Many provinces like Son La, Tuyen Quang and Lao Cai within the north, Ninh Thuan and Quang Tri within the central area, Kon Tum within the Central Highlands, and Dong Nai within the south need to construct airports.

Sapa Airport in Lao Cai may have a capability of 1.5 million passengers and is budgeted to price VND3.65 trillion, together with almost VND3 trillion from personal buyers. The breakeven interval is 46 years and two months.

Lined an space of 265 hectares of land in Quang Tri’s Gio Linh District, Quang Tri Airport can be inbuilt two phases with complete estimated funding of VND5.82 trillion, together with VND5.5 trillion from the investor and the rest from the state funds earmarked for web site clearance. It is going to take the investor 47 years and 4 months to interrupt even.

Aviation skilled Nguyen Bach Tung mentioned an airport costing VND3-4 trillion and with a capability of 1 million passengers would earn annual revenues of VND36 billion from flights and VND100 billion from passengers. If the capability is 2 million passengers, the investor would earn round VND250 billion a 12 months, he mentioned.

In contrast to most different infrastructure works, an airport may be very costly to function, with the annual expenditure on electrical energy, water and salaries for round 200 workers — if the capability is a million passengers – including as much as VND40-50 billion.

Curiosity on financial institution loans and depreciation add as much as one other VND300 billion.

Tung mentioned of their preliminary years new airports, particularly in mountainous areas, function at nicely under capability, however even when the design capability is reached it will take many years to recoup the funding.

Lots of the nation’s 22 airports have but to succeed in most capability. In 2019, earlier than the Covid-19 pandemic broke out, solely 10 of them had reached or surpassed their designed capability.

Some have few flights and revenues are usually not sufficient to cowl working prices, however since 21 of them — besides Van Don within the northern province of Quang Ninh — are managed by the Airports Company of Vietnam, airports with excessive revenues take up the slack.

At a latest authorities assembly, Deputy Minister of Transport Le Anh Tuan mentioned it’s troublesome to mobilize funds to improve or broaden present airports for the reason that requirement is normally massive whereas revenues are low at most.

The build-operate-transfer (BOT) possibility is just not possible for the reason that payback interval is simply too lengthy, he mentioned.

To draw airport buyers, central and native governments ought to give them applicable capital assist in the course of the funding stage, even in operation stage, he mentioned.

Economist Ngo Tri Lengthy mentioned cities and provinces ought to rigorously assess their financial potential and the probably variety of passengers.

Infrastructure tasks with a payback interval of 10-15 years are efficient and simple to draw buyers, he added.