Decision No. 236/QD-TTg dated February 23, 2018 of the Prime Minister on approving the adjusted planning for development of air transport by 2020 and the orientation towards 2030

THE PRIME MINISTER

Decision No.236/QD-TTg dated  February 23, 2018 of the Prime Minister on approving the adjusted planning for development of air transport by 2020 and the orientation towards 2030

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Law on Vietnam Civil Aviation dated June 29, 2006 and the Law on amendments to some articles of the Law on Vietnam Civil Aviation dated November 21, 2014;

At the request of the Minister of Transport,

DECIDES:

Article 1. To approve the adjusted planning for development of air transport by 2020 and the orientation towards 2030. To be specific:

I. DEVELOPMENT VIEWPOINTS

1. Plan the development of air transport in line with Vietnam s air transport development strategy; closely combine the air transport development planning with the planning for development of other types of transport and relevant planning; contribute to boosting national socio-economic development and international integration.

2. Develop Vietnam’s civil aviation sector in a sustainable and uniform manner; ensure aviation security in association with national defense and security assurance, sovereignty defense and national airspace guard; gradually improve competitiveness and service quality on a par with the region and the world; closely and appropriately connect air transport to other modes of transport; protect the environment and respond to climate change.

3. Develop airport infrastructure and air traffic management system in a modern and uniform manner according to standards of the International Civil Aviation Organization (ICAO) to serve Vietnam’s aviation market development; develop multimodal transport and establish logistics service centers at airports in high demand for cargo transport, especially major international airports. Encourage domestic and foreign organizations and individuals to invest in aviation infrastructure; ensure harmony of the State interests and interests of enterprises and the people in investment in, management and use of aviation infrastructure and provision of aviation services.

4. Develop Vietnam’s air transport market in association with regional and international air transport; ensure a healthy and fair competition between airlines. Boost the implementation of the roadmap for air transport liberalization on a bilateral and multilateral basis; integrate into and participate in the ASEAN Single Aviation Market (ASAM).

5. Develop Vietnamese modern aircraft fleet in a coherent structure, in conformity with the market development planning and forecast, route network development plan and aviation infrastructure development plan, and within airlines’ capacity.

6. Gradually develop airline industry in association with the world development of advanced aviation technology; serve development demands, increase competitiveness and capability of conducting researches, apply aviation technologies, contribute to development of national industry.

7. Improve state management of aviation according to international standards.

II. DEVELOPMENT TARGETS

1. General targets by 2030:

Vietnam’s air transport market is expected to be among the top 4 ASEAN countries in terms of transport volume. Apply modern technology to development of aircraft fleet. Improve capacity of the airport system to meet transport demands. Establish and develop air passenger and cargo transport centers on a par with the ASEAN region. Develop a modern air traffic management system in Asia. Develop general aviation to meet socio-economic demands. Gradually develop aviation technologies on a par with the ASEAN region.

2. Specific targets in periods

a) The total passenger transport market is expected to increase by an average of 16% per year during 2015 - 2020 period and 8% per year during 2020-2030 period. The total air cargo transport market is expected to increase by an average of 18% per year during 2015 - 2020 period and 12% per year during 2020-2030 period.

b) By 2020, the transport capacity of Vietnamese airlines by 2020 is set to reach 64 million passengers and 71 billion passenger-kilometers, 570 thousand tons of cargo and 5.2 billion ton-kilometers; rising to around 131 million passengers and 125 billion passenger-kilometers; 1.7 million tons of cargo and 17 billion ton-kilometers by 2030.

c) By 2020, the transport volume via the airports is expected to hit roughly 131 million passengers and 2.2 million tons of cargo per year, while the combined designed capacity of airports is expected to reach 144 million passengers and 2.5 million tons of cargo per year. By 2030, the transport volume via the airports is expected to hit roughly 280 million passengers and 6.8 million tons of cargo per year, while the combined designed capacity of airports is expected to reach 308 million passengers and 7.5 million tons of cargo per year.

d) Air navigation capacity of the entire system is expected to reach 1.5 million flights by 2020 and 2.5 million flights by 2030.

dd) The aviation training system is expected to serve aviation resource demand and international training. Establish and develop an aviation technology application, development and research center.

e) By 2030, aircraft parts and equipment, and aviation equipment is expected to be designed and fabricated.

