Experts raise concern on private monopoly at Vietnam airports

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Several experts have expressed concerns about the emergence of a possible monopoly when Vietnam’s airports are opened to private investment, and suggest measures to prevent the problem.


Noi Bai Airport in Hanoi


The Transport Ministry’s policy to sell operation rights at airports and to mobilise private investment to develop the country’s airport infrastructure have been much discussed recently. The aviation authority said it was studying the issue and will set up legal frameworks for investors who are interested in the programme.


Truong Van Phuoc, vice head of the National Financial Supervisory Commission, said this is the right path to go for the economy. “The problem is we will sell the rights to whom, how and how much. What are our regulations going to say?”


Le Manh Hung, the general director of the Airport Corporation of Vietnam, said Vietnam needed detailed regulation to maintain fair competition.


“A monopoly may hinder the business of airlines, preventing them from effective use of airports and restricting the number of passengers,” he said.


The head of the Civil Aviation Authority of Vietnam, Lai Xuan Thanh, wants the Finance Ministry involved in the setting of service fees to ensure they are fair to airlines.


Thanh said the state budget and bonds accounted for five percent of total investment at airports in 2001-2014. From 2015 to 2020, the estimated investment to upgrade the infrastructure is more than VND230trn, while the state budget is limited. Thanh said opening airports to private investment is necessary.


Vo Tri Thanh, vice president of the Central Institute for Economic Management, said the government should put competitive pressure on investors.




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