Vietnam’s aviation market, along with that of Indonesia, has always been seen as a shining star in Southeast Asia due to its vast population of 97 million people and a country that stretches 1,650km from north to south. During the pandemic, its domestic aviation capacity had already recovered to 2019 levels by June 2020, although its international air capacity had the agonizing wait until Q1 2022 when borders reopened.
As of November 2023, compared to 2019 Vietnam is -12% for total seat capacity, with -11% for domestic capacity, and -12% for international capacity. However, that positive snapshot in time doesn’t deliver the whole picture for Vietnam’s aviation market – one of international air capacity growing and then leveling off, whilst its domestic air capacity is in decline.
International Air Capacity Leveling Off
Analyzing international air recovery first, it undeniably experienced a surge after the borders reopened, peaking in July and August 2023 at 1.95 million…
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