VIETNAM: South Korean Tourists Love Visiting Vietnam

South Korean arrivals are soaring and Vietnam’s increasingly lucrative tourism industry is changing to accommodate the influx. Hanoi and Ho Chi Minh City are abuzz with Korean culture while beachside destinations like Da Nang, Hoi An and Phu Quoc are tailored for Korean tastes

Vietnam for a long time has been a backpackers’ paradise. Its vibrant street-food culture, a host of colourful heritage sites and breathtaking scenery offer plenty to adventure-seekers on a budget.

But this is beginning to change. Once-sleepy beach towns are transforming into five-star resorts. For better or worse, city streets once filled with hostels and homestays are being replaced with one-stop shopping centre/hotel complexes.

Vietnam’s tourism and hospitality industries have expanded rapidly in the past few years. Alongside on-trend international hotspots such as Iceland and Mongolia, Vietnam was in 2017 identified by the United Nations World Tourism Organisation as one of the world’s 10 fastest-growing travel destinations.

During the first half of 2018, Vietnam welcomed 8 million international visitors, an increase of 27.2 per cent from the previous year. Overall tourism revenue was an estimated 312 trillion dong (US$13.4 billion), 22.5 per cent more than in the first half of 2017.

The government has ambitious plans, aiming for 20 million international visitors per year by 2020. In turn, it aims to develop the tourism industry into a sector worth US$35 billion annually, one that would be 10 per cent of Vietnam’s GDP.

This growth has been driven partly by a spike in South Korean visitors, with knock-on effects in the tourism, hospitality and aviation sectors.

Last year, mainland China accounted for the most visitors to Vietnam, with 3.4 million arrivals. South Korea was not far behind, with 3.16 million, an increase of 46.5 per cent from the previous year, according to local media.

Flights from Vietnam to South Korea accounted for a remarkable 44.5 per cent of the country’s outbound traffic in 2018. By comparison, China-bound flights made up 14.8 per cent in the same year.

South Korean airlines Asiana and Jeju Air began offering daily flights between Busan and Da Nang, the Vietnamese coastal city, increasing the route’s capacity by 86 per cent.

As a result, Da Nang, known for its resorts and pristine beaches, became the top foreign destination for South Koreans last summer.

Many South Koreans fly the route to visit Hoi An, a resort town about 30km from Da Nang. According to Vietnamese reports, more than 240,000 South Koreans visited Hoi An last year, an increase of 70 per cent from 2016. They now outnumber the 200,000 mainland Chinese visitors arriving annually.

Vietjet prides itself on having served more than 2 million Koreans, many of whom were travelling overseas for the first time. In December, the budget carrier announced a new route linking Seoul and Phu Quoc island, another destination attracting South Koreans.

The north of Phu Quoc island caters to Koreans, with resorts built specifically for this market. Most Koreans never leave their resort, which is equipped with a medical centre and golf course.

From the 1960s until the late 1980s, South Koreans were not allowed to travel freely and passports were issued only for special reasons. After the nation’s democratisation in 1988, overseas travel was finally permitted and, as its middle class expanded over the next three decades, many South Koreans began to explore the world.

You will see more and more Korean brands and cafes every time you visit Vietnam. There are a lot of Korea-related businesses. Vietnamese people also love Korean culture.

As in many Asian countries swept up by the so-called K-wave, South Korean culture has begun to exert a broad influence on Vietnam’s urban environment.

Korean retail brands, cafes and eateries are popular, and cater to local populations as well as the growing influx of Korean visitors.

K-pop musicians sell out large arenas. Korean soap operas have been popular on local television for years. Korean movies are in theatres every week. Korean barbecue and noodle restaurants can be found all over the major cities and even appear in smaller cities.

Chinese visitors, on the other hand, have not been as warmly embraced. Vietnamese media reported two years ago that the coastal city of Da Nang would publish a booklet in Chinese on do’s and don’ts for tourists, after reports surfaced of mainland tourists and tour guides behaving badly.

Some of the mistrust and hostility towards the Chinese stemmed from historical conflict between the two countries that has flared up in recent times.

Four years ago, China moved an oil rig into Vietnam’s territorial waters and several Chinese-owned factories in Vietnam were burned down, with protests resulting in the death of at least 20 Chinese expats.

China restricted tourists coming to Vietnam, which really hurt the tourism industry. South Korea’s economic support for Vietnam has also contributed to the warm relations.

South Koreans are by far the largest foreign investors in Vietnam with over US$65 billion in registered capital in the country. Samsung has opened several enormous factories that manufacture phones and electronics.

Hanoi and Ho Chi Minh City both have Korea towns where a significant amount of South Korean expats live.

Many younger Korean travellers forego a Korean experience while in Vietnam. But older travellers often with larger budgets still expect access to Korean services.

Those in their 40s and above look for Korean food and services during their stay. People of older age don’t travel a lot and need tour guides.

It has become second nature for Vietnam’s hospitality industry to offer Korean-language options.

Companies provide Korean brochures and Korean language menus. Travel agencies describe their information in Korean, and their staff can speak Korean fluently.

Vietnam’s jet fuel demand will surge to a record this year as its tourism industry attracts a wave of new visitors and the country’s airlines are rapidly expanding.

The country is on track to have 38 million international passengers and 16 million visitors this year, according to data from CAPA Centre for Aviation. That is up from 18 million passengers and 8 million visitors in 2015, according to the data.

Aviation demand in Vietnam is booming, Fuel consumption in Vietnam will reach a record high this year and will keep rising for the years to come, said Tran Hoai Nam, vice-president of Vietjet, Vietnam’s biggest private airline.

He added Vietnam’s growth in foreign arrivals was the highest in Southeast Asia, rising 8.7 per cent annually.

The surge in traffic has translated into a rush of jet fuel demand in Vietnam. Through November, the country has imported 1.87 million tonnes of the fuel, according to customs data, equal to 14.8 million barrels, and up 18 per cent from the same period last year.

For 2018, jet fuel demand in Vietnam was estimated to be increased by about 20 to 25 per cent in comparison with 2017, mostly due to the increase in consumption of the international flights, said a Hanoi-based trader at one of country’s jet fuel suppliers, who asked to remain unidentified due to company policy.

Vietnam currently consumes about 18 million barrels of jet fuel per year, according to data from Petrolimex Aviation.

By 2035, Vietnam will have 150 million airline passengers per year, nearly four times what it was in 2015, according to a 20-year forecast from the International Air Transport Association (IATA).

Over the same period, India will have 442 million passengers, 3.6 times what it was in 2015, while China will have 1.3 billion passengers, 2.7 times what it was in 2015, IATA said.

In November, Vietnam issued an aviation licence to Bamboo Airways, which would be the country’s fifth airline after Vietnam Airlines, Jetstar Pacific Airlines, Vietjet Aviation and Vietnam Air Services Co.

Bamboo signed a provisional deal to buy 20 of the wide-body 787-9 jets from US manufacturer Boeing and agreed a memorandum of understanding with Europe’s Airbus for up to 24 of the narrow-body A320neo jets in March.

VietJet, which currently operates 60 Airbus jets, has signed a US$6.5 billion agreement to buy 50 new jets.

Vietnam’s jet fuel imports will continue to surge as the country only has two refineries, Dung Quat in the central province of Quang Ngai and Nghi Son in Thanh Hoa province, near to the capital Hanoi, which only started operations last year.

Vietnam imports most its jet fuel from refineries in Singapore, Thailand and China, trade data showed.

Despite the steep growth outlook for Vietnam’s aviation sector, passenger growth might may be uneven as the country grapples with capacity constraints at its airports.

Vietnam’s biggest airport Tan Son Nhat, serving Ho Chi Minh City in the south, receives about 10 million more passengers per year than it is designed to serve.

The government is planning a second international airport at Long Thanh, 40km east of Ho Chi Minh City, that will serve 25 million passengers a year starting in 2025.


Tourism Observer

VIETNAM: Vietnam Airlines Airbus A321 Lands On A Runway Under Construction

Vietnam Airlines Airbus A321, performing flight from Ho Chi Minh City to Nha Trang with 203 passengers and 7 crew, had performed an RNAV runway 20 approach and was cleared to land on runway 20 but touched down on the runway under construction to become runway 20L.

The aircraft rolled out, the engines sucked a number of foreign objects from the runway surface in.

Vietnam’s Civil Aviation Authority rated the occurrence a serious incident, suspended the flight crew, and opened an investigation into the occurrence.

According to the captain’s narrative the runway was marked 20 with no crosses over the threshold or down the runway.

The crew did notice that no runway lights including PAPIs were active, however, realized only after touchdown that the runway was still under construction and brought the aircraft to a full stop.

The charts in use did not depict the runway under construction.

On May 2nd 2018 The Aviation Herald received information, that the new runway had been put into operations for a 300 meters portion to be used only by military aircraft.

This had been NOTAMED in 2017 permanently, however, the NOTAM had not been forwarded to the crew.

In addition, the airline stated: The VVCR airport charts 10-9 and 10-9-0 depict Unservicable Area for the construction zone of the new runway and taxiways.

Although runway 02R/20L was partly put into operations for military aircraft, an AIP Supplement released by Vietnam’s Civil Aviation Authority on Apr 26th 2018 makes clear the runways had not yet been renamed as necessary to become 02L/R and 20R/L, runway 02L/20R still is named runway 02/20 by Apr 26th 2018.


