VIETNAM: VietJet Air Expands To Kuala Lumpur

VietJet Air is entering a new phase as the fast-growing Vietnamese LCC takes on AirAsia on the Ho Chi Minh-Kuala Lumpur route. Kuala Lumpur will become the sixth international destination for VietJet and only the fourth international market where it faces competition from other LCCs.

Since its late 2011 launch VietJet has focused primarily on the domestic market, where it now serves 17 destinations. However Vietnam’s domestic market is starting to become saturated after four years of rapid growth, and VietJet strategically needs to establish a bigger international presence.

VietJet is also expanding in Taiwan, with planned new services to Kaohsiung and Tainan and a second daily flight on the Ho Chi Minh-Taipei route. But VietJet faces challenges in establishing its brand overseas and has already experienced some setbacks in the international market.