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Vietnam’s Ministry of Transport takes action to reduce domestic airfares

Mr Nguyen Van Thang
The Vietnamese Ministry of Transport Mr Nguyen Van Thang

Vietnam’s Ministry of Transport is taking action to reduce domestic airfare prices through better regulation, increased capacity, and collaboration with airlines and travel agencies.

The Vietnamese Ministry of Transport Mr Nguyen Van Thang has implemented a series of measures aimed at reduce domestic airfare prices. These initiatives target government agencies and airlines alike, focusing on improved regulation, capacity expansion, and strategic pricing practices.

The Civil Aviation Authority of Vietnam (CAAV) will dive deep into domestic airfare structures to find ways to lower ticket prices while keeping the government, airlines, and passengers happy. They’ll also join forces with the tourism industry, local authorities, and travel agencies to create bundled travel packages that streamline logistics and potentially reduce costs by optimizing supply chains. To prevent misleading advertising and ensure clear pricing, the Ministry is tightening regulations on airfare sales practices. The CAAV, working with specialized inspection units, will crack down on airlines that don’t comply and make sure all components of passenger ticket prices are clearly communicated. To address rising travel demand, particularly during peak seasons, the CAAV will work on expanding domestic flight capacity. This could involve encouraging airlines to invest in larger fleets. Finally, the Transport Development and Strategy Institute (TDSI) will be building a comprehensive database on air travel demand and airfare pricing. This data will be key in making future decisions about optimizing transport capacity and ultimately reducing travel costs.

The Ministry of Transport’s measures to reduce domestic airfares are expected to create a more competitive and transparent domestic air travel market in Vietnam. Increased capacity, strategic airline pricing, and improved regulatory oversight could lead to a significant reduction in airfare prices. This, in turn, would boost domestic tourism and contribute to Vietnam’s overall economic growth. So, pack your bags, Vietnam – affordable travel adventures await!

Airport Expansion Takes Off to Accommodate Growth

Adding to the good news, the bidding process for the expansion of the Noi Bai International Airport in Hanoi officially kicked off on May 19th. Prime Minister Pham Minh Chinh himself attended the ceremony, highlighting the critical role this project plays in Vietnam’s future.

The expansion of the international terminal, which currently handles 10 million passengers annually, aims to double its capacity to 15 million. This significant upgrade is crucial as the airport nears its current limitations and anticipates serving up to 100 million passengers by 2050.

The project is expected to significantly boost Vietnam’s air travel capacity, potentially allowing Noi Bai to handle 30 to 40 million passengers per year. This expansion will ensure the smooth flow of both domestic and international travel as Vietnam’s tourism industry continues to flourish.

Co-Founder & Chief Editor - TravelDailyNews Media Network | + Articles

Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales. She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.