure and strong demand, experts predict Vietnam could become a major air cargo hub within the next five years.

This projection was made by Ben Anh, CEO of ITL Corporation, during a seminar at the 3rd Vietnam International Logistics Exhibition (VILOG 2025) on August 1st.

"Vietnam has the potential to become a major air cargo hub within five years, possibly even within three," Anh predicted. ITL, a provider of integrated logistics solutions, represents over 22 airlines and handles cargo for more than 300 flights weekly.

Last month, at the tlacSEA Connect supply chain forum, experts noted Vietnam's emergence as a regional logistics center. Specifically, they highlighted the potential for air cargo to transition from an origin and destination point to a major hub.

Ben Anh, CEO of ITL Corporation, at the August 1st event. Photo: Organizers

Ben Anh, CEO of ITL Corporation, at the August 1st event. Photo: Organizers

According to Anh, two key drivers are accelerating this potential: infrastructure development and rising cargo demand. During a meeting on July 31st, Prime Minister Pham Minh Chinh announced that the Long Thanh International Airport project is nearing completion this year and is set to officially operate in 2026.

In northern Vietnam, the Ministry of Construction recently approved an adjusted master plan for Gia Binh International Airport, aiming for a cargo capacity of 1.6 million tons annually by 2030, increasing to 2.5 million tons by 2050.

"Both Long Thanh and Gia Binh will have adjacent logistics parks. The government is actively developing infrastructure, including road connections between airports, industrial zones, and seaports," Anh explained.

The second driver is Vietnam's role as a major manufacturing hub, which fuels high cargo transportation demand. Vietnam's air cargo volume has reached 1.2 million tons annually, surpassing Malaysia (900,000 tons) and the Philippines (600,000 tons), and is projected to surpass Thailand within two years thanks to double-digit growth.

Data from the Civil Aviation Authority of Vietnam (CAAV) shows that air cargo transportation in the first six months of this year reached 695,700 tons, a 14.6% increase compared to the same period in 2024. International cargo alone reached 580,000 tons, a 17.7% increase.

Gia Binh Airport has strong prospects of becoming the first hub, according to Anh. This is due to higher and faster-growing air cargo demand in the northern region, accounting for 65% compared to the south. The north is home to many electronics and high-tech factories, producing goods with significant air transport needs.

However, infrastructure and demand alone are not enough to establish an air cargo hub. Airports also require strong connectivity, including an extensive airline network and serving as a base for multiple carriers.

Furthermore, successful air logistics hubs need open skies policies, streamlined transit procedures, efficient customs processes, and a free trade environment to facilitate smooth international cargo flow.

Technology also plays a crucial role, enabling seamless connections between various stakeholders in the logistics chain, such as airlines, warehouse operators, customs authorities, and transporters. Efficient ground handling and timely processing are essential, especially for high-value and time-sensitive goods like e-commerce products, electronic components, and medical supplies.

Incheon (South Korea) is a prime example of a successful hub, supported by a high-tech manufacturing base and the Incheon Free Economic Zone (IFEZ), which facilitates logistics, production, and research through public-private partnerships. It's also the base for Korean Air, one of the world's top three air cargo carriers.

Similarly, Hong Kong's success stems from open policies, modern infrastructure, and efficient cargo handling. The special administrative region benefits from its proximity to China's Greater Bay Area, a major global manufacturing and consumption center.

In Southeast Asia, Singapore, despite lacking a large manufacturing base, thrives as an aviation hub thanks to its open skies policy, excellent connectivity, and streamlined customs and transit procedures. Its "Cargo Village" ecosystem and robust digital platforms like the Changi Air Cargo Community System (CACC) connect all stakeholders seamlessly.

In its "Digital Transformation and Sustainable Development of Vietnam's Civil Aviation Industry 2024-2030" plan, CAAV aims to elevate the industry's international competitiveness to a leading position within ASEAN, with three passenger and cargo hubs on par with regional standards.

According to experts, Vietnam benefits from being a latecomer, allowing it to learn from successful models and readily implement green and digital solutions. Anh believes two areas needing improvement are more open and streamlined customs and transit policies for import and export goods. "Additionally, Vietnam lacks a dedicated air cargo carrier. This is a major bottleneck," he noted.

Vien Thong

By VnExpress: https://vnexpress.net/viet-nam-co-the-thanh-trung-tam-van-tai-hang-khong-trong-5-nam-4921928.html
Tags: air cargo logistics air transport hub

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