III. DEVELOPMENT PLANNING BY 2020 AND THE ORIENTATION TOWARDS 2030

1. Airport network:

a) By 2020:

- There will be 23 airports, including 13 domestic airports and 10 international airports. Among which, airports of Noi Bai, Da Nang, Tan Son Nhat and Cam Ranh are major international airports. To be specific:

+ In northern region: 7 airports including 4 international airports (Noi Bai, Van Don, Cat Bi, Vinh) and 3 domestic airports (Dien Bien, Tho Xuan, Dong Hoi);

+ In central region: 7 airports including 03 international airports (Phu Bai, Da Nang, Cam Ranh) and 4 domestic airports (Chu Lai, Pleiku, Phu Cat, Tuy Hoa);

+ In southern region: 9 airports including 3 international airports (Tan Son Nhat, Can Tho, Phu Quoc) and 6 domestic airports (Buon Ma Thuot, Lien Khuong, Phan Thiet, Con Dao, Rach Gia, Ca Mau).

- 23 airports cover a total area of around 13,321 hectares.

- Considering carrying out some key projects:

+ Improve and expand 21 existing airports (Noi Bai, Cat Bi, Vinh, Phu Bai, Da Nang, Cam Ranh, Tan Son Nhat, Can Tho, Phu Quoc, Dien Bien, Tho Xuan, Dong Hoi, Chu Lai, Pleiku, Phu Cat, Tuy Hoa, Buon Ma Thuot, Lien Khuong, Con Dao, Rach Gia, Ca Mau) to serve air transport demand;

+ Start the first phase of Long Thanh International Airport project; construct Van Don, Phan Thiet and Sapa airports and others according to the planning.

- Uniformly develop and expand facilities for provision of services at airports according to the planning, especially 3 aviation logistics centers in Noi Bai, Da Nang and Tan Son Nhat international airports.

- Encourage development of general aviation in association with normal air transport at airports, especially the airports in areas having potential for tourism development such as Sa Pa, Van Don, Dong Hoi, Chu Lai, Phu Cat, Tuy Hoa, Lien Khuong, Phan Thiet and Con Dao.

(See the Appendix I).

b) By 2030:

- There will be 28 domestic airports including 15 domestic airports and 13 international airports. Among which, Noi Bai, Da Nang, Cam Ranh, Tan Son Nhat and Long Thanh are major international airports. To be specific:

+ In northern region: 10 airports including 5 international airports (Noi Bai, Van Don, Cat Bi, Tho Xuan, Vinh) and 5 domestic airports (Lai Chau, Dien Bien, Sa Pa, Na San, Dong Hoi);

+ In the central region: 8 airports including 4 international airports (Phu Bai, Da Nang, Cam Ranh) and 4 domestic airports (Quang Tri, Pleiku, Phu Cat, Tuy Hoa);

+ In southern region: 10 airports including 4 international airports (Tan Son Nhat, Can Tho, Phu Quoc, Long Thanh) and 6 domestic airports (Buon Ma Thuot, Lien Khuong, Phan Thiet, Con Dao, Rach Gia, Ca Mau).

- 28 airports cover a total area of around 20,751 hectares.

- Focus on key projects, especially major international airports:

+ Start the second phase of Long Thanh International Airport project according to the planning;

+ Invest in and expand Noi Bai international airport and Da Nang international airports according to the planning.

+ Invest in infrastructure of Chu Lai international airport to make it become an international cargo transport center.

- Continue to invest in and develop other airports and uniform facilities for provision of services at airports according to the approved planning and in service of development demands.

- Continue to complete and develop 3 aviation logistics centers in Noi Bai, Da Nang and Tan Son Nhat international airports and construct logistics centers in Van Don, Chu Lai and Long Thanh airports and others in high demand for cargo transport.

- Continue to develop general aviation in association with normal air transport at small and medium-sized airports.

- Develop a new international airport in a manner that ensures uniform development of the entire airport system and satisfies the criteria: the new airport is located in the national economic, political, cultural and tourist center; there is a large number of international passenger arrivals at the new airport; the new airport shall play an important role in regional and local socio-economic and cultural development if direct international flights are open.

