Airports Corporation of Vietnam | APEA - Asia Pacific Enterprise Awards

CORPORATE EXCELLENCE

Airports Corporation of Vietnam

Airports Corporation of Vietnam (ACV) is the one and only corporation that manages the operations of all 22 airports all over Vietnam.

Established in 2012 as a result of the merging of the three airports corporations namely the Northern, Middle and Southern Airports Corporation, subsequently operating as a joint stock company in April 2016, ACV officially became a public company listed on UPCom stock exchange in June 2016 (with 95.4% state-owned shares).

ACV aims to achieve excellence in its operations by spreading four core values of the country and people of Vietnam: “Peaceful - Civilized - Friendly - Dynamic”, as well as emphasizing the airport business operations of investment development, airport modernization, safety & security, cooperation expansion, and service quality enhancement. This has allowed ACV to better serve the growing aviation industry that is the key driver to bring Vietnam to become the Asia – Pacific region’s leading safe, dynamic and attractive destination in the end.

Airports Corporation of Vietnam is responsible for all airport operations of the country’s 22 airports, including 09 international airports and 13 domestic airports, namely: Tan Son Nhat International Airport, Noi Bai International Airport, Da Nang International Airport, Cam Ranh International Airport, Phu Quoc International Airport, Can Tho International Airport, Phu Bai International Airport, Cat Bi International Airport, Vinh International Airport, Lien Khuong Airport, Dong Hoi Airport, Tuy Hoa Airport, Pleiku Airport, Chu Lai Airport, Buon Ma Thuot Airport, Tho Xuan Airport, Phu Cat Airport, Rach Gia Airport, Ca Mau Airport, Con Dao Airport, Dien Bien Airport, Na San Airport.

For a business to succeed in the global market, it is necessary that the company maintains harmony in the workplace. ACV always understands how significant a working environment is and strives to create ideal working environment.

In ACV, employees are facilitated to enjoy an equal, dynamic, creative, open, trustworthy and transparent working environment, they can be comfortable and devote themselves at work. The Company understands thoroughly on establishing a clear career path, an enjoyable job with varied experiences, and professional training to give our staff the skills to meet the requirements both domestically and internationally. ACV is a place where employees cultivate their work experience so that they are able to promote their career for future development.

Furthermore, the Company would like to convey to its staff is that the company is not only a place to work, but also a place which they can feel like “at home”. ACV creates social value and works closely with their stakeholders. The social value can be displayed at various aspects including: creating jobs for nearly 10,000 employees nationwide, aligning between 22 airports and the communities, developing tourism (GDP increase), and connecting the airports and the world by setting pillars for the development and sustainable strategy.

Furthermore, the Company usually organizes many charity and social activities such as periodical activities (Viet Nam’s War Invalids and Martyrs Day 27 July; People’s Army of Viet Nam Foundation Anniversary 22 December, etc.), sharing activities: visit and present gifts to flood-hit localities, people; build house of gratitude (built for war invalids or martyrs’ families) etc.

Achievements, Impact, and Future Direction
Since ACV was first established, they have been enjoying continuous growth over the years. During the period of 2012-2017, the passenger average growth rate was 20%, with the average rate of 16.3% for domestic passengers and 16.5% for international passengers. ACV is proud to state that these figures are not only statistics, but they are real operating results reflecting the strongly booming aviation industry of Vietnam. This is proven by the fact that Vietnam has been ranked the 7th world fastest-growing aviation market by IATA and expected to be the fifth by 2035. In 2017, ACV welcomed more than 94 million passengers through their airports.

Capitalizing on these advantages, in February 2018, the Prime Minister has issued a Decision regarding the Approval for adjusted planning for development of air transport by 2020 and the orientation towards 2030 setting, among others, the following targets for the aviation sector:

