What Happened
New Entrants Bring Competition As Fuel And Foreign Exchange Volatility Rise
Vietnam’s aviation market is experiencing rapid growth, with new entrants and expanding passenger and cargo demand. However, the market is also facing challenges such as fuel and foreign exchange volatility, which are increasing costs for airlines. Aircraft shortages are adding further pressure, with global supply-chain disruptions and engine problems affecting the availability of aircraft. According to the Civil Aviation Authority of Vietnam, the market handled 45.49 million passengers and 813,200 tonnes of cargo in the first half of 2026, up 9.8 per cent and 16.4 per cent year-on-year, respectively. This growth potential has drawn major private groups into both airline operations and aviation infrastructure, as reported by Vietnam Law & Legal Forum Magazine.