- Total foreign tourist arrivals: 480,886, +37% year-on-year;
Visitor arrivals to Vietnam up 37% in May-2011
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China is not the only game in town: Asia’s other aviation growth markets
China captures headlines and imaginations in terms of market growth potential, and rightly so - it will generate 100 million tourists annually by the end of this decade. But there are other markets in Southeast Asia that show high potential and remarkable promise for future growth opportunities.
The large aircraft order book hovering over the region has attracted significant attention from the global industry in recent years. Much of this is directed at short haul markets, as new LCCs expand and regional commerce develops. While the rate of growth has been slowing, the order book suggests at some point the rate of LCC growth in Southeast Asia will re-accelerate. Southeast Asian LCCs currently have over 1,100 orders, including almost 90 widebody aircraft. LCCs currently account for about 75% of orders among Southeast Asian airlines but only about 33% of the active fleet. Even when factoring in replacements the size of the LCC fleet should more than double over the next decade.
Three Southeast Asian markets recorded double-digit passenger growth in 2015 – Thailand, Vietnam and Cambodia – while another three experienced high single-digit growth – the Philippines, Laos and Myanmar. Indonesia and Malaysia have struggled recently but should see faster growth rates again in the medium to long term. Indonesia, with its 200 million population, is perhaps the quiet medium term performer. Thailand and Vietnam, for now, remain the hottest markets in Southeast Asia. Myanmar is also intriguing, but much smaller.
VietJet Air Part 3: international expansion accelerates as IPO approaches and order book grows
Vietnamese LCC VietJet Air is accelerating international expansion with at least five new routes in 4Q2016. VietJet will end 2016 with at least 14 international routes, compared with only seven at the beginning of 2016.
The Vietnamese LCC turns five years old in Dec-2016 and is approaching a critical juncture as it starts to pursue faster international expansion and prepares for an initial public offering (IPO). VietJet has been very successful in the Vietnamese domestic market, driving rapid growth and quickly capturing a 40% share.
With international expansion come higher risks and more challenges. VietJet is betting it can succeed internationally after placing orders for another 120 aircraft in recent months, raising its order book to 200.