Vietnam’s aviation sector is on the brink of transformation. ATR, the world’s leading manufacturer of regional aircraft, has unveiled a compelling whitepaper, “Propelling Vietnam’s Regional Aviation,” showcasing the immense potential of regional air connectivity. Presented at the “Unlocking Vietnam’s Regional Aviation” workshop in Hanoi—hosted in collaboration with Business France and Vietnamese consultancy TEDI—this study underscores ATR’s commitment to working with key transport and aviation stakeholders to expand Vietnam’s air transport network.
The report highlights the critical role of regional aviation in improving connectivity, bridging transport gaps, and boosting economic growth. Currently, 90% of domestic air traffic is concentrated at just 10 of Vietnam’s 22 airports, leaving many regional hubs underutilised. At the same time, 25% of domestic flights cover distances under 300 nautical miles (555 kilometres) but rely on larger aircraft, reducing cost efficiency and limiting frequency. With a smarter approach to fleet management and infrastructure development, Vietnam can unlock the full potential of its aviation sector.
Jean-Pierre Clercin, Head of Region Asia Pacific at ATR, emphasised the benefits of regional aviation, stating that it can significantly enhance mobility, strengthen secondary cities, and ensure broader economic participation. By integrating with ground transport, ATR’s fuel-efficient turboprops provide a cost-effective and sustainable solution for connecting underserved areas, facilitating travel while optimising the use of Vietnam’s existing regional airports.
Renowned for their fuel efficiency and lower environmental impact, ATR turboprops consume 45% less fuel and emit 45% less CO2 than similar-sized regional jets. These aircraft offer a responsible and commercially viable alternative for shorter routes, allowing airlines to connect secondary cities profitably while expanding access to economic opportunities in previously overlooked regions.
Vietnam’s aviation market is experiencing rapid growth, with domestic travel projected to rise by over 20% from 2023 to 2027. Recognising this demand, the government plans to expand its network of commercial airports from 22 to 30 by 2030. TEDI’s extensive research identified 149 domestic routes within 300 nautical miles (555 km), with 87 routes currently unserved. To bridge this gap, a fleet of 25 ATR 72-600 aircraft would be required, offering airlines and policymakers a clear roadmap to unlocking new market potential.
TEDI’s General Director, Đào Ngọc Vinh, expressed enthusiasm for the collaboration with ATR, noting that Vietnam’s airport expansion plans will be crucial in maximising regional aviation opportunities. As the country continues to develop its aviation infrastructure, TEDI is eager to contribute its expertise to this dynamic sector.
The economic and social benefits of regional aviation are substantial. Studies indicate that a 10% increase in regional flights can lead to a 5% rise in tourism, a 6% boost in regional GDP, and an 8% increase in foreign direct investment. Successful regional aviation strategies in countries such as Japan and New Zealand highlight the transformative power of well-planned connectivity. By investing in regional air transport, Vietnam can enhance its global competitiveness and strengthen domestic economic integration.
As Vietnam pursues its vision of becoming a key aviation hub in Southeast Asia, ATR remains committed to supporting this growth with sustainable, efficient, and economically viable solutions. By fostering strong partnerships with Vietnamese stakeholders, ATR is poised to play a pivotal role in shaping the future of Vietnam’s regional aviation landscape.
Avation PLC (LON:AVAP) is a commercial passenger aircraft leasing company owning a fleet of aircraft which it leases to airlines across the world. Avation’s future focus are new technology low CO2 emission aircraft.
