The Sky’s the Limit: A $275 Million Airport Project Takes Off in Vietnam’s Highest Town

The People’s Committee of Lao Cai Province has issued Decision No. 2051/QD-UBND, signed by the Chairman of the Provincial People’s Committee, approving adjustments to Component Project 2 – Construction of the Airport under the Sapa Airport Investment and Construction Project through the public-private partnership (PPP) mode.

Phase 1 of the project maintains its original scope and scale, aiming to construct an airport that meets the standards of a 4C-level airport according to the International Civil Aviation Organization (ICAO) with a capacity of 1.5 million passengers annually, while also integrating a military airport at the second level.

A novel aspect of this decision is the inclusion of Phase 2 enhancements, designed to increase the airport’s capacity to 3 million passengers per year, aligning with development plans. These enhancements encompass constructing two taxiway sections connecting to Head 14, adding a parallel taxiway from Head 14 to the aircraft parking area (23m wide), providing three additional parking positions for Code C and equivalent aircraft, expanding the passenger terminal (to accommodate 3 million passengers annually across two phases), and arranging passenger boarding bridges.

Component Project 2 has a contract duration of 46 years and 7 months, encompassing: 1 year for design, evaluation, and contractor selection; 2 years and 1 month for Phase 1 construction; and 43 years and 6 months for operation, exploitation, and capital recovery.

Phase 2 will be implemented during the operation and exploitation period without impacting the project’s financial plan.

The total investment for Component Project 2 amounts to VND 6,393,845 billion (including VAT), with VND 3,982,122 billion allocated for Phase 1 and VND 2,411,723 billion for Phase 2.

The capital structure comprises VND 3,537,946 billion in equity and debt, and VND 2,855,899 billion in state capital for the PPP project, accounting for 44.38% of the total investment.

The investor selection method is open bidding without pre-qualification, and the investor selection process is scheduled for the third quarter of 2025.

The Lao Cai Provincial People’s Committee assigns the inviting agency (Department of Construction) to take charge of finalizing the bidding documents, submitting them to the competent authority for approval, and conducting the investor selection process in accordance with legal regulations.

Perched at an altitude of 1,500-1,800m, the misty town of Sapa boasts a pleasant climate with a temperate character, featuring average temperatures ranging from 15-18°C.

With its majestic natural scenery, diverse cultural identity, and distinctive climate, Sapa is not only a tourism icon of the Northwest region but also asserts its status as a National Tourism Area on Vietnam’s tourism map and the international stage. Sapa’s strategic goal by 2030 is to establish itself as an international-standard National Tourism Area and evolve into an ASEAN-standard clean tourist city. The town aims to attract 9 million visitors annually by 2030, with over 30% being international tourists.

This region is also witnessing significant investment in transportation infrastructure, including the recently opened route connecting the Noi Bai – Lao Cai Expressway to Sapa, along with upgrades and improvements to the transportation network connecting Sapa with other localities and tourism subdivisions. Notably, Lao Cai Province has laid the groundwork for the commencement of the Sapa Airport construction project.