Vietnam’s aviation market is entering a new phase of competition as major private conglomerates accelerate investments in airports and launch new airlines, reshaping an industry long dominated by established carriers.
In 2025, Vietnam’s aviation sector carried a record 83.5 million passengers, up 10.7% year-on-year. International travel remained a key growth driver, with 46.6 million international passengers, an increase of 12%. For 2026, total passenger traffic is projected to reach 95 million, while cargo volumes are expected to exceed 1.6 million tons, rising 13% and 15% respectively. Analysts at MBS Securities forecast continued strong momentum, supported by visa exemptions, political stability, competitive living costs, and sustained infrastructure investment.
A more favorable regulatory framework has encouraged private participation in airport development. Van Don Airport, developed by Sun Group under a BOT model, was the first privately built airport in Vietnam. Masterise Group has since established an aviation infrastructure arm with charter capital of VND 29.3 trillion, equivalent to USD 1.12 billion, and was selected to invest in Gia Binh International Airport, a project approved by the National Assembly with total investment of VND 196.38 trillion, or USD 7.45 billion.
Sun Group has also expanded its aviation footprint through Sun PhuQuoc Airways and new airport projects, including the civil aviation component of Phan Thiet airport. Meanwhile, Crystal Bay Tourism Group launched Crystal Bay Airlines with charter capital of VND 300 billion, or USD 11.42 million. Smaller entrants such as LOTHA Aviation have also joined the market.
Despite the influx of new players, the domestic market remains concentrated. Vietnam Airlines and VietJet Air together control more than 86% of market share. Bamboo Airways is undergoing restructuring and plans fleet expansion from 2026, while Vietravel Airlines has raised capital to VND 2.25 trillion, or USD 85.67 million, with further increases planned.
Brokerage forecasts suggest Vietnam’s aircraft fleet will expand from 193 planes in 2025 to 260 by 2027. While rising capacity may pressure yields, leading carriers are focusing on higher-margin international routes. However, competition from global airlines such as Emirates, Singapore Airlines, Qatar Airways, Korean Air, and Turkish Airlines is intensifying. Vietnamese carriers currently hold 40% to 45% of international passenger traffic, with VietJet Air accounting for 56% of that share.
As private capital flows into airports and airlines, Vietnam’s aviation sector is poised for both expansion and fiercer competition in the years ahead.
Sources: The Investor