Tourism Observer

VIETNAM: Vietnam Airlines Airbus A321 Accidentally Scratches Tail While Landing

The first officer had difficulty maintaining localizer and glideslope as well as maintaining speed, the captain provided instructions to correct, the corrections made by the first officer were insufficient however.

Vietnam Airlines Airbus A321, performing flight from Pleiku to Hanoi (Vietnam), was on final approach to Hanoi with a low time first officer flying the aircraft fully manually autopilot and autothrust off.

The speed decayed and the rate of descent increased, in the flare the first officer applied a large nose up input to arrest the descent, the aircraft nonetheless touched down very firmly with the tail contacting the runway surface.

The aircraft rolled out without further incident, the crew was unaware of the tail strike and taxied the aircraft to the gate, where ground personnel discovered the damage to the tail.

There were no injuries, the aircraft sustained substantial structural damage to sections 17 and 18.

The aircraft is still on the ground in Hanoi 63 hours after the occurrence.

About Vietnam Airlines

Vietnam Airlines is the flag carrier of Vietnam. Founded in 1956 under the name Vietnam Civil Aviation, the airline was established as a state-owned enterprise in April 1989.

Vietnam Airlines is headquartered in Long Bien District, Hanoi, with hubs at Noi Bai International Airport and Tan Son Nhat International Airport.

The airline flies to 64 destinations in 17 countries, excluding codeshared services.

From its begining until the early 1990s, Vietnam Airlines was a minor carrier within the aviation industry as it was hampered by a variety of factors including the socio-economic and political situation of the country.

With the government's normalization of relations with the United States, the airline was able to expand, improve its products and services, and modernize its ageing fleet.

In 1996, the Vietnamese government brought together 20 service companies to form Vietnam Airlines Corporation, with the airline itself as the centrepiece.

In 2010, the corporation was restructured into a limited liability company and renamed Vietnam Airlines Company Limited. A seven-seat management board, members of which are appointed by the Vietnamese Prime Minister, oversees the company.

As passenger transport constitutes its core activity, Vietnam Airlines plays a crucial role in the economic development of the country.

It owns 100% of Vietnam Air Service Company – a regional airline in southern Vietnam, 70% of the low-cost carrier Jetstar Pacific Airlines, and 49% of the Cambodian national airline Cambodia Angkor Air.

In addition, the corporation earns revenue from airline catering and the maintenance and overhauling of aircraft through a number of its subsidiaries, including Vietnam Airlines Engineering Company and Vietnam Airlines Caterers.

The company has also diversified its investments in the aircraft-leasing and airport ground-servicing industries, and is looking to manufacture aircraft components. It controls and operates a cargo division, Vietnam Airlines Cargo.

Vietnam Airlines became a member of SkyTeam in June 2010, making it the first Southeast Asian carrier to have joined that alliance.

It is expected to be restructured and partially privatized to help it streamline its services and better compete with other airlines.

This would facilitate its long-term development plan that involves the improvement of its products and services, and the expansion of its fleet and flight network, as the airline aspires to become the second-largest full-service carrier in Southeast Asia by 2020.

Vietnam Airlines has its origins in January 1956,when it was established by the North Vietnamese government under the name Vietnam Civil Aviation following the nationalization of Gia Lam Airport.

It was instituted after the government signed the Decree No. 666/TTg. The airline was created as part of the air force for civilian purposes with support from both the Soviet Union and China.

Initially, its fleet consisted of two Lisunov Li-2s that were later replaced by two Ilyushin Il-14 and three Aero Ae-45s.This was due to an embargo that prohibited the airline from leasing and/or buying American technology or components.

The airline's development and expansion was seriously hampered by the Vietnam War (1954–1975). Following the war, its first international destination was Beijing, followed by Vientiane in 1976.

During that year, the airline was known as General Department of Civil Aviation in Vietnam, and began full operations. It carried around 21,000 passengers, one-third of whom were on international flights, and 3,000 tonnes (6,600,000 lb) of cargo.

In 1978, another important destination of Vietnam Airlines was added, with flights offered to Bangkok. The late 1980s and early 1990s saw the expansion of the network to Hong Kong, Kuala Lumpur, Manila and Singapore.

In 1990, the company initiated discussions regarding the incorporation of Western-built aircraft into the fleet. Later that year, however, the carrier had to cancel the acquisition of two Airbus A310s due to their use of US-manufactured engines.

By July 1991, the airline struck a wet-lease agreement with Dutch lessor TransAvia. The aircraft involved was a Boeing 737-300, that arrived in Vietnam Airlines' livery.

However, the aircraft was returned after the U.S. State Department pressured the Dutch lessor to remove the aircraft from Vietnam.

Subsequently, Vietnam Airlines organized a similar but more complicated deal with TEA Basle, who spent the rest of 1991 negotiating a deal with US authorities.

Eventually, a solution stating that the Boeing 737 must be positioned outside Vietnam, with no logo or lettering of Vietnam Airlines.

On these conditions, it could operate on behalf of Vietnam Airlines was reached.

In December 1991, Cathay Pacific and Vietnam Airlines agreed on a 50–50 joint venture to operate between Hong Kong and Vietnam, as the airline's Tupolev Tu-134 fleet did not meet Kai Tak Airport's noise restrictions.

In October 1992, the Boeing 737 was supplemented with an Airbus A310. However, a dispute with Bulgarian Jes Air over who should pay for the repairs after the aircraft sustained an engine failure led to its replacement with another A310 from GATX, also operated by Jes Air.

A similar dispute with United Technologies encouraged the airline to switch from Airbus to Boeing.

Hence, a Boeing 767-200ER, leased from Ansett Worldwide Aviation Services (AWAS), arrived in January 1993, and a Royal Brunei Airlines Boeing 767-300ER, arrived the following year.

In October 1993, the first Airbus A320-200 was incorporated over a two-year wet-lease contract with Air France.

Vietnam Airlines by now had started discussions with Air France about a partnership, and the French carrier agreed to lease its Airbuses to Vietnam Airlines, and also to provide customer support and pilot/crew training.

By that time the route network had further expanded internationally, seeing the incorporation of destinations such as Paris, Tokyo, Seoul, Taipei, Sydney, and Melbourne.

In 1993, the airline carried 1.06 million passengers, 418,000 of whom were on international flights.

The airline became the flag carrier of Vietnam in 1993, after having completed a restructuring programme that was started four years earlier. In that year, the airline split from the Civil Aviation Administration of Vietnam (CAAV) and became a state enterprise.

The move was similar to the reorganization of the Civil Aviation Administration of China into several regional airlines in 1987.

Despite the fact that the airline gained some independence from the CAAV, it was still known as Civil Aviation Administration of Vietnam within the 1993–1996 period.

In February 1994, US President Bill Clinton lifted the trade embargo to allow Vietnam Airlines the ability to acquire Western-built aircraft.

Consequently, Vietnam Airlines announced in April of the same year that it would be phasing out its inefficient Soviet planes.

By April 1995, the fleet consisted of nine Airbus A320s all of them leased from Air France, 11 Antonov An-24s, four ATR72s, two Boeing 707-300s, three Ilyushin Il-18s, nine Tupolev Tu-134s and three Yakovlev Yak-40s.

At this time the route network comprised 14 domestic destinations including Ban Me Thuot, Da Nang, Dien Bien Phu, Hue, Nha Trang, Phucoq and Pleiku and 16 international destinations including Bangkok, Hong Kong, Kuala Lumpur and Singapore.

On 27 May 1995, the airline, along with a number of other aviation-related businesses, were incorporated to establish Vietnam Airlines Corporation.

Two Fokker 70s were purchased in mid-1995 for US$50 million; they were aimed at partly replacing the Tu-134 fleet on domestic routes as well as at serving as VIP transport.

In December 1995, discussions with GECAS for the lease of three additional, second-hand Boeing 767-300ERs were under way; these ex-Continental Airlines aircraft would act as a replacement for wet-leased Boeing 767 aircraft, three -300ERs and one -200ER leased from AWAS and Royal Brunei in the fleet.

In September 1996, Vietnam Airlines started offering business class services and in 1999, the airline launched its frequent-flyer program, Golden Lotus Plus.

During 1996, Vietnam Airlines looked for aircraft which would substitute the A320s wet-leased from Air France when the deal was over. Apart from acquiring further A320s, the airline considered Boeing 737s and McDonnell Douglas MD-90s.

In February 1996, GECAS delivered the first of three Boeing 767-300ER to the carrier, on dry-lease for five years.

In October the same year, two Boeing 767-300ERs and a Boeing 767-200, on lease from AWAS and Royal Brunei Airlines, respectively, were returned to the lessors, but in early 1997 another Boeing 767-300ER was phased in on a one-year lease from AWAS.

With its freedom to operate Western-built aircraft, Vietnam Airlines considered the acquisition of long-haul aircraft to better service Vietnamese living overseas.

The Airbus A340, Boeing 747 and the McDonnell Douglas MD-11 were topics of discussion. Meanwhile, two Fokker 70s were acquired in May and July to replace the twelve Tupolev Tu-134s.

On 3 September 1997, the crash of a Tupolev Tu-134B, on approach to Phnom Penh's Pochentong Airport in bad weather, resulted in more than 60 fatalities.