  • The total passenger transport market is expected to increase by an average of 16% per year during 2015 - 2020 period and 8% per year during 2020-2030 period.
  • The total air cargo transport market is expected to increase by an average of 18% per year during 2015 - 2020 period and 12% per year during 2020-2030 period.
  • By 2020, the transport capacity of Vietnamese airlines by 2020 is set to reach 64 million passengers rising to around 131 million passengers
  • By 2020, the transport volume via the airports is expected to hit roughly 131 million passengers while the combined designed capacity of airports is expected to reach 144 million passengers
  • By 2030, the transport volume via the airports is expected to hit roughly 280 million passengers while the combined designed capacity of airports is expected to reach 308 million passengers Reflecting on this leading Decision, ACV has planned forward with a series of projects from 2018 towards 2025 totaling capex investments of approximately 6 billion USD. For example:
    • o Repairing and upgrading the infrastructure at airports to reach the capacity of 185 million pax/ year by 2025 including 16 passenger terminals and support infrastructure throughout the whole airport system (capex: ~1,700 mil USD)
    • o Adding 117 extra aircraft parking spaces (~270 mil USD);
    • o Building 4 new cargo terminals with capacity of 300,000 tonnes/year at Cam Ranh, Da Nang, Cat Bi international airports, and Chu Lai airport, capex ~42.8 mil USD)
    • o Planning and building Phase 1 of Long Thanh International Airport (1 runway and 1 passenger terminal capable of serving 25 million pax/year) completed by 2025, capex ~4 billion USD.

Among these projects, Long Thanh International Airport (LTIA) northeast of HCMC is ACV’s major focus. Located 42 km northeast of Ho Chi Minh City, LTIA has been intended to serve over 100 million passengers annually when fully built to its maximum designed capacity upon completion of three phases (2020-2050) with total required capex 16 billion USD.
  • o Phase 1 is currently going under the Feasibility Study and construction is expected to start in 2022 and completed in 2025, with one runway, a passenger terminal capable of 25 million pax and 1.2 million tonnes of cargo per year, capex 5.45 bil USD.
  • o Phase 2 is to be commenced in 2025 and completed by 2030 adding 1 more runway and another 25 MPA terminal making the airport capable to accommodate 50 MP and 2.5MT of cargo per annum.
  • o Phase 3 is to start in 2030. At its completion by 2050, LTIA is expected to sufficiently serve 100 MP and 5 MT of cargo p.a. These promising projects, which requires large amount of capital investment, together with the welcoming policy for foreign investment by the Vietnamese Government for future infrastructure projects, may provide great opportunities for potential investors from all over the globe.

With its strong and positive vision, ACV is confident and optimistic in the prospect of the aviation market in Vietnam, and the airport sector in particular. The Company also strongly believes that it can harvest rewarding outcomes with the potential market growth.

CORPORATE EXCELLENCE

Airports Corporation of Vietnam

Airports Corporation of Vietnam (ACV) is the one and only corporation that manages the operations of all 22 airports all over Vietnam.

Established in 2012 as a result of the merging of the three airports corporations namely the Northern, Middle and Southern Airports Corporation, subsequently operating as a joint stock company in April 2016, ACV officially became a public company listed on UPCom stock exchange in June 2016 (with 95.4% state-owned shares).

ACV aims to achieve excellence in its operations by spreading four core values of the country and people of Vietnam: “Peaceful - Civilized - Friendly - Dynamic”, as well as emphasizing the airport business operations of investment development, airport modernization, safety & security, cooperation expansion, and service quality enhancement. This has allowed ACV to better serve the growing aviation industry that is the key driver to bring Vietnam to become the Asia – Pacific region’s leading safe, dynamic and attractive destination in the end.

Airports Corporation of Vietnam is responsible for all airport operations of the country’s 22 airports, including 09 international airports and 13 domestic airports, namely: Tan Son Nhat International Airport, Noi Bai International Airport, Da Nang International Airport, Cam Ranh International Airport, Phu Quoc International Airport, Can Tho International Airport, Phu Bai International Airport, Cat Bi International Airport, Vinh International Airport, Lien Khuong Airport, Dong Hoi Airport, Tuy Hoa Airport, Pleiku Airport, Chu Lai Airport, Buon Ma Thuot Airport, Tho Xuan Airport, Phu Cat Airport, Rach Gia Airport, Ca Mau Airport, Con Dao Airport, Dien Bien Airport, Na San Airport.

For a business to succeed in the global market, it is necessary that the company maintains harmony in the workplace. ACV always understands how significant a working environment is and strives to create ideal working environment.

In ACV, employees are facilitated to enjoy an equal, dynamic, creative, open, trustworthy and transparent working environment, they can be comfortable and devote themselves at work. The Company understands thoroughly on establishing a clear career path, an enjoyable job with varied experiences, and professional training to give our staff the skills to meet the requirements both domestically and internationally. ACV is a place where employees cultivate their work experience so that they are able to promote their career for future development.

