THE International Air Transport Association (IATA) has called on the Vietnamese government to work with the air transport sector to strengthen the country's economy through global air connectivity.
"The successful development of aviation will pay big dividends to the Vietnamese economy. It must be treated as a strategic asset and handled correctly," said IATA director general Tony Tyler, former CEO of Hong Kong's Cathay Pacific Airways.
Mr Tyler was giving the keynote address to the Vietnam Aviation Day organised by IATA and Vietnam Airlines.
Aviation contributes US$6 billion to Vietnam's GDP and supports 230,000 jobs and between 2008 and 2013, Vietnamese passenger traffic grew by 96 per cent, he said, adding that infrastructure was critical and needed improvement.
Vietnam ranks 82nd in the Infrastructure Index of the World Economic Forum's Global Competitiveness Report. Among the 10 ASEAN states, Vietnam is ranked sixth. Vietnam is addressing these low rankings with significant investments, he said.
While air freight accounts for a very small amount of Vietnam's trade by volume, it represents 25 per cent of Vietnam's trade by value, or $29 billion, he said, adding that e-freight will improve the efficiency of Vietnam's air cargo industry.
"A key step to implementing e-freight is the adoption of the e-Air Waybill (e-AWB). While Vietnam Airlines has been able to use e-AWB for domestic freight, it is unable to do so as Vietnam has yet to ratify the Montreal Convention 99 (MC99)," Mr Tyler said.
"I urge Vietnam to ratify MC99 quickly so greater efficiencies can be achieved in Vietnam's air cargo sector," said Mr Tyler. MC99 provides the legal framework for the use of electronic documentation, paving the way for forwarders to use the e-AWB," he said.
Vietnam has indicated plans to open its airports to foreign investment and management.
Said Mr Tyler: "While airport privatisation can provide access to the capital needed for infrastructure programmes, we have seen enough spectacular examples of unintended negative consequences to urge caution."
He said the most common problem was unjustified increases in charges or under-investment in the plan "as the private operator tries to squeeze out profit", said Mr Tyler.
"Vietnam needs to establish an effective independent economic regulator that is in line with well-established international norms. That should bring about fair charging schemes aligned with International Civil Aviation Organisdation (ICAO) policies.
"Lower charges will also improve the viability of routes and allow Vietnam to reap the benefits from enhanced connectivity and increased traffic," said Mr Tyler adding that ICAO's policies on charges are based on the principles of non-discrimination, cost-relatedness, transparency and consultation with users.
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