A new livery was introduced in early 1998, initially unveiled on a Boeing 767. In December 2001, Vietnam Airlines signed a historic agreement with Boeing for the acquisition of its first ever US-built aircraft, signalling the start of trade under the Bilateral Trade Agreement between the two countries.

The deal involved four Boeing 777-200ERs. The transaction was valued at US$680 million; the first aircraft was initially scheduled for delivery in 2003.

These four aircraft, along with six others of the same type that are leased from International Lease Finance Corporation (ILFC), are the flagships of the airline, and serve on medium and long-haul routes, respectively.

During that year, the airline carried 3.4 million passengers, 1.9 million of whom were on domestic flights, flights to Beijing resumed and services to Kunming were launched.

During 2002, Vietnam Airlines considered a lease offer from Airbus for two Airbus A340-300s. On 4 September 2003, a landmark ceremony celebrated the airline's receipt of its first Boeing 777-200ER purchased outright from Boeing.

On 28 October, the airline decided to move its operations in Moscow from Sheremetyevo International Airport to Domodedovo International Airport.

In June 2005, Vietnam Airlines ordered four Boeing 787-8s.Twelve additional 787-8s were ordered in late 2007, some of them to be directly acquired from the company, and the rest to be purchased by the carrier's subsidiary Vietnam Aircraft Leasing Company (VALC).

These new aircraft were to allow Vietnam Airlines to expand its network and replace some leased aircraft. Regarding the delays from Boeing, CEO Pham Ngoc Minh remarked in September 2009, said we are not happy about the constant delays.

It affects our business plan. We expected to get our planes in 2009, then 2010, and now nobody can confirm to us which is the exact delivery date. I can be patient but it gives us a lot of headaches.

In 2010 the airline switched its Boeing 787 order from the –8 to the –9 model, stating that 787-8s did not meet all the requirements Boeing initially promised; it is expected the airline will receive its first aircraft of the type in 2015.

On 20 June 2005, the airline launched direct services to Frankfurt after having discontinued services to Berlin.

It came after the 2004–2005 period when travel between the two countries soared 70%. The following year, Vietnam Airlines was admitted into IATA.As part of the move, Vietnam Airlines had to meet the association's IOSA safety standards.

The Vietnamese government planned to partly privatize Vietnam Airlines. In the plan, the government considered selling 20–30% of the airline's stake to outsiders, with the government holding the balance.

This was a small part of a bigger proposal by the government to privatize its state-owned companies, due to be completed by 2010. Vietnam authorized the plan the following year.

However, the plan was not carried out as the airline missed its deadline scheduled by the government, which was arranged for 2010, due to the Global Financial Crisis.

On 1 October 2007, the airline and VALC signed a memorandum of understanding for the purchase of ten Airbus A350 XWBs, and 20 additional Airbus A321s.The Airbus A350s supplemented the Boeing 787s already ordered by the airline.

This single order would result in Vietnam Airlines becoming one of the largest Airbus operators in Asia. The two companies also ordered five extra ATR 72-500s in December 2007.

Vietnam was chosen as the host of Miss World's 60th contest in 2008. As the country's national airline, Vietnam Airlines was selected as the sponsoring airline for the beauty pageant.

Therefore, it was tasked the job of managing all the transport matters for the contest, to be carried out during September and October, just before the beginning of the competition.

However, it was later decided to carry out the event in Sanya, China, following speculations of Vietnam withdrawing. In August 2008, Vietnam Airlines added Nagoya, the airline's fourth point served in Japan besides Fukuoka, Osaka and Tokyo, to the route network.

In 2009, Vietnam Airlines and the Government of Cambodia established a joint-venture, having 49% and 51% stockholding, respectively,with the goal of boosting tourism in Cambodia.

The joint-venture was a new Cambodian national airline named Cambodia Angkor Air, which started flying in July the same year, using ATR-72 aircraft;an Airbus A321 joined the fleet in September.

In 2009, the carrier signed a deal for another 16 Airbus A321s plus two Airbus A350s, during the Paris Air Show.

In addition, Vietnam Airlines launched a new bilingual website in October to simplify bookings and adopted a new passenger service system designed by IT provider Sabre Airline Solutions.

On 26 August 2010, the airline teamed up with Boeing during the unveiling of its interior modernization programme to increase passenger comfort.

From late September to early October, Vietnam Airlines discounted up to 85% of its 90,000 fares to celebrate Thang Long-Hanoi's 1000th anniversary.

In November 2010, the airline awarded Honeywell a US$100 million contract to retrofit the Airbus A321s' aircraft flight systems, which is calculated to save Vietnam Airlines US$10,000 per aircraft per year.

In February 2012, Vietnam Airlines boosted its stake in the low-cost carrier Jetstar Pacific Airlines to 70%, with Qantas holding the balance.

The Vietnamese flag carrier was the major shareholder in Vietnam's second largest airline, but its stake had been transferred to the Ministry of Finance, and subsequently to the Vietnamese State Capital Investment Corporation (SCIC).

The carrier's takeover of SCIC's stake in Jetstar Pacific will capitalise the low-cost carrier with US$27 million, an amount that will be directed towards fleet renewal.

In late April 2012, the aircraft lessor ALC announced the placement of an order for eight Boeing 787-9s, which would be leased to Vietnam Airlines, deliveries were expected to start in 2017.

In late May 2012, the carrier signed an agreement with Vietnam's Exim Bank for a loan worth US$100 million, which the carrier will use to finance the acquisition of four Airbus A321s; a further US$100 million was loaned in April 2013 to finance the purchase of eight Boeing 787s.

In a deal valued at US$1.7 billion, Vietnam Airlines signed a contract with General Electric in October 2013 for 40 engines to power the Boeing 787 aircraft the airline had on order.

In July 2014, a new route to Tokyo-Haneda from Hanoi was introduced. Vietnam Airlines received its first Airbus A350-900 in late June 2015, becoming the second operator of the type worldwide after Qatar Airways.

In August 2015, the airline's first Boeing 787-9 entered the fleet.

As it is expected to be operating 170 aircraft in 2020, Vietnam Airlines is aiming to become the second-largest full-service carrier in Southeast Asia.

The airline is interested in launching services to the United States, where more than 1.2 million Vietnamese reside.

Such plans were confirmed in December 2003, but have since been postponed because Vietnam is not yet part of Federal Aviation Administration's International Aviation Safety Assessment Program.

Vietnam Airlines also considered opening new routes such as Ho Chi Minh City/Hanoi, Vietnam–London; Ho Chi Minh City/Hanoi–Shanghai/Beijing, China; Ho Chi Minh City–Mumbai; Ho Chi Minh City–Brisbane; and Ho Chi Minh City–Doha.

While the airline had launched flights to London-Gatwick,Beijing and Shanghai, as of April 2018 there are no flights to Mumbai, Doha, and Brisbane.

The airline also plans to re-open flights to Berlin, and commence flights to Adelaide, Perth, Amsterdam, Milan, Prague, Mandalay, Dalian, Nanjing, Hangzhou and African cities; by 2020, Vietnam Airlines is expected to serve 53 international destinations, up from 27 in 2011.

By 2020, Vietnam Airlines plans to increase its annual revenue to US$7 billion – up from $1.86 billion in 2010 – by carrying 620,000 tonnes of cargo and 35 million passengers, using a fleet of 163 aircraft - later revised to 41 million passengers using 170 aircraft.

It aims to capture a 45% market share of Vietnam's aviation market. During its first 15 years of operation, from 1996 to 2010, Vietnam Airlines carried a total of 82 million passengers on 678,550 flights.

In addition, Vietnam Airlines plans to transfer most of its international operations from its current hub, Tan Son Nhat International Airport, to the proposed Long Thanh International Airport.

With a cost of approximately US$6 billion, the airport will, according to Vietnamese authorities, help Vietnam Airlines boost its operations internationally as it seeks to bypass Thailand as the dominant gateway to the Greater Mekong region.

London operations were transferred from Gatwick to Heathrow in 2015; the airline plans to operate its new Boeing 787-9 aircraft to this destination, starting from July 2015.

In January 2011, plans were announced by the airline to re-initiate an initial public offering (IPO) by the end of 2012; an earlier attempt was stalled by the 2007–2010 financial crisis.

Scheduled for mid-2014 after several delays, the IPO and subsequent share-offerings will supply the funds to expand Vietnam Airlines' fleet and network.

With the company valued at US$1.5 billion, the government plans to initially keep 75% of the shares. The IPO plan was submitted to the Vietnamese Ministry of Transport in June 2014.

Scheduled to commence on 14 November 2014, the IPO has already received two submissions from foreign companies, yet their names have not been disclosed.

The corporation will be restructured by 2015 to bring it in line with other state-owned enterprises and to shift its focus away from non-core businesses.

Following restructuring, the airline group will consist of Vietnam Airlines itself, as well as three carriers; in total, the corporation will comprise 26 independently audited companies.

Vietnam Airlines Company Limited is a limited liability company wholly owned by the government of Vietnam, having been restructured from Vietnam Airlines Corporation in June 2010.

Its role is to provide economic gains to the country, as its tasks, in addition to scheduled passenger and cargo transport.

This include responsibility towards labor, contribution to the state budget, and providing chartered flights, according to former CEO Dao Manh Nhung.

The airline is headed and overseen by a seven-seat management team, members of which are selected by the Prime Minister of Vietnam.As of July 2015, Pham Viet Thanh was the chairman of the company, whereas Pham Ngoc Minh was the President and CEO, as of March 2014.

