Vietnam’s air freight industry is demonstrating remarkable potential and a rapid recovery despite the challenges posed by the pandemic. The sector has played a pivotal role in the country’s economic growth, contributing significantly to job creation and GDP. Although global air freight has suffered from low capacity due to border closures and external conflicts, Vietnam’s air freight industry has shown resilience and attracted substantial investments. This summary examines the current state of the industry, its growth potential, and the challenges it faces, presenting opportunities for small business owners.

As of March 2022, Vietnam’s domestic market had six airlines operating an average of 55-60 domestic routes, connecting major cities such as Hanoi, Da Nang, and Ho Chi Minh City. The pandemic significantly impacted the air passenger transport market, leading to a decline in international flights. However, international air freight witnessed a dramatic surge of over 21.3% compared to the previous year. Vietnam’s export-oriented manufacturing sector, particularly in electronics and textiles, has fueled the demand for air freight, making it an attractive investment opportunity.

Despite the growing demand, Vietnam does not have a dedicated airline for cargo transport. Commercial passenger airlines have incorporated cargo transport to offset losses during the pandemic. However, there are plans for IMEX Pan Pacific Group’s IPP Air Cargo subsidiary to become the country’s first air freight company, potentially partnering with foreign carriers to boost Vietnam’s logistics industry.

Vietnam’s participation in the ASEAN Open Skies agreement has created a favorable environment for the growth of the air freight industry in the region. The country’s exports, including agricultural products, rely on air transport for a significant portion of their value. However, infrastructure and logistic services have struggled to meet the current demand, leading to soaring logistic costs. Investments in modern equipment and infrastructure are necessary for the development of air freight, and efforts are underway to improve airport infrastructure and develop plans for various airports.

Another challenge facing the air freight industry is the shortage of well-trained human resources. The logistics industry, including air freight, lacks skilled labor, with a shortage of approximately 2 million employees. This presents an investment opportunity for specialized training programs to provide high-quality terminal workers and crew members for cargo transport.

Vietnam’s air freight industry is an emerging economic area that holds great potential for investors and logistic players. With favorable policies and a conducive business environment, the country presents itself as an attractive destination for investment in the airline sector. Small business owners can capitalize on this opportunity by exploring potential partnerships, investments, and specialized training programs, positioning themselves for success in Vietnam’s thriving air freight industry.