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Vietnam Aviation Outlook: GFC hurts export-oriented economy, but full impact cushioned by government

Vietnam’s aviation market is an extremely dynamic and high-potential one. But like most emerging markets, infrastructure issues and the regulatory environment (including rising conservative forces during the economic downturn) are providing some challenges to development. The country’s airlines and airports are planning rapid expansion and development over the next decade or so, with a major expansion opportunity the impending ASEAN Open Skies Agreement. The recent announcement of the entry of an AirAsia JV into the country, as well as Qantas Group’s investment in Vietnam via a Jetstar cross-border JV, means Vietnam aviation is poised for dynamic growth. Indeed, Vietnam could be one of Asia's fastest growing aviation markets over the next few years and the ground lost in the downturn could be quickly made up.

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