Roundup: Selling airport operation rights sparks debate in Vietnam

Vietnamese government's recent nod to sell operation rights of part of several airports to private airlines has sparked lively debates across the country.

At a meeting on mobilizing socialization capital for aviation infrastructure development held by the Ministry of Transport (MoT) here on Wednesday, the MoT's minister Dinh La Thang said he accepted to sell all operation right of passenger terminal 1's hall E of capital Hanoi's Noi Bai International Airport to VietJetAir, a low-cost airline for a period of 20 or 50 years.

Earlier, VietJetAir has proposed to purchase operation rights of all parts of passenger terminal 1 of the airport for 20 years.

In addition to the capital airport, the MoT will sell operation rights of several other international airports across the country such as southern Phu Quoc airport, central Da Nang and Cam Ranh airports in 2015, reported Bao Giao Thong (Transport News), an online newspaper under the MoT on Thursday.

A lively debate has been breaking out among local officials and economists over the newly-released information.

Commenting on the new move of MoT, head of Civil Aviation Authority of Vietnam (CAAV) Lai Xuan Thanh said on local Tuoi Tre (Youth) online newspaper on Friday that the idea will pave the way for attracting private and foreign investment into airports in Vietnam.

Despite a new issue, which requires further research, the MoT will soon make public list of items in need of private investment in several airports like Phu Quoc, Cam Ranh and Da Nang, Thanh told Tuoi Tre.

Luong Hoai Nam, general director of Hai Au Aviation Company was quoted by Tuoi Tre on Friday as saying that he supports socialization of investment and operation of airports including investment to build a new airport, hiring an airport or purchase of operation right of an airport.

"Vietnam is out-dated compared to countries in the region and in the world in investment and operation of airports. In Cambodia, three largest airports in Phnom Penh, Siem Reap, and Sihanoukville are now managed and operated by France's ADP-M group," Nam said, citing the similar situations in Thailand's Koh Samui and Trat airports.

Nam expected the MoT's idea will create legal framework for mobilizing private and foreign investment in expanding and modernizing existing airports of Vietnam as well as building more airports across Vietnam.

Despite supporting the MoT's idea, managing director of a United States-run investment fund who requires anonymity said on local Thanh Nien (Young People) online newspaper on Friday that after a private airline purchases operation right of airports, it is difficult to control monopoly and unfair competition among the airlines and others.

Thus, the Vietnamese government should note down commitments of investors on prices of services during negotiation process so that consumers can get benefits from better service and stable price, said the director.

Pham Chi Lan, a local economist, seemed to hold a more skeptical viewpoint over the issue.

Lan said on Thanh Nien on Friday that she proposed not to sell operation right of airports to foreign investors and set priorities to domestic investors. The state should remain able to manage the airport as airports are related to national security concern.

Echoing Lan, local financial and economic expert Bui Kien Thanh said the country should not sell even a passenger terminal as planned. Thanh said an airport not only relates to trade, service issues, but also directly links national safety and security.

Most Vietnamese airports are for dual-use, for both civil and military purposes. After being equitized or operation right sold, the state is urged to play dominant role in management of the airport, Thanh suggested.

Meanwhile, local netizens are eager with the information that operation right of airports will be sold to private airlines.

A reader called himself "dan" commented on Lao Dong (Labor) online newspaper on Friday that "The news is great. Let private carriers have more ground to develop. They are real impetus of a transparent economy."

Another reader, hoangnhat1977, commented on a forum namely " webtretho" as saying that "VietJetAir is running good business. After the sale of operation right of some airports, I wish the airline will launch more low-cost air routes, which benefits consumers." Endi