(See the Appendix II).

2. Route network:

a) By 2020:

Establish international and domestic route network using the “hub-and-spoke” model through major international airports together with the “point-to-point” model in service of market demand.

- International route network: increase frequency and expand to more destinations, operate more transit flights, operate flights from Vietnam to destinations in regional route networks, including:

+ In Northeast Asia: Japan, Korea, China including Taiwan, Hong Kong, Macau.

+ In Southeast Asia: Cambodia, Indonesia, Malaysia, Myanmar, Laos, Singapore and Thailand; consider opening new flights to the Philippines.

+ In South Asia, South Pacific and Middle East: Australia, India, New Zealand, Middle East (UAE, Qatar).

+ Intercontinental routes: France, Germany, the UK, Russia, the US and other destinations in Europe.

- Domestic route network: open new inter-regional routes, especially the inter-regional routes without transit through the airports in Ha Noi, Da Nang and Ho Chi Minh city; consider opening flights to Vietnamese islands.

- Operate special purpose aircraft cargo flights from Vietnam to destinations in Southeast Asia and Northeast Asia, and cooperate with partners in transporting cargoes to Europe and North America.

- Continue to develop general aviation.

b) By 2030:

- Develop route network according to multi-modal transport network model, ensure balanced development and establish a connection between various modes of transport.

- Improve and expand international route network, especially intercontinental flights to Noi Bai, Da Nang, Cam Ranh, Long Thanh, Tan Son Nhat, Chu Lai; open international flights to new destinations in Europe, North America, Middle East, Africa and South America. Encourage the opening of international flights to national tourism centers.

- Continue to improve and expand domestic route network.

- Develop general aviation widely.

3. Vietnamese aircraft fleet:

- Focus on developing and operating a fleet of new aircrafts with modern equipment and technology, which are issued with the Type Certificate by the Federal Aviation Administration (FAA) or the European Aviation Safety Agency (EASA), conform to standards and be within capacity of the airport/aerodrome infrastructure.

- Establish and develop an aircraft fleet specializing in transporting cargoes and serving general aviation.

- The number of aircrafts in operation: 220 aircrafts by 2020 and 400 aircrafts by 2030.

4. Air traffic management:

a) By 2020:

Establish an air traffic management system according to ICAO’s requirements and standards and in conformity with the regional air navigation plan; implement the planning for implementation of new communications, navigation and surveillance/air traffic management (CNS/ATM) systems, Block 0 and part of Block 1 included in the Aviation System Block Upgrades (ASBU), including establishment and implementation of flexible use of airspace by both civil and military air traffic:

- Organize the air traffic management system covering 3 elements: air traffic services (ATS), airspace management (ASM) and air traffic flow management (AFTM); establish and implement flexible use of airspace; invest in and perform air traffic flow management (AFTM); invest in, improve and modernize facilities for provision of air traffic management services; consider applying reduced vertical separation minimum (RVSM), provide approach control facilities for busy aerodromes and develop flight information centers on Vietnamese islands; basically complete the design and application of the performance-based navigation (PBN) method;

- Construct on-site backup facilities in Hanoi Area Control Center (ACC) and Ho Chi Minh city ACC and flight navigation facilities at major international airports to ensure air traffic reliability and continuity in any situation;

- Complete provision of air traffic management services for general aviation;

- Install aircraft equipment to satisfy requirements for operations in a new CNS/ATM environment;

- Improve coverage and reliability of the CNS system, ensuring compatibility with new technology according to the global air navigation plan; gradually expand and implement a contingency plan for coverage of communications and surveillance of controlled routes and airspace;

- Construct and use forecasting model and meteorological information exchange system according to the ICAO’s roadmap; unify and upgrade aeronautical meteorological information database network; upgrade, modernize and construct new weather radar stations, wind shear alert systems, meteorological monitoring systems and other aeronautical meteorological equipment in busy airports;

- Make the transition from aeronautical information services (AIS) to aeronautical information management (AIM) according to the ICAO’s roadmap. Create, manage and use electronic terrain and obstacle data (eTOD);

- Complete organizational structure, invest in infrastructure, vehicles and equipment and provide human resources to improve the capacity of land and sea-based search and rescue system;

- Invest in aircrafts and flight equipment for inspecting, calibrating and validating flight procedure in the new CNS/ATM environment, including performance based navigation (PBN); expand flight calibration services to countries in the region.

b) By 2030:

Continue to increase reliability and modernize air navigation infrastructure on the top level in Asia. Continue to implement Block 1, Block 2 and part of Block 3 included in the ASBU program.

