Vietnam’s emerging and dynamic private sector proved its resilience during the Covid-19 pandemic as it helped the country become one of the few countries to obtain positive growth in 2020.
Many private enterprises grew strongly during the difficult time when the Covid-19 pandemic broke out.
Role of pioneers
Vietjet Air CEO Nguyen Thi Phuong Thao. |
Vietjet Air has released its semi-annual financial report for 2021 with after-tax profit of more than VND34 billion, up 102% year on year thanks to profit from new projects.
Vietjet is known as a young private airline with several years of experience, but it has occupied the leading position in the domestic market since 2018.
The younger private airline – Bamboo Airways – remains profitable and on September 23 it successfully carried out the first non-stop flight to the US.
These are impressive results, especially when Vietnam’s aviation industry is facing unprecedented difficulties. Even the oldest and largest airline in Vietnam – the national flag carrier Vietnam Airlines – has incurred huge losses of tens of trillions of VND.
In the past 10 years, Vietnam’s aviation market has undergone a great change along with the rise of private firms. The industry has become a typical example for the development and contribution of the private sector to the economic development of Vietnam.
With the participation and competition of the private sector, the air route network of Vietnam has expanded widely with hundreds of new domestic and international routes opened over the past decade. Private groups have also been involved in the development of airports.
In the past five years, Vietnam’s aviation industry has recorded a double-digit growth rate, compared to China at 10-15%, Thailand and South Korea at about 10%. International organizations rated Vietnam’s aviation industry as one of the fastest growing in the world.
The strong development of the private sector has also been seen in other fields such as construction materials with…