As of March 2014, the airline branch of the corporation had 10,929 employees. The airline is headquartered in the Long Bien District of Hanoi; previously it was headquartered at Gia Lam Airport in Gia Lam, Hanoi.

In 2009, the airline, Airbus and ESMA Aviation Academy created Bay Viet Flight Training Company to train pilots in the country, with the expectation that up to 100 trainees would graduate annually.

In October 2010, the company planned to train 60 pilots in Vietnam during 2011–2012. In 2010, Vietnam Airlines needed 636 pilots, 60% of whom were Vietnamese.

It planned to raise that figure it to 75% by 2015, meaning there would be at least 100 new recruits each year from 2010 until 2015. Vietnam Airlines also contracts CAE Global Academy Phoenix in Arizona, United States, to train its cadets.

Vietnam Airlines has enjoyed an average of 37% increase in passengers flown per year until 1997, when the Asian Financial Crisis and other contributing causes led to a loss in profits for the airline.

Nevertheless, the airline remained profitable throughout the crisis. In 1996, the airline carried 2.5 million passengers, up 18% from 1995.

The airline carried more than 4 million passengers in 2002, which is an 18% increase over the previous year. Its cargo traffic also climbed 20% during the same period, resulting in a 2002 profit of US$35.77 million.

Despite the severe acute respiratory syndrome (SARS) outbreak, the airline posted a US$26.2 million profit for 2003. In 2006, it carried 6.8 million passengers 3.7 million international and earned revenue of nearly US$1.37 billion in first 11 months.

Vietnam Airlines carried more than 9 million passengers, of which 4 million were international travellers in 2007, the year which saw the airline earning a gross profit of US$23 million from a revenue of US$1.23 billion.

It also transported 115,100 tonnes of cargo. In 2009, the airline's revenue was US$1.3 billion, compared to US$1.56 billion it earned the previous year.

During this period, Vietnam Airlines carried 9.3 million passengers. Vietnam Airlines' passenger capacity for 2010 rose 30% over the same period of the previous year.

This also coincided with the increase in capacity at Vietnamese airports, at 21%. In 2012, the company's total revenue totalled US$2.4 billion, with profits totalling US$3.3 million. The following year, the carrier posted a US$25 million gross profit.

Vietnam Airlines held about 40% of the market share of international passengers flying to and from Vietnam in February 2012.

At the time, Vietnam Airlines controlled 77% share of the domestic aviation market, with 14% covered by Jetstar Pacific. As of December 2012, Vietnam Airlines controlled just below 70% of the domestic market share.

Vietnam Airlines has at least 20 subsidiaries and affiliates. By the end of its restructuring in 2015, the company will have offloaded its stakes in more than 10 enterprises.

- Vietnam Air Service Company

- Vietnam Airlines Engineering Company

- Vietnam Airlines Caterers

- Noibai Catering Services

- Jetstar Pacific Airlines

- Cambodia Angkor Air

- Vietnam Air Leasing Company

Vietnam Airlines is increasingly becoming involved in the maintenance, overhauling, and production of aircraft.

Maintenance works are carried out by Vietnam Airlines Engineering Company (VAECO), that was established on 1 January 2009.

VAECO was organized mainly upon the amalgamation of the A75 and A76 aircraft maintenance bases. VAECO carries out maintenance and technical services for Vietnam Airlines as well as for other airlines.

The establishment of this company opens a new era to the aircraft maintenance field in Vietnam. As of 2013, VAECO was capable of performing a wide range of maintenance on many different aircraft types.

This includes C-checks for the Boeing 777, Airbus A330, Airbus A320 and Airbus A321; and D-checks, the most thorough of all maintenance procedures, which are carried out on the ATR 72 and Fokker 70.

In addition to its self maintenance facilities, Vietnam Airlines also has maintenance contracts with other airlines and maintenance organisations.

There are currently no production facilities in Vietnam for aircraft and spare parts. However, Boeing has managed to obtain 35% of the distribution market in Vietnam, and GE Aviation, in turn, supplies jet engines for the Boeing aircraft.

For the future, conversely, Vietnam Airlines is planning to build a maintenance factory in conjunction with Rolls Royce and other companies.

It has also signed a memorandum of understanding with EADS, a pan-European aerospace and defence corporation, that would let the corporation assemble and manufacture plane components in the future.

Vietnam Airlines has a network within East Asia, Southeast Asia, Europe and Oceania. With about 300 daily flights, the airline flies to 21 destinations domestically, and to 43 internationally.

In addition, it has codeshare agreements with a number of airlines for other routes, some of which span to North America.

Vietnam Airlines have traditionally increased flights among Vietnamese cities to cater for the heavy demands brought by the annual Tet celebration.

This busy period, which could fall anywhere from late January to mid-February, is Vietnam's most important celebration.

Hundreds of extra flights are scheduled by domestic airlines during this period to allow Vietnamese to return to their families, often in rural areas, to celebrate the occasion.

In 2010, the airline increased its seat capacity from 45% to 120% on certain domestic routes. In 2011, it increased additional flights on ten routes, adding more than 100,000 seats.

About 63,000 of these seats were between Hanoi and Ho Chi Minh City. This represented a remarkable 41% increase against normal days.

In 2013, the carrier added an extra 174,000 seats during the celebratory period, of which 82,000 seats were on the trunk route between its primary hubs.

Vietnam Airlines joined SkyTeam on 10 June 2010.

Vietnam Airlines had codeshare agreements with these airlines:

- Kenya Airways

- KLM

- Korean Air

- Lao Airlines

- Philippine Airlines

- Qantas

- Air Europa

- Air France

- Alitalia

- All Nippon Airways

- Cambodia Angkor Air

- Cathay Pacific

- China Airlines

- China Eastern Airlines

- China Southern Airlines

- Czech Airlines

- Delta Air Lines

- Etihad Airways

- Finnair

- Garuda Indonesia

- Jet Airways

- Jetstar Pacific


Vietnam Airlines Fleet:

Vietnam Airlines operates the following aircraft:

Airbus A321-200 - 57

Airbus A350-900 - 10

Boeing 787-9 - 11

New Orders:

Boeing 787-10 - 8

Airbus A350-900 - 16

Airbus A321neo - 18

On selected flights, Vietnam Airlines offers audio video on demand (AVOD) in-flight entertainment via personal televisions. Entertainment options consist of films, games, TV programmes and music.

Vietnam Airlines offers two in-flight magazines, Heritage and Heritage Fashion, in addition to other reading material.

Business class is the highest of three cabin classes offered by the airline. As is the case with business class cabins in most airlines, the amenities offered in this class are substantially different from economy class, and more services and products are available.

On Boeing 777s, business class seats have a 160 cm (62 in) of leg room, and are able to recline with a pitch of 157°, depending on aircraft.

Laid out in a 2–3–2 configuration, each seat is equipped with lumbar support and a 10.4 in (26 cm) personal touch screen, capable of delivering AVOD. Hot meals are offered on flights lasting longer than two hours.

Deluxe Economy class, Vietnam Airlines' equivalent of premium economy, has a wider seat width and legroom compared to Economy with 36–38 in (91–97 cm) of seat pitch and 7 inches of recline, and is laid out 3–3–3.

This class is offered only on flights operated by Boeing 777, Airbus 350-900 and Boeing 787-9. On flights over 90 minutes, snacks are served; on two-hour plus flights, as in business class, hot meals are served.

Economy class is available on all flights operated by Vietnam Airlines. Seats in this cabin feature seats ranging from 51 cm (20 in) (Airbus A330) to 53 cm (20.9 in) (Boeing 777) in width.

Seat pitch on this cabin class is 31–32 in (79–81 cm), while seat recline ranges from 6 to 13°(5-6 inches). Like Deluxe Economy, snacks are served on flights over 90 minutes, with hot meals available on flights that are two hours or more.

According to Aviation Safety Network, Vietnam Airlines experienced six accidents/incidents since 1951, with two of them leading to fatalities.

Both deadly accidents occurred on final approach, and both involved Soviet-built aircraft. The deadliest one took place on 3 September 1997, when a Tupolev Tu-134B-3 crashed after hitting trees on approach to Phnom Penh International Airport, the death toll rose to 65.

The other fatal accident occurred on 14 November 1992, when a Yakovlev Yak-40 crashed on approach to Nha Trang Airport, killing 30 of 31 occupants aboard.

The airline has also experienced a hijacking episode in 1992, without any recorded fatality.


Tourism Observer

UNITED KINGDOM: BAA Training For 650 New Pilots

BAA Training, one of the largest aviation training centres in Northern Europe, announces that more than 650 future pilots will enrol on BAA Training’s Ab Initio programmes until the end of 2021.

Recently, BAA Training has launched five new cadet programmes. Partnership agreements to support future talents were signed with Wizz Air, Lao Skyway, Small Planet Airlines, SmartLynx Airlines and Vietnam Airlines.

The list of partners is expected to extend to at least three more as contracts are about to-be-singed soon.

In 2017, the number of students at BAA Training has increased sharply: those enrolling on Ab Initio programmes almost doubled compared to the previous year.

To respond to the increasing demand and growing capacities, we have started delivering practical training at two more locations in Lithuania.

