Vietnam's Ho Chi Minh City People’s Committee has submitted to the Ministry of Construction a request to keep Tan Son Nhat Airport operational even after the new Long Thanh International Airport, 43km east, becomes operational (Vietnam Business News, 03-Mar-2011). The new airport is expected to commence construction in 2018. Phase one will complete in 2020 and phase two by 2035. In the first phase (2020-2030), the airport aims to serve 44.5 million passengers p/a and 1.2 million tonnes of cargo. The USD6 billion project invested by the Southern Airports Corp was approved in 2005.
Government proposes two airports to continue in Ho Chi Minh City
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However, the airline faces challenges in 2017 as the group accelerates expansion in a highly competitive international marketplace. VietJet, which turned five years old on 25-Dec-2016, has focused mainly on domestic services in Vietnam but is banking on its JV in Thailand and a much larger international operation to drive its next phase of growth.
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However Vietnam Airlines plans to grow at a much slower rate in 2017, and intensifying competition will likely impact profitability. Opportunities for further domestic expansion are becoming more limited as the market becomes more saturated, while international expansion poses more challenges and risks.