Enhancing Aviation Collaboration
During his state visit to India, Prime Minister Pham Minh Chinh met with Gautam Adani, Chairman of Adani Group and Asia’s richest billionaire with a net worth of $122 billion, ranking among the top 25 in the world.
At the meeting, the head of Adani Group expressed his intention to strengthen cooperation with Vietnamese partners in aviation and logistics, including the development of Long Thanh Airport Phase 2 and Chu Lai Airport. Adani Group is India’s largest airport operator.
The group sought the Prime Minister’s direction, facilitation, and suggestions to promote their investment activities in Vietnam.
Prime Minister meets with Indian billionaire. Photo: VGP/Nhat Bac
In response, Prime Minister Chinh appreciated the group’s business model, scale, vision, and contributions to India’s economic development and other countries, including their operations in Vietnam. He welcomed Adani Group’s intention to collaborate, invest, and expand their investments in Vietnam, with a total investment of around $10 billion.
The Prime Minister also welcomed the group’s proposal to participate in the construction of Long Thanh Airport Phase 2 and Chu Lai Airport, suggesting they coordinate with Vietnamese agencies to complete the necessary procedures as per legal regulations. He emphasized the strategic location and significant potential of Chu Lai Airport.
The Vietnamese government also requested Adani Group to enhance technology transfer and cooperate with Vietnamese businesses, helping them improve their capabilities and integrate into Adani’s supply chain and development ecosystem.
“The government is committed to accompanying and creating favorable conditions for investors to effectively, successfully, and sustainably conduct their business activities in Vietnam, including in strategic infrastructure fields,” the Prime Minister emphasized.
Long Thanh Airport Phase 2 Development Project
The Long Thanh Airport Project is a special national project of great significance to Vietnam’s socio-economic development. The total investment for the project is estimated at VND 336,630 billion (approximately $16 billion), with 4% allocated for the first phase.
In June, the Ministry of Transport proposed to the Prime Minister to consider assigning the Vietnam Airports Corporation to develop the investment plan for Phase 2 of the Long Thanh Airport.
According to Resolution 94/2015, the National Assembly determined the investment scale of the Long Thanh Airport in phases. Phase 2 involves the construction of an additional runway and passenger terminal to achieve a capacity of 50 million passengers per year. Phase 3 will complete the project to reach a capacity of 100 million passengers and 5 million tons of cargo annually.
Long Thanh Airport Rendering. Photo: Ministry of Transport
The Ministry of Transport stated that to prepare the site for the T2 passenger terminal and the second runway in Phase 2 of the project, the government needs to direct the preparation of the feasibility report for Phase 2 and submit it to the National Assembly for approval.
In 2023, the Prime Minister also assigned the Ministry of Transport to lead the research on the implementation plans for Phase 2 of the Long Thanh International Airport project, along with the construction of an additional runway, to be carried out immediately after the completion of Phase 1.
Currently, approximately 4,000 engineers and workers from Vietnam and abroad are working on Phase 1 of the Long Thanh International Airport project, supported by over 2,000 construction machines. The project is being accelerated to be operational by the end of 2025.
Chu Lai Airport Upgrading Project
In 2023, the Prime Minister approved the master plan for the development of the national airport and airfield system for the period of 2021-2030, with a vision towards 2050. Accordingly, Chu Lai Airport was planned to become an international airport.
Between 2021 and 2030, Chu Lai International Airport is expected to be expanded to 4F standards with a designed capacity of about 10 million passengers per year. The planned area for the airport is 2,006.56 hectares, with a total estimated investment of VND 15,968 billion, equivalent to $630 million.
By 2050, Chu Lai International Airport will continue to be developed to 4F standards, but with a designed capacity of 30 million passengers per year, maintaining the same area, and an estimated investment of VND 37,950 billion, or $1.5 billion.
Chu Lai Airport illustration created using AI ChatGPT.
Chu Lai Airport is located in Nui Thanh district, Quang Nam province, bordering Quang Ngai province. Upgrading the airport to an international standard is expected to boost economic and social development in both Quang Nam and Quang Ngai provinces.
Currently, the socialization project for Chu Lai Airport has been proposed by the Quang Nam Provincial People’s Committee to the Ministry of Transport and is awaiting the formation of a nationwide airport development mechanism through socialization. Quang Nam has proposed two investment options:
The first option is for ACV to partner with capable private enterprises to jointly invest in and develop the airport, with ACV as the exclusive operator for both the current western area and the newly developed eastern area of Chu Lai Airport.
The second option involves two operators: ACV will continue to manage the western area, while a second operator will be invited to invest in the eastern area as per the planning.
Gautam Adani, 61, founded Adani Group in 1988, initially focusing on commodities trading.
Adani Group has since become India’s largest infrastructure and energy conglomerate, with 14 of India’s largest private ports, accounting for 25% of India’s port capacity, and operating 7 airports across the country. It is also India’s largest energy company.
In 2023, the group achieved a revenue of approximately $33 billion and a profit of about $2.9 billion, employing 29,000 people globally.