In addition to S. Darius and S. Girenas aerodrome in Kaunas, we provide flight training at Istra and Kyviskes aerodromes located in Panevezys and Vilnius,” comments Egle Vaitkeviciute, CEO of BAA Training.

BAA Training has developed and implemented new standardization, as well as training programmes for instructors.

This novelty assists us in meeting the record-high training demand. Keeping high training standards is our top priority even during times like now, when the demand for flight training is at absolute peak,” adds E. Vaitkeviciute.

Despite the current record figures, the numbers are expected to elevate even stronger in a five-year period.

E. Vaitkeviciute explains that cadet programmes are becoming increasingly popular among carriers because of more flexible training solutions and possibility to select strong, as well as motivated candidates.

Moreover, students willing to become pilots perceive these programmes as an opportunity to enter aviation job market with more ease: in case training is successful, cadet programmes translate into the guaranteed workplace.

BAA Training plays an important role by ensuring both parties receive services that meet expectations.

We are further strengthening our capabilities across cadet programmes by closely cooperating with our clients. The requirements for quality and more advanced training solutions are increasing, therefore, we regularly collect feedback and improve quality, as well as scope of services provided for both airlines and future pilots. We constantly adapt training programmes to the individual needs of both,” marks E. Vaitkeviciute.

Currently, BAA Training offers a total of 11 different Ab Initio training programmes. Three of which are customized cadet programmes that regularly take place when new group of international students is formed.



Tourism Observer

VIETNAM: Government To Cut Its Shareholding In Vietnam Airlines

The Vietnamese government has announced plans to reduce its shareholding in Vietnam Airlines (VN, Hanoi) by 2019.

Having gone public in 2014, the government retained a stake of 86.16% in the carrier through the Ministry of Transport with ANA Holdings acquiring an 8.77% stake in 2016. At present, Techcombank holds 2.08%, Vietcombank 1.83%, with the remaining 1.16% held by a variety of investors.

However, according to a divestment list proposed by the Ministry of Planning and Investment this week, government is looking to whittle down its shareholding in Vietnam Airlines by 51% to just 35.16% by 2019.

In its latest 1H17 financials, Vietnam Airlines reported a 6.1% year-on-year increase in passenger numbers to 9.95 million for the first six months of the current calendar year.

Group revenue was estimated at VND42.8 billion (USD1.9 billion), including VND31.5 billion (USD1.4 billion) at Vietnam Airlines’ mainline operation.

Group pre-tax profit was estimated at VND830 billion (USD36.5 million), including VND550 billion (USD24.2 million) at Vietnam Airlines.

The move is part of Hanoi’s drive to raise additional funds for its national investment plan covering the period 2016-20, and to advance the restructuring of state-owned enterprises.

According to the Vietnam News Agency (VNA), the State will divest from 135 businesses this year, 181 in 2018, sixty-two in 2019 and twenty-eight in 2020. The total face value of its divestments from 2017 to 2020 is estimated at VND64.46 trillion dong (USD2.82 billion).



Tourism Observer

VIETNAM: Mountainous Homestay Tourism

When it comes to homestay tourism in Vietnam, one may think of the northwestern region. However, in the central province of Thanh Hoa, more attention has been paid to developing this service.

Don village in the mountainous district of Ba Thuoc in Thanh Hoa province has now become one of the emerging travel destinations with its homestay service for visitors who wish to explore the local life.

Besides a pure atmosphere, visitors can explore unique cultural characteristics of local ethnic people. The tourism service is rated ‘good’ by visitors. However, since it is a new type of tourism service in the locality, infrastructure serving the service remains limited.

Ba Thuoc district has recently mapped out a specific plan to develop homestay service in Don village and some other villages, considering tourism to be its spearhead sector in the coming time.

Along with investment in infrastructure, the protection of the rural landscape and the environment is regarded as key to developing homestay tourism in the locality.

A Space for Community Culture was launched at the central city’s East Sea Park yesterday, attracting the participation of 80 pavilions including souvenirs, food courts and folk games.

The city’s tourism department said the space will last through to the end of this month in order to serve booming tourism in Sơn Trà Peninsula.

As scheduled, the space will open from 9am till 10pm each day from May 19 to May 31st.

Tourists can sample traditional cuisine and purchase made-in-Đà Nẵng gifts including stone sculptures, organic cosmetics, bamboo crafts, and carved shells.

According to the department, a bartending competition will take place with the participation of competitors from Hue, Hoi An, Nha Trang and Da Nang.

Live music performances will be on every night, while food courts will serve locals and tourists.

Mỹ Khê beach, one of the world’s most beautiful beaches, also boasts boat rides, as well as jet-ski and kayak rentals.

The Vietnam Tourism Association has proposed to continue visa exemptions for Western European tourists to boost tourism.

According to the Vietnam Tourism Association, in order to implement the government's resolution to turn tourism into Vietnam's key sector, visa exemptions should be continued for visitors from major tourist markets.

The association said they had received requests from tourism firms and local tourism associations to continue visa exemptions for tourists from France, Germany, Spain, Italy, Belarus and the UK for five years.

They also suggested exempting visas for visitors from India, Australia, Canada, and countries in Eastern Europe including Poland, Czech, Bulgaria and Hungary, as well as former Soviet countries.

Vu The Binh, the association's vice chairman, said it was competitive as neighbouring countries all have open visa policies.

"Expanding visa exemptions is a common trend.

Thailand exempts visa for tourists from 61 countries, Malaysia exempts visa for 155 countries and in Singapore, it's 158. Meanwhile, we have only exempted visa for 22 countries," he said.

Tourism firms said since the visa exemption programme only lasted for one year, they didn't dare spend too much on promotion.

Normally, their short-term plans last from three to five years and over five years for long-term plans. The one-year visa exemption has only attracted independent tourists as firms await a more stable policy.

Tran Thi Viet Huong from Vietravel said most European tourists plan their vacations six months to a year in advance while the programme would end this June. This will affect their decision-making about holidays next year.

Le Tuan Anh, Deputy Director of the International Co-operation Department of the Vietnam National Administration of Tourism said they had suggested extended the programme to five years and raise the standard length of stay for tourist visas from 15 to 30 days during meetings with other agencies.

"Resolution 8 on developing tourism states that pilot programmes can be carried out for urgent matters that don't have their own regulations yet. This suits the tourism sector which includes many other sectors. Thanks to it that the e-visa programme was piloted quickly in February," Anh said.

The number of visitors from Europe dramatically increased after the visa exemption was introduced. In the first quarter, the number of visitors from France, Germany, Spain, Italy and the UK reached 240,000, an increase of 12% compared to same period last year.

The growth rates from Spain were 23%, 13% from Italy, 13% from Germany, 11% from France and 9% from the UK.

Vu The Binh, the Vietnam Tourism Association's vice chairman, emphasised that the e-visa was different programme and they still needed to expand the visa exemption programme.

CAMBODIA: Laos And Cambodia Sign Aviation Cooperation Agreement

Laos and Cambodia on Monday signed a document agreeing on the need to increase flights between them to meet the growing demand for air transport.

The head of the air transport division in the Department of Civil Aviation, Viengsay Singkham, yesterday said the minute of a meeting between aviation officials from the two countries was signed in Cambodia following the meeting.

The document aims to amend the Aviation Cooperation Agreement between Laos and Cambodia to help regional airlines increase flights between both countries in a bid to promote tourism and economic development.

Officials from both sides will submit the outcomes of the meeting to their higher authorities and proceed with the next steps to amend the agreement.

The director for Air Transport at Cambodia’s State Secretariat of Civil Aviation, Vann Chanty, said that the move will push airlines in both countries to operate more flights between Cambodia and Laos due to increasing demand from tourists.

“We need to update the agreement to comply with reality and the demands of the market,” Chanty was quoted as saying.

There are three airlines offering flights between Laos and Cambodia: Cambodia Angkor Air, Lao Airlines and Vietnam Airlines; they operate 21 flights a week.

Chanty said the passenger load between the two countries increased by 5 per cent last year to 178,000 and he believed the figure would hit 200,000 in the next two years.

Director-general of the State Secretariat of Civil Aviation, Keo Sivorn, said the new agreement would make it easier for airlines to have direct flights between Cambodia and Laos and would open up new routes, such as from Phnom Penh and Preah Sihanouk to Vientiane or Luang Prabang.

Lao and Cambodian officials say that increasing transport connectivity will boost tourism growth in both countries .

VIETNAM: Vietnam Airlines Launches Boeing 787-9 Dreamliner On Sydney Route

Vietnam Airlines on Friday officially launched new-generation Boeing 787-9 Dreamliner on its flights between Vietnam and Australia’s Sydney. Vietnam News Agency (VNA) reports that the aircraft will be used for flights between Vietnam and Melbourne from Dec 5.

This is a highlight event of the national flag carrier to mark the 20th anniversary of the direct air route between Vietnam and Australia, constituting its efforts to provide four-star services to customers, especially Overseas Vietnamese in the country. According to Tran Ngoc Hung, head of the Vietnam Airlines Representative Office in Australia and New Zealand, the airline is operating direct flights between Sydney and Melbourne and Ho Chi Minh City, which account for about 70 per cent of passengers on the route.

The flights aim to serve the Vietnamese community in Australia, mostly in Sydney and Melbourne, as well as an increasing number of visitors from the country to Vietnam and other countries in the region, said Hung. Vietnam Airlines is also seeking measures to serve more passengers who transit in Australia to other countries, especially to the UK, France and Japan, added Hung.

