(Hanoi, 24th) According to data from the International Air Transport Association, Vietnam's aviation market has achieved significant growth over the past decade, rising from the 11th largest airline passenger market in the Asia-Pacific region in 2014 to the 8th largest market in 2024.
Among the top ten markets in the Asia-Pacific region, Vietnam ranks first with a growth rate of 121%, mainly due to the country's strong economic performance and its increasing appeal as a tourist destination.
In the past decade, seven of the top ten international source markets have achieved doubled growth. Among them, passenger volume from India has grown tenfold. Simplified visa procedures and the increase in direct flights between New Delhi and Mumbai to Ho Chi Minh City and Hanoi have greatly promoted the development of the tourism industry.
The annual trade volume between Vietnam and India has increased by 11% over the past decade, reaching 15 billion dollars last year.
Passenger flow from South Korea has also grown significantly, increasing more than fivefold over the past ten years. South Korea is Vietnam's largest source of international tourists, with its number of visitors being more than twice that of China's, and it became Vietnam's second-largest source of foreign direct investment in 2024.
Domestic route passenger growth is 107%, lower than the 150% growth rate of international routes during the same period. Domestic passenger volume in 2024 decreased by 24% compared to 2022, which was the peak period of domestic travel recovery post-pandemic.
Part of the reason is that Vietnamese airlines face capacity limitations, with some aircraft grounded due to engine issues, and part of the capacity being redirected to the rapidly growing international market.
IATA also pointed out that U.S. tariff policies might affect the air cargo industry. Air cargo revenue in 2024 increased by more than 30% year-on-year, but passenger revenue still accounts for 71% of the total income of Vietnamese airlines.
With increasing travel demand and the continuous strength of Vietnam's tourism industry, the long-term outlook of the aviation industry remains optimistic.
Data from the Civil Aviation Authority of Vietnam shows that in the first five months of this year, passenger traffic at Vietnamese airports achieved double-digit growth, reaching 49 million person-times, an increase of over 10% year-on-year.
Among them, international passengers exceeded 19 million, an increase of 13%, while domestic passengers decreased by 8% to 30 million.