Air cargo sector to stay in fast lane

Saturday, Sep 21, 2019 15:30

A panel discussion on air transportation and international trade in the industry 4.0 era at the fourth International Conference and Exhibition on Air Freight Logistics Viet Nam in HCM City on September 20. — VNS Photo

The Vietnamese air freight market has seen remarkable growth in recent years and the momentum is expected to continue, the fourth International Conference and Exhibition on Air Freight Logistics Viet Nam heard in HCM City on Friday.

Tran Thanh Hai, deputy director of the Ministry of Industry and Trades import-export department, said along with the countrys economy, the aviation industry, especially logistics, too had made great progress.

Air transport accounts for a small proportion of goods in terms of volume, but they usually are of high value and have to be transported long distances in a short time, according to the official.

“Viet Nam's air cargo transport currently accounts for a very small volume of exports but 25 per cent of value due to the specialised transportation of high-value items such as electronics, certain kinds of seafood and garment and textiles.”

Nguyen Cong Bang, deputy director of the Ministry of Transports transport department, said according to the International Air Transport Association, Viet Nam is the worlds seventh fastest growing aviation market.

“In the vision to 2035, Viet Nam's aviation market is considered among the top five markets in terms of growth. The rapid development of the aviation market has strongly boosted the development of tourism and trade and attracted more investment in the country in recent years.”

"The market has great potential for development, and offers many opportunities for local and international firms in it," he said.

Hai also spoke about the challenges the air cargo industry faces.

“No domestic airliner has aircraft designed to carry goods in bulk. So Vietnamese exporters have to mainly rely on foreign firms for air cargo transport.”

Only Noi Bai and Tan Son Nhat out of more than 40 airports in the country have separate areas for cargo handling, he said.

“The air transport industry also lacks skilled human resources [and] … developing human resources … is an urgent need.”

But despite these challenges, the air transport market has a lot of potential, and both the Government and businesses need to have clear development strategies, according to Hai.

Youssef Beydoun, head of cargo business relationships at Dubai Airports Commercial and Communications – Cargo & Logistics Business Management, said industry 4.0 is revolutionising the air freight business, and requires businesses to have a long-term vision and adopt new business strategies.

Other delegates said to prepare for the new age of logistics, companies needed IT solutions to cut out redundant processes, be cost-efficient, and anticipate future standards.

Airports must have good technology and infrastructure systems in place to meet air transport demand and take over competitors, they said.

Organised by the Viet Nam Logistics Business Association and the Civil Aviation Administration of Viet Nam, the event brought together businessmen, key industry leaders and experts from over 350 companies and more than 35 airlines and airports in 30 countries and territories.

The biennial event also featured an exhibition with 50 booths set up by local and foreign logistics services providers. — VNS

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