- Complete the ATM system covering 3 areas: ATS, ASM and ATFM; organize airspace and air route using new CNS/ATM systems and complete flexible use of airspace; complete automated air traffic management system and apply AFTM; consider performing automatic air traffic management towards application of aircraft self-separation algorithm according to ICAO’s standards and the world technology; mainly apply PBN;

- Continue to construct on-site backup facilities in key air navigation facilities of the two flight information regions (FIR) to ensure air traffic reliability and continuity in any situation;

- Complete expansion of coverage and improvement of backup capacity of CNS system in controlled airspace; continue to upgrade CNS systems according to the ICAO s plan; expand low flying communications and surveillance coverage to general aviation.

- Complete information connection and global aeronautical meteorological information exchange. Improve quality of meteorological products to satisfy new ATM requirements;

- Complete the transition from AIS to AIM. Complete creation, management and use of eTOD;

- Continue to invest in and upgrade aircrafts, equipment and provide human resources capable of inspecting, calibrating and validating flight procedure in Vietnam and providing flight calibration services for countries in the region;

- Make regulations on air traffic management of unmanned aerial vehicle (UAV).

5. Aviation enterprises:

a) By 2020:

Continue to boost restructuring of state-owned enterprises, enable enterprises to engage in aviation through the socialist-oriented market mechanism. To be specific:

- Air transport services: continue to develop Vietnam Airlines into a key air transport service provider having its global competitiveness among the leading groups of the ASEAN region; enable Vietnamese airlines to develop and boost the provision of domestic and international passenger and cargo services. Develop air transport service provider to meet market demand and conditions for provision of air transport services, and to be within the capacity of aviation infrastructure.

- General aviation: develop the Vietnam Helicopter Corporation and airlines serving the national economy, tourism and general aviation.

- Airport/aerodrome operation: ensure that each airport/aerodrome has one airport/aerodrome operator; continue to renovate and improve efficiency of the Airports Corporation of Vietnam (ACV) to enhance its key roles in airport operation; provide commercial and technical services at the airports in a uniform manner to meet air transport demand; enable enterprises to fairly access and use airport infrastructure and land at a reasonable cost.

- Air traffic management: continue to renovate and improve efficiency of Vietnam Air Traffic Management Corporation to manage and provide air navigation services in Hanoi and Ho Chi Minh city FIRs according to ICAO standards; establish flight calibration and inspection service providers; the air traffic management service provider shall be responsible for flight procedures, control of aircraft in the movement area and provision of aviation meteorological services at airports/aerodromes.

b) By 2030:

- Continue to renovate and improve the efficiency of state-owned enterprises, facilitate development of the private sector in civil aviation according to the Government’s programs and plans.

- Continue to develop air transport service providers and general aviation to meet market demand and conditions for provision of air transport services, and to be within the capacity of aviation infrastructure. Develop cargo airlines.

- Develop aviation supporting enterprises to meet development demand, such as production of commercial aircraft materials, accessories and parts, assembly and production of small planes and aviation equipment parts.

6. Human resources and training institutions:

a) By 2020:

- Continue to increase labor productivity, maintain labor growth at a rate lower than output growth; recruit aviation security inspectors according to ICAO standards; recruit experts capable of conducting researches, developing and applying technology towards industry 4.0; increase private sector involvement in development of aviation human resources.

- Establish a network of aviation training institutions according to international standards; promote international cooperation, mobilize social resources to invest in and develop professional training institutions; promote the connection between training institutions and aviation enterprises. Develop Vietnam Aviation Academy into a national leading professional training institution at all levels and expand training to countries in Southeast Asia.