Furthermore, the Company would like to convey to its staff is that the company is not only a place to work, but also a place which they can feel like “at home”. ACV creates social value and works closely with their stakeholders. The social value can be displayed at various aspects including: creating jobs for nearly 10,000 employees nationwide, aligning between 22 airports and the communities, developing tourism (GDP increase), and connecting the airports and the world by setting pillars for the development and sustainable strategy.

Furthermore, the Company usually organizes many charity and social activities such as periodical activities (Viet Nam’s War Invalids and Martyrs Day 27 July; People’s Army of Viet Nam Foundation Anniversary 22 December, etc.), sharing activities: visit and present gifts to flood-hit localities, people; build house of gratitude (built for war invalids or martyrs’ families) etc.

Achievements, Impact, and Future Direction
Since ACV was first established, they have been enjoying continuous growth over the years. During the period of 2012-2017, the passenger average growth rate was 20%, with the average rate of 16.3% for domestic passengers and 16.5% for international passengers. ACV is proud to state that these figures are not only statistics, but they are real operating results reflecting the strongly booming aviation industry of Vietnam. This is proven by the fact that Vietnam has been ranked the 7th world fastest-growing aviation market by IATA and expected to be the fifth by 2035. In 2017, ACV welcomed more than 94 million passengers through their airports.

Capitalizing on these advantages, in February 2018, the Prime Minister has issued a Decision regarding the Approval for adjusted planning for development of air transport by 2020 and the orientation towards 2030 setting, among others, the following targets for the aviation sector:

  • The total passenger transport market is expected to increase by an average of 16% per year during 2015 - 2020 period and 8% per year during 2020-2030 period.
  • The total air cargo transport market is expected to increase by an average of 18% per year during 2015 - 2020 period and 12% per year during 2020-2030 period.
  • By 2020, the transport capacity of Vietnamese airlines by 2020 is set to reach 64 million passengers rising to around 131 million passengers
  • By 2020, the transport volume via the airports is expected to hit roughly 131 million passengers while the combined designed capacity of airports is expected to reach 144 million passengers
  • By 2030, the transport volume via the airports is expected to hit roughly 280 million passengers while the combined designed capacity of airports is expected to reach 308 million passengers Reflecting on this leading Decision, ACV has planned forward with a series of projects from 2018 towards 2025 totaling capex investments of approximately 6 billion USD. For example:
    • o Repairing and upgrading the infrastructure at airports to reach the capacity of 185 million pax/ year by 2025 including 16 passenger terminals and support infrastructure throughout the whole airport system (capex: ~1,700 mil USD)
    • o Adding 117 extra aircraft parking spaces (~270 mil USD);
    • o Building 4 new cargo terminals with capacity of 300,000 tonnes/year at Cam Ranh, Da Nang, Cat Bi international airports, and Chu Lai airport, capex ~42.8 mil USD)
    • o Planning and building Phase 1 of Long Thanh International Airport (1 runway and 1 passenger terminal capable of serving 25 million pax/year) completed by 2025, capex ~4 billion USD.

Among these projects, Long Thanh International Airport (LTIA) northeast of HCMC is ACV’s major focus. Located 42 km northeast of Ho Chi Minh City, LTIA has been intended to serve over 100 million passengers annually when fully built to its maximum designed capacity upon completion of three phases (2020-2050) with total required capex 16 billion USD.
  • o Phase 1 is currently going under the Feasibility Study and construction is expected to start in 2022 and completed in 2025, with one runway, a passenger terminal capable of 25 million pax and 1.2 million tonnes of cargo per year, capex 5.45 bil USD.
  • o Phase 2 is to be commenced in 2025 and completed by 2030 adding 1 more runway and another 25 MPA terminal making the airport capable to accommodate 50 MP and 2.5MT of cargo per annum.
  • o Phase 3 is to start in 2030. At its completion by 2050, LTIA is expected to sufficiently serve 100 MP and 5 MT of cargo p.a. These promising projects, which requires large amount of capital investment, together with the welcoming policy for foreign investment by the Vietnamese Government for future infrastructure projects, may provide great opportunities for potential investors from all over the globe.

With its strong and positive vision, ACV is confident and optimistic in the prospect of the aviation market in Vietnam, and the airport sector in particular. The Company also strongly believes that it can harvest rewarding outcomes with the potential market growth.