News / Vietnam needs more airfreight capacity as demand for exports grows

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Vietnam’s airfreight sector could find itself losing out to hauliers if efforts are not made to suitably equip its domestic fleet for the surge in demand for Asia-Pacific capacity.

A key beneficiary of the western move from China as a manufacturing hub, Vietnam has experienced a surge in demand for its exports in recent years, achieving growth of 6.4% in value last year and up around 14% by the end of H1 25.

Reflecting the surge in production is the pressure on airfreight carriers in the region to meet the growing demand for capacity.

Rotate’s capacity database points to a 4% week-on-week increase in available capacity in the intra-Asian network last week, a 9% boost year on year.

Much of the momentum is being driven by the growth in Vietnamese output, McKinsey noting the  country “continues to be the region’s best performing economy”.

But Vietnam’s freight capacity has struggled to match the needs of its exporters, prompting flag-carrier Vietnam Airlines to confirm it plans to launch a freighter division next year.

General director Le Hong Ha told investors at last month’s AGM the carrier would convert an A321 and hopefully have it in service before this year was out.

Given the country’s lack of a dedicated cargo airline, following the end of plans by IPP Air Cargo, the move by Vietnam Airlines will be welcome, but the carrier is likely to find itself facing stiff competition from the ever-improving regional haulage links.

Kathy Liu, VP of global sales and marketing at Dimerco, told The Loadstar shippers had already “got used” to trucking goods around the region, with easy links to “China, Thailand, Vietnam, Singapore and all the way up to Malaysia”.

Ms Liu added that it was now “easy to connect the destinations manufacturers have transferred their production lines to”.