Vietnam Airlines is the first airline in the Asia-Pacific region that uses Boeing 787-9 Dreamliner and Airbus A350-900 XWB, the most modern generation aircraft in the world so far. Dreamliner is a super effective commercial airplane with optimal speed. It helps save 2-25 percent of fuel, while reducing 20-25 per cent of emission compared to other types. Vietnam Airlines has booked 19 dreamliner aircraft, which were scheduled for delivery between 2015 and 2019.

Thus far, the fleet of Boeing 787s of Vietnam Airlines has flown 7,600 flights with more than 35,500 flying hours, transporting 1.79 million passengers.

VIETNAM: Struggling With Erosion Of Beaches And Tourism

As dusk falls on this landmark Vietnamese beach, Hung Hoa is about to close her seafood restaurant. It is only six o’clock.

“Nobody is coming here anyway,” sighs Mrs. Hung. Her restaurant has 10 dining tables; even though it is supper time, all of them are empty.

Once a popular tourist destination, Cua Dai beach is now a deserted place. Not far from Hung’s restaurant looms an abandoned lifeguard tower. There is no music to be heard and you rarely come across visitors. Instead, you see huge sandbags piled everywhere against the sea.

The desolation dates from 2014, Hung explains, when a powerful typhoon hit Vietnam. Giant waves driven by strong winds swallowed a big chunk of Cua Dai beach, and many coconut trees fell into the sea. Since then, Hung, like many restaurant owners here, has seen her business decline.

Such stories have become much more common in Vietnam in recent years as natural disasters seemingly caused by climate change take an increasing toll on tourism, one of the country’s major industries.

Vietnam is no stranger to typhoons and flooding. But a changing climate is making things even worse. A 2010 World Bank report warned that the country is experiencing longer typhoon and flood seasons and that “storms are tracking into new coastal areas.”

More frequent extreme weather events are not only dissuading foreign visitors, they are threatening the existence of the attractions they might come to see. A record flood in 2009, for instance, submerged the entire ancient town of Hoi An including its iconic Japanese bridge. Only a huge effort saved the 300-year-old wooden structure.

At stake also is natural beauty. Ca Mau Cape, Vietnam’s southernmost point and a paradise for bird watchers, is now being gradually washed away by fierce tides and rising sea levels.

And on current trends, things will only get worse. By the end of the century, rising seas are expected to encroach on one-third of the country’s national parks and nearly one quarter of its key biodiversity areas, according to a report published in 2014 by the World Tourism Organization.

And that is bound to have an impact on tourism, officials worry.

“Rising sea levels could engulf beaches and other natural resources in coastal areas, damage cultural destinations, and flood tourism infrastructure, costing businesses enormous amounts of time and money,” warned Dang Thi Bich Lien, deputy minister for Culture, Sports and Tourism, at a recent conference.

The economic sectors on which the Vietnamese have traditionally depended, such as fisheries and agriculture, have already suffered from climate change. Over the past few months, the worst drought in 90 years has dried up rice paddies and shrimp ponds in the Mekong Delta – the source of 90 percent of the country’s rice exports and 60 percent of shrimp and fish exports.

Although it's hard for scientists to say how much climate change may be affecting the intensity of storms, the International Panel on Climate Change voices "high confidence" of climate effects including "submergence, coastal flooding, and coastal erosion."

Vietnam's government is counting on tourism to help boost the economy. Last year, tens of millions of international and domestic travelers contributed nearly 7 percent of Vietnam’s economic output. The government expects this figure to hit 10 percent by 2020. But what happened to Cua Dai beach and other tourist destinations casts a shadow over such ambitions.

Twenty minutes drive from the ancient town of Hoi An, a United Nations-designated World Heritage site, Cua Dai beach was once a must-see for beach lovers. Locals still remember a white sandy beach stretching a hundred meters into the sea, covered with colorful clusters of wild flowers and coconut trees. But now, all that stands between the waves and buildings is a tiny beach, in some places no beach at all.

While coastal erosion is part of natural shoreline movement, experts say the damage to Cua Dai beach has been accelerated by rapid development and extreme weather events.

“In 2014, the beach seemed to disappear overnight,” recalls Mr. Nguyen, an official of Hoi An’s Protection Management Board who only gave his surname. “It was during a typhoon. When people woke up in the morning, they found the beach was no longer there.”

With the beach shrinking, tourism businesses along the coast are beginning to feel the pinch. Those hotels still in business have found it increasingly challenging to satisfy guests.

“People come here for the beach,” says Cao Thi Phi Yen, a client relations manager at Golden Sands Resort and Spa, a luxury hotel in Cua Dai beach. “If they don’t see a nice beach, they will complain. We have had a lot of complaints,” she says.

To protect what remains of the beach, Golden Sands and other hotels have invested heavily in dyke construction. Walking along Cua Dai is like visiting a beach-restoration technology exhibition, with solutions ranging from concrete levees to stone seawalls to wave breakers resembling shipping containers, woven from synthetic fibers and packed with dredged sand.

Although these measures have kept the hotels safe, “this is a temporary solution,” says Nguyen Trung Viet, director of the Central Region College of Technology, Economics and Water Resources in Hoi An. Simply building a dyke in one place won’t stop erosion but will drive the problem elsewhere, he says.

“This local countermeasure may affect or harm other regions,” such as An Bang, a nearby beach where tourism is now flourishing, he warns.

Officials in Hoi An are searching for a long-term solution, but that will take time and they lack the needed technical know-how to solve the problem, they complain. And even if their efforts do prevent future erosion, that might have come too late for some businesses.

Hung, the seafood restaurant owner in Cua Dai, has seen her business make bigger losses each year since the destructive 2014 typhoon. Once she employed 10 people; now she is down to four.

“I used to have many customers, but now I would be very happy if I could have one customer each day,” Hung says. “Today, I sold food worth only $10. This is still considered good. Other restaurants didn’t sell anything.”

VIETNAM: Travel And Tourism Competitiveness

Breakthroughs are needed in terms of policies and mechanisms to make Việt Nam’s tourism industry competitive in ASEAN, an expert from the Institute for Tourism Development Research has said.

A lack of comprehensive development strategies has made Việt Nam a less competitive travel destination and lag behind other ASEAN member countries, Nguyễn Anh Tuấn, director of the Institute for Tourism Development Research, said.

The tourism sector does not get adequate investment to fully tap its potential or enhance its competitiveness globally or in the region, Tuan told a seminar held in HCM City yesterday to review the country’s tourism industry.

Inappropriate investment in market research, marketing strategies and activities to promote destinations have caused Viet Nam to lose its competitiveness in foreign markets, he said.

The country has seen an increase in international arrivals partly due to its low prices and natural and cultural attractions, he added.

A recent survey by the institute found that tourists travel to Việt Nam to explore its rich culture and history.

While its friendly people, natural landscapes and unique cuisine are other factors that attract tourists, poor food safety and hygiene and poor sanitation keep them away, the survey found.

Poor tourism products and entertainment activities are other factors that hinder tourism development.

Viet Nam ranked 75th out of 142 countries in the World Economic Forum’s 2015 Travel and Tourism Competitiveness Report.

Viet Nam has rich cultural resources (33rd), natural resources (40th) and world heritage natural sites (27th) and cultural sites (44th).

It remains a price-competitive destination (22nd) while its safety and security situation is stable (75th).

The country lags behind in environmental sustainability (132nd), prioritisation of travel and tourism (119th), tourist service infrastructure (105th), international openness (89th), ICT readiness (97th) and health and hygiene (83rd).

The Travel and Tourism Competitiveness Report ranks 141 countries based on 14 criteria: business environment, safety and security, health and hygiene, human resources and labour market, ICT readiness, prioritisation of travel and tourism, international openness, price competitiveness, environmental sustainability, air transport, infrastructure, ground and port infrastructure, tourist service infrastructure, natural resources, and cultural resources and business travel.

The number of foreign visitors to Việt Nam soared 25.4 per cent year-on-year to nine million in the first 11 months of this year.

It had set a full-year target of 8.5 million.

The tourism sector accounted for 6.6 per cent of gross domestic products last year.

VIETNAM: Flight Info Screens At Vietnam Airports Hacked

Screens displaying flight information and the public address system at Vietnam's two major airports were hacked with derogatory messages against Vietnam and the Philippines in their territorial row against China in the South China Sea.

After the hacking Friday evening, authorities switched off the screens and the sound systems at Hanoi's Noi Bai airport and the Tan Son Nhat airport in southern Ho Chi Minh City, the online VnExpress said.

The website of the national carrier, Vietnam Airlines, was also briefly hacked, it said.

The site quoted Vice Minister of Transport Nguyen Nhat as saying the incidents did not affect the security or air traffic control at the airports.

The messages and screenshots with derogatory remarks suggested they were purportedly left by Chinese hackers.

Earlier this month, an international tribunal issued a ruling in favor of the Philippines that invalidated China's sweeping claims in the South China Sea. Vietnam also has overlapping claims to parts of the sea, which is rich in natural resources, and together with the Philippines has been a vocal critic of China.

The hacking came after China this week condemned an incident in which a border agent at the Ho Chi Minh City airport allegedly defaced a Chinese passport after images showed the words "f--- you" scribbled twice over maps of the contested South China Sea.

Vietnam said it was investigating.

