Central park routes

The Hanoitimes – People who returned from China will be quarantined for 14 days before coming home.

Vietnam will repatriate its citizens from China on fears of worse situation of novel coronavirus (nCoV)-caused epidemic that has killed 426 people and caused 20,626 infections in China.

On February 2, Vietnam’s Prime Minister Nguyen Xuan Phuc asked the Ministry of Foreign Affairs to work with the Chinese side to bring Vietnamese nationals back to the country through border gates and airports.

Some airlines are allowed to resume flights to China to bring Vietnamese citizens back to the country. Photo: VNA

They will return to the home country through border gates in the northern provinces namely Huu Nghi in Lang Son province, Lao Cai in Lao Cai province, Mong Cai in Quang Ninh province, Tay Trang in Dien Bien, and Thanh Thuy in Ha Giang.

A number of others will fly to airports across the country, including Van Don in Quang Ninh and some small aviation terminals in the central and southern regions, except international ones.

Since February 1, the Civil Aviation Authority of Vietnam (CAA) has halted all flights between Vietnam and China. However, some domestic airlines need to resume several flights to bring Vietnamese citizens back to the country. All flights after the government ban must get approval from different agencies.

In another move, the Ministry of Transport has worked with Chinese agencies to halt the operations of transnational railway route Gia Lam – Nanning – Beijing in the next few days.

So far, Vietnam Railway Corporation has stopped selling tickets of the daily railway route which carries average 130 passengers per day.

Railway stations of the transnational route have been sterilized while railway stewards, porters, and passengers are all required medical quarantine before entering Vietnam.

Two Chinese nationals who were infected nCoV (the first coronavirus infections found in Vietnam) was passengers of SE5 railway route from Nha Trang to Saigon on January 19. The railway steward serving two Chinese passengers has been quarantined.

The Hanoitimes – Vietnamese air carriers have listed new domestic airfares which are higher than the fares applied during the social distancing period.

In the midst of the second social distancing period against the Covid-19 pandemic, Vietnamese airlines have quoted new domestic airfares that are three to five times higher than the fares applied since the beginning of the social distancing period, but still remain below the regulated ceiling price.

Source: Vietnam Airlines

Prices on the Ho Chi Minh City – Hanoi route range from VND3.6 million to VND6.7 million for Vietnam Airlines economy class, from VND1.7 million to VND2.9 million for Bamboo Airways’, from VND1.8 million to VND2.1 million for Vietjet Air’s.

Fares of the Ho Chi Minh City – Hanoi route

Airline	Economy class	Business class
Vietnam Airlines	US$152.8	US$284.6
Bamboo Airways	US$72.1 – US$123	US$161.4 – US$271.9
Vietjet Air	US$76.4 – US$89.1	US$89.1

Source: Bamboo Airways

Why high airfares?

The prices of domestic flights vary, depending on the time of purchase, Tran Trung Kien, a Thu Duc district-based ticket agent in Ho Chi Minh City told VnExpress . “Travel demand will increase as the social distancing will soon end and in anticipation of the coming public holidays (Reunification day of April 30 and May Day). Supply shortage drives airfares up,” Kien was quoted as saying.

Some airlines explained that travel demand between Hanoi and Ho Chi Minh City is high even during the time of social distancing. Meanwhile, in compliance with the social distancing measures against Covid-19, flights are operated at half capacity with seating arrangement of just two passengers in one row to ensure a safe distance.

According to the Civil Aviation Authority of Vietnam (CAAV), the Hanoi – Ho Chi Minh City route has been reopened but operated at the frequency of 5-6% below the pre-pandemic capacity. The agent also told local media that though domestic airfares are rising, they are still below the regulated ceiling.

Nguyen Xuan Thuy, a local transport insider, told Kinh te & Do thi that the airlines have heavily suffered from the Covid-19 pandemic and higher air fares are intended to offset the losses. However, as the Covid-19 pandemic is negatively affecting all people and every industry, “I suggest the transport ministry and airlines explain this increase more reasonably,” he was quoted as saying.

Due to the pandemic, 98% of airplanes have been grounded, local airlines could see a decline in revenue of up to VND65 trillion (US$2.7billion), much higher than the VND30 trillion (US$1.27 billion) previously estimated by the CAAV.

After three weeks of social distancing, domestic airlines have struggled with financial woes, according to Saigon Times . The airlines’ cash flow has been imbalanced in the first four months of this year, which makes it hard for them to recover faster. Cash flow from airfares and fuel cost reduction has not covered the fixed costs of the airlines.

In order for airlines to overcome the crisis, it is necessary to quickly issue policies on exemption and reduction of state-controlled aviation services (plane parking fees and screening fees, among others), environmental protection taxes for shipping companies, including airlines, to lower costs for air carriers, Saigon Times wrote.

In addition, the government should also refund value-added tax (VAT) in 2020 for industries directly affected by the pandemic such as aviation and tourism so that the enterprises can cover their operating costs.

The Hanoitimes – Vietnam’s is considered as one of the fastest growing aviation markets in Asia.

Vietnam should invest in hub airports in terms of scale and capacity instead of massively building ones, according to the Civil Aviation Authority of Vietnam (CAAV)’s proposal on its draft plan on the development of the national airport system by 2030, with a vision to 2050.

Vietnam needs to build hub airports. Photo: Vietnam Airlines

Deputy Minister of Transport Le Anh Tuan said some airports are curently operating beyond the designed capacity, many of their items have not been upgraded, especially, no airport has been qualified in the international large hub category.

Tuan was speaking at a conference held in Hanoi on March 3, which aimed to seek ideas for national airport system development.

According to the draft plan, Vietnam will have 26 airports by 2030 and 30 ones by 2050, half of them will be international airports.

With the strong growth in the aviation industry in the future, the plan on the national airport system needs being studied carefully to suit the current situation and the socio-economic development of the country, according to local experts.

Localities proposed massively building airports

According to the CAAV, some provinces have recently wanted to turn their provincial airport into international airport. However, airport is a necessary but not a sufficient condition for the tourist development and investment attraction of a province. Other infrastructures are more essential to attract private investment as well as tourist arrivals.

Phan Xuan Dung, Chairman of the Vietnam Union of Science and Technology Associations, suggested that the plan on the national airport system development should be based on the projection of passenger number,  the overall transport network development as well as the air routes system and the development plan of each airport.

At the same time, the aviation planning should take into account not only the probable economic efficiency, but also the compatibility between civil and military aviation, ensuring aviation security and national defence, Dung added.

Assoc. Dr. Tran Kim Chung, Deputy Director of the Central Institute for Economic Management, said that forecasting the international and domestic developments in the 2021-2030 period is very important and necessary for the national airport planning.

In addition, it is necessary to identify competitors and partners among the airports of other countries in the region, then, consider domestic economic scenarios to have plans for the development of both infrastructure development and airports, Chung said.

Resources and infrastructure connections

Deputy Minister of Transport Le Anh Tuan said that the plan should have a mechanism to attract resources in order to achieve the goals.

Dr. Chung recommended that the mobilization of non-state economic sectors to invest in airport construction should be seen as a policy and a solution.

Dr. Tran Quang Chau, Chairman of the Vietnam Association on Aviation Science and Technology, affirmed that for the effective mobilization of resources in the way of involving private investment in construction and operation of airports, a transparent policy is a must. “The policy should ensure a harmonization of interests among investors, the state and the people so that the investor would trust in the policy and pour money in investing and operating airports,” he said.

In addition, Dr. Chung also raised the issue of transport connectivity of infrastructures in the planning of the airport development. “Airport planning must be considered as an input to other plans and vice-versa ,” he said.