- Establish training center and flight training center in some conditional airports (such as Chu Lai, Phu Bai, Dong Hoi, Rach Gia, etc.), establish pilot cadet training centers satisfying standards of the training center at all three levels.

b) By 2030:

- Continue to increase labor productivity, maintain labor growth at a rate lower than output growth; serve the airline industry’s demand for pilots, air traffic controllers, aircraft maintenance staff and aviation security staff.

- Recruit experts capable of conducting researches, developing and applying technology to serve industry 4.0 demands.

7. Aviation industry

a) By 2020:

- Develop the aircraft and aircraft equipment system maintenance system which is expected to serve as a key role in development of aviation industry; prioritize the use of land in Noi Bai, Tan Son Nhat, Da Nang, Chu Lai, Cam Ranh, Phu Quoc and Can Tho airports for construction of aircraft maintenance workshops satisfying international standards.

- Produce high-tech equipment such as information technology, automation and control equipment in combination with mechanical products; execute aviation equipment production projects.

- Establish technical standards in aircraft and aircraft operation, air traffic and airport management to ensure that aviation technology reaches regional advanced level.

- Produce some aircraft interior parts.

- Consider establishing an aviation technology application, development and research center to serve industry 4.0 demands.

b) By 2030:

- Establish regional centers for aviation engine and equipment maintenance. Encourage cooperation and joint venture in processing and production of aircraft parts, materials and accessories in Vietnam.

- Gradually participate in the global supply chain.

8. Environmental protection

a) By 2020: implement ICAO’s regulations, promote international cooperation in implementing the action plan to reduce CO₂emissions from the aviation sector; create a noise map of some airports located near cities or densely populated residential areas; formulate airport noise management policies; establish eco-airport criteria.

b) By 2030: continue to implement the action plan to reduce CO2 emissions from the aviation sector; apply eco-airport criteria to international airports.

IV. POLICIES AND PRIMARY SOLUTIONS

1. Complete the system of legal documents in combination with administrative reform, especially administrative procedures. Complete and increase the capacity and organizational structure of Vietnam’s aviation authorities according to international standards.

2. Continue to complete and implement the aviation security assistance and capacity building strategy, national aviation safety program, aviation system block upgrades (ASBU) plan and master plan for CNS/ATM systems development.

3. Promulgate policies and mobilize social resources to invest in aviation infrastructure, industry and service providers, aviation staff training institutions; promote PPP investment to execute commercial aviation infrastructure and service projects that are able to recover capital. Mainly use state funding for investment in aviation infrastructure constructed for the purposes of national defense and security and national search and rescue and emergency, opening of flights to remote and isolated areas, and islands, especially investment in movement area and air traffic management infrastructure.

4. Complete regulations on management, use and maintenance of national airport/aerodrome infrastructure and regulations on granting franchise for airport/aerodrome operation.

5. Effectively implement logistics center development planning nationwide by 2020 and the orientation towards 2030; ensure convenient transport to airports, especially logistic centers; introduce polices and a legal framework for development of logistics network, domestic and international multimodal transport and general aviation business.

6. Prioritize use of airport land for development of civil aviation.

7. Participate in implementing regional and international open skies policy on the basis of national interest protection; formulate an overall policy for development of aviation and tourism.

8. Adopt solutions for removing difficulties faced by enterprises; ensure a fair business environment and promote healthy competition. Continue to renovate and improve efficiency of state-owned enterprises. Protect State’s interests in operation of state-funded airport infrastructure.

9. Boost research, development, application and transfer of technology towards modernization and international integration. Remove unreasonable technical barriers to fair bidding for domestic products reaching international standards. Establish international joint ventures or association or seek 100% foreign investment in execution of projects on production of aviation equipment, aircraft accessories, and aircraft and aircraft engine maintenance in Vietnam. Combine long-term aircraft investment programs with cooperation in aircraft engine maintenance and production of aircraft accessories and parts.

10. Promote international cooperation in aviation when unveiling and adopting policies, especially on provision of training for aviation staff according to international standards and reduction of CO₂emissions from aviation sector in accordance with ICAO’s regulations.

11. Increase private sector involvement in provision of training for aviation staff (pilot, aircraft technicians, air traffic manager, aviation security staff) through enterprises and in combination with state management; establish aviation staff training centers according to international standards; establish and update standards to be satisfied by aviation staff according to international standards.