VIETNAM: Vietnam’s Aviation Market No Doing Well

According to a source of Dau Tu (Investment) Newspaper, Skyviet Aviation JSC will receive an air transportation business license and aviation business license for commercial purposes – the two most important legal items for an airline to take off.

“The file of application for the two licenses of Skyviet is valid and it meets the requirements on capital, aircraft and organizational structure,” said Vo Huy Cuong, Deputy Chief of the Civil Aviation Administration of Vietnam.

Skyviet may get the two licenses in mid 2016,after receiving a business registration certificate from the Department of Planning and Investment of Ho Chi Minh City.

In the structure of the VND300 billion charter capital of Skyviet, Vietnam Airlines contributed 51% with the assets currently managed by the Vietnam Air Services Company (VASCO), including spare parts of ATR72-500 aircraft, reserve engines of ATR72 aircraft (VND99.2 billion) and VND53.7 billion in cash.

The two remaining shareholders are TECHCOM Capital with 48% of the charter capital and Techcomdeveloper with 1% of charter capital. Both of them are subsidiaries of Techcombank.

It is not easy for “newcomers” to vie for market share when the three big names as Vietnam Airlines, Jetstar Pacific and VietJet are already planning to expand.

Established on the basis of inheriting and acquiring infrastructure and existing resources of VASCO, Skyviet can fly immediately after getting the licenses, with a fleet of 10 ATR72 aircraft.

This is also the reason that the process for getting licences for Skyviet was more favorable than the route of more than 2 years for the Vietstar Airlines Multirole Corporation (Vietstar Airlines).

The Ministry of Transport has recently asked the Prime Minister’s permission to grant an air transport license to Vietstar Airlines.

Vietstar was established in 2010 by the Air Defense Arm of the Ministry of Defense. The carrier was granted a general commercial aviation business licence in June 2011, providing air services for economic, social and tourism purposes, aircraft repair and maintenance and airport service.

The three major shareholders of Vietstar Airlines are the A41 Aircraft Repair Company, the VietStar Aviation JSC and Tin City Fast Delivery JSC.

According to audited financial statements by December 31, 2015, Vietstar had equity of VND652.7 billion (over $30 million) while the minimum capital for airlines with passenger and cargo transport services must be VND700 billion (nearly $35 million).

The Ministry of Transport recently had to hold a press briefing to clear up some questions around the granting of an aviation transport business licence for Vietstar Airlines.

Regarding reports that the company is said to lackan additional VND47.3 billion ($ 2.1 million) to reach the minimum capitalization of VND700 billion required for an airline, as per government Decree 30 issued in 2013, the ministry said the company’s audited financial report to December 31, 2015 showed owner’s capital has reached VND700 billion. However, as all the capital has been invested in the company’s operation and it has yet to earn any revenue, it is running a profit deficit of VND47.3 billion.

The ministry added that if the Prime Minister approves the licensing of Vietstar, the company will have six months to complete its papers.
Vietstar has committed to adding capital to meet the requirement if it receives the PM’s approval, the ministry said, stressing that the licence would only be issued when the business fulfills all requirements stipulated in Decree 30.

“Given the nature and scale of the fleet, the participation of the two new airlines will not affect the aviation market in the next 3-5 years,” said Lai Xuan Thanh, Head of the Civil Aviation Administration of Vietnam (CAAV).

In its business plan, Skyviet will continue to exploit the ATR72 aircraft to/from airports in the localities that cannot welcome narrow body jets (Con Dao, Ca Mau, Dien Bien, Kien Giang), with passenger transportation in the first 9 months of 2016 of only 465,659 people, Then it will increase to about 650,338 passengers in 2018.

It is expected that the new company will have profit right from the first year and it will increase gradually in the coming years. VASCO’s profit for the period 2016 – 2018 will be VND1.9 billion, mainly from advertising, selling souvenirs, charter and small aircraft services.

Meanwhile, in the first five years of operation, Vietstar Airlines plans to operate a fleet with only one Boeing 737 and an Airbus320 so its impact on the local aviation market will be modest.

Thanh said the key players in the domestic aviation market in the next 3-5 years will be Vietnam Airlines and VietJet Air.

According to the aviation transport planning of Vietnam from now to 2020 and the vision to 2030 submitted to the Ministry of Transport by the Civil Aviation Administration of Vietnam, in addition to the development of Vietnam Airlines as the core of the country’s air transport sector, the authorities will create favorable conditions for the development of VietJet, Jetstar Pacific, Vasco, and Vietstar Airlines. The CAAV proposed the Government to encourage the establishment and development of passenger-cargo and cargo air transport firms in Vietnam.

According to the CAAV, with the market of about 113 million passengers and 2.8 million tons of cargo in 2020, it is not easy for the “newcomers” to vie for market share when the three big names of Vietnam Airlines, Jetstar Pacific and VietJet plan to expand their fleets.

Statistics of the Civil Aviation Authority of Vietnam (CAAV) show that the country currently has eight airlines, including Vietnam Airlines, Jetstar Pacific Airlines, Vietnam Air Services Company (VASCO), VietJet Air, Blue Sky Travel, Event Company Ltd, Hai Au Airline JSC, and Green Planet Technology JSC.

SINGAPORE: Singapore Airlines Airbus A350 Delivery Flight

The Airbus A350 has only reached delivery stage for about 14 months, but since the first aircraft went to Qatar Airways just before Christmas 2014, new deliveries to new customers start to get a bit of a routine at Airbus.

After Qatar Airways, Vietnam Airlines, Finnair and TAM, Singapore Airlines (SIA) joined the exclusive club of A350 operators this week.

When aircraft number 16, MSN 026, A350-941 registered 9V-SMA, was handed over to Singapore Airlines (SIA) on Wednesday, the buzz was considerably less than before. Even more so in comparison to the last milestone delivery for SIA in Toulouse, the first-ever Airbus A380 in the fall of 2007. With the first A350 for the Asian quality carrier, it was almost a low-key event for Airbus and SIA standards.

Adding to that was that Airbus’ top brass was in China at the time, breaking ground for a new A330 completion center in Tianjn. So Didier Evrard , EVP Programmes at Airbus and former Head of the A350 Programme, was the master of ceremonies on the manufacturer’s side back in Toulouse. “Having SIA as a customer is the strongest possible endorsement of the A350”, remarked Evrard during the handover ceremony.

For SIA, the A350 is a truly new dimension. “In the last five years, we had very little expansion on long haul, we didn’t have the right aircraft with the right efficiency to expand in a commercially viable manner”, said SIA-CEO Goh Choon Phong.

“The A350 is a game changer for us because it is this particular aircraft offering us the right size, efficiency and cabin to add more capacity on long haul.” In fact, the A350 will open up a new route for SIA, from Singapore to Düsseldorf, Germany, in July this year. “That would have been difficult to serve for us without the A350”, adds Goh.

The A350s 253 seats (42 in Business Class, 24 in Premium Economy and 187 in Economy) are just about the perfect size to establish new routes off the trunk routes or add more frequencies with extra flights to existing destinations. The first long-haul route for the new aircraft in the SIA fleet will be the service to Amsterdam from May 9th, replacing a Boeing 777-300ER.

SIA is so far the biggest customer for the A350-900 with 67 firm orders for the base version. Interestingly, the airline will deploy the type on any kind of route – from regional runs within Asia to long haul to ultra long haul. SIA is the launch customer for a new version, the A350-900ULR. “Strategically, the ULR is very important to us, as the US is such an important market and we plan to re-establish non-stop service in 2018 from Singapore to New York, Los Angeles and one more city we will announce later”, says Goh.

SIA had pulled the 18-hour-plus non-stop services from Changi Airport to Newark and the slightly shorter LAX-service in 2013, with fuel prices so high and the utilized four-engine A340-500s so inefficient that it was no longer viable. So the A350-900 will be part of the SIA fleet in three different versions, besides the current 253-seat base version for long-haul. “It’s obvious the ULR will have less seats than regular A350s, and then we will have the regional version with more seats, we still have flexibility to adjust the number of each version we need according to demand.” Interestingly, as Airbus’s A350 spokesman Arnaud de la Croix pointed out in Toulouse, the ULR model can be reconfigured back to the base 900-version, in restricting some fuel tank capacity. Unlike other ULR aircraft, the A350-900ULR variant does not physically contain bigger or more fuel tanks, the ULR just makes maximum use of the existing capacity.

But this is still kind of far off in the future, the current priority is to introduce the A350 into SIA’s fleet. Here, it will replace up to 29 Boeing 777-200ERs and 32 A330-300s, all of the latter are leased. “We currently have about 40 pilot trained to fly the A350, all converting from the A330 due to the common type rating”, explains SIA’s A350 chief pilot Paul Ho to AirwaysNews.

“By year-end, when we will have eleven A350s delivered, we plan to have about 100 pilots to fly them.” Singapore being Singapore, a city state with famously strict rules, the Civil Aviation Authority had to pre-authorize guests on the delivery flight to even visit the cockpit, and even then, photos of the cockpit in flight were not allowed.

There were about 70 passengers on flight SQ8895 from Toulouse to Singapore, a small media contingent, staff on duty and employees who won the trip as a prize in an internal raffle. After checking-in at the Airbus Delivery Center, each passenger and crew member had to stand on a scale to be weighed together with all personal luggage. Interestingly, several male fliers observed, including the pilot, brought it to 106 kilograms each.

