Khanh Hoa: Gigantic airport project aims to boom economy!

Khanh Hoa: Gigantic airport project aims to boom economy!

Khanh Hoa Province in Vietnam plans to build the new Van Phong Airport with an investment of VND 7.892 trillion (approximately USD 311 million) under a public-private partnership (PPP) format. This project is part of the provincial master plan for the period 2021 to 2030, with a long-term vision until 2050. According to vietnam.vn Investments in the transport infrastructure of Khanh Hoa Province are intended to significantly improve local air traffic and connections.

The proposed airport will cover an area of ​​497 hectares and will be located in Van Ninh District, about 101 km from Cam Ranh International Airport and 49 km from Tuy Hoa Airport in Phu Yen Province. The project's expected payback period is 47 years, with VND2.150 trillion ($84.7 million) or 27.2% funded from the state budget.

Benefits and planning

A key advantage of the location is that no residential areas, protected forests, mangroves, historical relics or boat protection areas are affected. This makes location sharing much easier. The airport will have a runway of more than 3,050 meters in length and will reach an annual capacity of 1.5 million passengers in the first phase of construction from 2023 to 2029, meeting International Civil Aviation Organization (ICAO) 4E level standards.

There are three proposed options for implementing the project: On the one hand, the state can take over the site approval while the investors build the airport. Alternatively, investors could build the terminals, parking areas and traffic routes, while the state would be responsible for the earthworks, runways and operational infrastructure. However, the provincial authorities' preferred option is for the state to help with site clearance and relocation, while investors take over the construction of civil infrastructure.

Economic influence and planning

In addition to the new airport project, Khanh Hoa Province's existing airports, including Cam Ranh International Airport, are expected to be strengthened through adjusted airport planning and targeted investments. Historically, many airports in the region have suffered losses. Nevertheless, local communities are hopeful that the expansions and new investments will bring about a turnaround.

Vice Prime Minister Tran Hong Ha has already approved the study of Mang Den and Van Phong airports in airport system planning, emphasizing that efficient investment in airports requires careful analysis of natural and social conditions. Concerns about possible overuse of investments for real estate transactions also need to be addressed. Mobilizing private capital for airport infrastructure remains a challenge that needs to be reconsidered to support local authorities in the development of urban airport projects.

Overall, the airport project aims to promote socio-economic growth in the province and the Van Phong Economic Zone, create urbanized areas, industrial and tourism parks, and establish connections with key economic zones.