V. IMPLEMENTATIONORGANIZATION

1. The Ministry of Transport shall:

a) organize and manage implementation of the planning; carry out periodic inspection and supervision of implementation of the planning. Take charge and cooperate with the Ministry of National Defense, Ministry of Public Security, Ministry of Planning and Investment, Ministry of Finance, Ministry of Natural Resources and Environment and relevant authorities in implementation of the planning.

b) according to the planning, direct the Civil Aviation Authority of Vietnam and relevant units in formulating, submitting and approving detailed planning every five years and annually in conformity with national socio-economic development; provide guidance on implementation of the planning; consider projects and offer necessary solutions for implementing the planning to the Government, which will submit them to the Prime Minister for consideration; carry out periodic review and assessment of implementation of the planning.

c) approve detailed planning of airports.

d) formulate and approve planning for organization of civil aviation airspace and FIR.

dd) formulate a comprehensive plan for general aviation development, and regulations on organization, management and operation general aviation aircraft according to ICAO’s standards.

e) take charge of forming aviation security control forces.

g) transfer the Kon Tum, An Giang and Vung Tau aerodromes which are no longer included in the system of national airports/aerodromes to the Ministry of National Defense.

h) complete procedures for removing the approved comprehensive planning for Gia Lam airport, which will be managed by the Ministry of National Defense.

2. The Ministry of National Defense shall:

a) implement the dedicated aerodrome planning.

b) take charge and cooperate with the Ministry of Transport in receiving and managing Kon Tum, An Giang and Vung Tau aerodromes which serve as dedicated aerodromes.

c) take charge and cooperate with the Ministry of Transport in planning, managing and guarding airspace; take charge and cooperate with the Ministry of Transport and the Ministry of Public Security in making and promulgating regulations on management of UAV.

d) cooperate with the Ministry of Transport in formulating planning for organization of civil aviation airspace and FIR, and development of the civil air traffic management system; manage and operate civil and military aerodromes.

3. The Ministry of Public Security shall:

a) ensure national security in civil aviation.

b) cooperate with the Ministry of Transport in forming and training aviation security control forces.

c) cooperate with the Ministry of National Defense in making and promulgating regulations on air traffic management of UAV.

4. The Ministry of Planning and Investment shall request funding for construction of aviation infrastructure; consider promulgating regulations and offering incentives to effectively raise and use capital for aviation development.

5. The Ministry of Natural Resources and Environment shall:

a) cooperate with the Ministry of Transport in making regulations on management and use of land for development of aviation infrastructure.

b) take charge and cooperate with the Ministry of Transport in adopting solutions for environmental protection and response to climate change during civil aviation.

6. The Ministry of Industry and Trade and the Ministry of Finance shall take charge and cooperate with the Ministry of Transport in completing regulations on provision of aviation logistics services, import of aviation equipment and vehicle and make regulations on bonded warehouses serving civil aviation.

7. Other ministries shall, within their competence, implement the planning.

8. The People’s Committees of provinces and central-affiliated cities having the aviation infrastructure shall:

a) provide land for construction of aviation infrastructure according to strategy and planning on their own initiative.

b) ensure security and air traffic order and safety, disseminate the law on civil aviation.

c) cooperate with the Ministry of Transport and relevant ministries in managing planning, land and vertical clearance of aerodromes in accordance with regulations.

Article 2.This Decision takes effect on the signing date and replaces the Decision No. 21/QD-TTg dated January 08, 2009 of the Prime Minister on approval for planning for air transport development by 2020 and the orientation towards 2030.

Article 3.Ministers, heads of ministerial agencies, heads of Governmental agencies, People s Committees of relevant provinces and cities shall implement this Decision./.

For the Prime Minister

The Deputy  Prime Minister

Trinh Dinh Dung

APPENDIX I

SUMMARY OF CRITERIA APPLIED TO AIRPORTS BY 2020
(To attach with the Decision No. 236/QD-TTg dated February 23, 2018 of the Prime Minister)

APPENDIX II

SUMMARY OF CRITERIA APPLIED TO AIRPORTS BY 2030
(To attach with the Decision No. 236/QD-TTg dated February 23, 2018 of the Prime Minister)