The aircraft’s luxurious Business Class cabin, in 1-2-1 configuration, but forcing passengers to sleep diagonally when in full-flat mode, was almost fully occupied. The product is similar to that in the latest Boeing 777-300ERs, with some small enhancements. SIA plans to totally revamp its First and Business Class offerings with delivery of five new A380s from the second half of 2017. The CEO wouldn’t say if the airline would keep the diagonal seating, which fairly many passengers dislike.

The new Premium Economy Class has proven to be a success for SIA, while reducing the number of Economy seats, effectively leaving the cheapest segment of the market more to the Gulf carriers. “We respond to what our customers tell us”, comments the CEO. SIA’s Premium Economy, with seats supplied by the same German manufacturer ZIM that equips Lufthansa, is quite luxurious in appearance and boasts 38 inches of pitch and inflight service including French champagne. Catering on the delivery flight however included bubbly in plastic cups for everybody, as well as two meal choices supplied by Airbus.

Nothing to write home about, but well presented. Apparently SIA did not want to make as much fuss as for example Qatar Airways does on delivery flights with guests, which includes a specially printed menu and an even higher class catering than what the Gulf carrier already offers on regular flights in Premium classes, often including caviar for all on board.

A cheery reception event attended by Singapore’s minister of transport rounded out the premiere of the next-generation Airbus to one of the manufacturer’s most faithful customers since the early days of the Airbus A300 in the late 1970s. Before scheduled long-haul services to Amsterdam start, passengers can experience the new aircraft on short-haul legs between Singapore and Kuala Lumpur and Singapore and Jakarta, flown to enable newly trained A350-pilots to accumulate enough cycles.

SINGAPORE: Singapore Airlines Gets First Airbus A350-900, To Fly To Amsterdam

After a near ten-year wait, Singapore Airlines (SIA) has taken delivery of its first Airbus A350-900, which CEO Goh Choon Phong said would be a "game changer" for the flag-carrier.

The latest addition to the fleet was received with a water-cannon salute at Changi Airport in Singapore, after a long journey from the Airbus delivery center in Toulouse, France.

"The addition of the A350-900 exemplifies Singapore Airlines' longstanding commitment to operate a young and modern fleet," Goh said.

"The A350 will be a game-changer for us, allowing for flights to more long-haul destinations on a non-stop basis, which will help us boost our network competitiveness and further develop the important Singapore hub."

Singapore's Coordinating Minister for Infrastructure and Minister for Transport, Mr Khaw Boon Wan, was a guest of honor for the arrival of the new aircraft.

The delivery marks the first step in the airline's major overhaul of its current fleet in the medium to long-haul range, in a bid to maintain its position as the standard-setting full service carrier in Asia.

The aircraft will be operated on Jakarta and Kuala Lumpur flights on a temporary basis while crew are trained on it, before being put to work on 13-hour flights to Amsterdam from May 9.

Singapore Airlines also plans to use the aircraft to add services to Dusseldorf, Germany, from July.

The airline will offer business, premium economy and economy class seats on the flights, as well as what Singapore Airlines' SVP for Marketing Planning Lee Wen Fen described as the world's most advanced in-flight entertainment system.

The carrier said the addition to its fleet would offer customers an improved travel experience, with new features including higher ceilings, larger windows and special ambient LED lighting that is designed to reduce jetlag and project "special effects" onto the ceiling of the plane.

Geoffrey Thomas said the A350 gave Singapore Airlines a big advantage over other regional carriers because it allowed it to compete with airlines that had the Boeing 787.

"The A350 is slightly larger than the 787 and is a true Boeing 777-200 replacement," he said.

"The A350 is a major leap forward over the Boeing 777 in economics and passenger comfort thanks to its composite structure and new technology engines."

Airbus claims the A350 has 25 percent better fuel consumption than its current aluminum long-range competitors, and that despite being 68 times more powerful than a F1 racing car, it's also one of the quietest in its class.

According to Singapore Airlines, the first batch of A350-900s for long-haul flights will seat 253 passengers across the three classes of seating.

Singapore Airlines is Airbus's biggest customer for the A350-900, having placed its first order for the aircraft in July 2006.
It now has 67 A350s on firm order, including seven of an ultra-long-range model that will be delivered in 2018 for use on non-stop services between Singapore and the U.S.

Singapore Airlines expects to take delivery of 11 A350-900s in the aircraft's first year of operation and has the option to purchase 20 additional A350s.

AirAsia X, Air China, Asiana Airlines, Japan Airlines, Thai Airways and Vietnam Airlines have also placed orders for the aircraft, while Asian rival Cathay Pacific is set to receive its first A350 "in the coming months" according to reports.

"The Asian market is extremely competitive with China emerging as a big threat to traditional dominant players such as Singapore Airlines and Cathay Pacific Airways," Thomas said.

"There is also long haul competition from the Middle East giants. Plus, recently old players such as U.S.-based United Airlines are dramatically up-gauging their product with 787s and offering new non-stops such as San Francisco to Singapore from June 1."

Collapsing oil prices and subsequent lower fuel expenses are providing a tailwind for the airline industry, and Singapore Airlines has also seen decent growth within its affiliate airlines, SilkAir and Scoot.

The company posted a 36 percent increase in third-quarter net profit to S$275 million ($197.4 million) in February, achieved mainly through lower fuel expenses and gains from the disposal of aircraft, however the profit gain was partially offset by almost S$150 million in losses due to hedging and currency fluctuations.

While other carriers have delayed the retirement of older aircraft and remain cautious on the demand outlook at a time of weak global economic growth, Goh said he was confident the efficiency of the new aircraft would enable Singapore Airlines to introduce more new destinations.

VIETNAM: Vietnam Airlines Recalls In-flight Magazine Over Shwedagon Pagoda-Related Controversy

The controversial cover of the November issue of the Vietnam Airlines-run Heritage Fashion magazine


The Vietnamese national flag carrier is pulling copies of the latest issue of an in-flight magazine from all of its planes, as the cover of the publication has purportedly drawn the ire of the Buddhist community in Myanmar.

The November edition of Vietnam Airlines-run Heritage Fashion features a model wearing ao dai on its cover, with what is said to be Myanmar’s renowned Shwedagon Pagoda printed on the traditional dress.

The ao dai is a national costume commonly worn by women with a tight-fitting silk tunic dressed over a pair of silk pants.


The pattern of the dress was pointed out by a Myanmarese monk, who posted nine photos of the controversial magazine on his Facebook account, named Venerable Nayaka, on Wednesday.

The monk said he was upset to see the sacred pagoda printed on a costume for women, an act he deemed offensive to the Myanmarese Buddhist followers.

He said the Shwedagon Pagoda-featuring ao dai has hurt the heart of the Myanmarese people, adding he would report the issue to the Vietnamese Embassy in Yangon as well as Vietnam Airlines agents in the Myanmarese capital.

The monk even used the F-word in his post, as seen by Tuoi Tre News early Friday, which provoked disapproval comments from some Vietnamese Facebook users.

The post and photos were shared across Facebook on Friday, but the Venerable Nayaka account appears to have been deactivated in the afternoon of the same day.

“This is an insult to Myanmar’s spiritual heritage,” said a Myanmarese passenger of Vietnam Airlines.

The Vietnamese flag carrier, however, had swiftly responded to the controversy, announcing that it would pull all copies of the issue from its fleet.

“The recall is meant to limit the impact of different cultural views,” Le Truong Giang, editor-in-chief of the airline-run Heritage magazine, told Tuoi Tre (Youth) newspaper on Friday.

Giang also expressed his apology to the community, especially Myanmarese customers, for the incident.

Heritage Fashion is a supplement issue of Heritage, both of which are available for free on all Vietnam Airlines flights.

Its November edition was specifically designed to showcase custom-made Vietnamese “ao dai” that promote the country’s traditional culture and embody the beauty of Asian spiritual heritage, said a representative from the magazine.

The Shwedagon Pagoda-themed ao dai is in fact part of a collection called “Asian Beauty” by Thai Tuan, a famous Vietnamese silk maker, which features many other attractions across Asia on the Vietnamese traditional dress, according to the Heritage editorial board.

The collection is intended to show respect for Vietnam’s ao dai and Asian heritage, and the Shwedagon Pagoda image was deliberately chosen to introduce the typical religious trait of Asia, according to the designers.

The Heritage editorial board said it was a lesson learnt for using religion-themed pictures for the magazine.

“We always respect all religions and religious relics of each nation in the world,” it said in a statement.

The editorial board has promised to take into consideration all countries’ cultural value, beliefs and religions in its future publications.

VIETNAM:Vietnam Airlines Considers Reducing Direct Flights To Russia

According to the Vietnam Administration of Tourism, Vietnam attracted 330,000 Russian tourists in the first 11 months of 2014, up 25 percent from last year.

However, the number of Russian tourists booking for December has declined over 50%. The main reason is due to the devaluation of the ruble. The ruble has depreciated 60% against the US dollar in 2014.

As usual, this time the Russians often travel to avoid the cold, but do not have a good signal for travel companies, when they were reduced to 50% service charge which is not attracted Russian tourists.

Other companies said they have suffered losses through charter flights from Russia and they will have many flights canceled if the number of Russian tourists continues to decline.

Vietnam Airlines said it has begun a review of direct flights to Russia due to the reduced number of passengers.