Vietnam’s Long Thanh Airport contract set to attract global consortiums

The multi-billion contract to build and operate Vietnam’s Long Thanh International Airport in the southern province of Dong Nai will be up for grabs soon.

The Vietnamese government has approved the project at an estimated cost of $7.84 billion, the country’s local media reported.

Once completed, the international airport is slated to handle 100 million passengers and five million tonnes of cargo by 2030. Vietnam’s goal would be to challenge and also provide an alternative to Thailand’s Suvarnabhumi and Singapore’s Changi airports’ , the current international hubs for the region.

A contract of this size is set to draw interest from airport infrastructure companies in the region as well as from consortiums across the globe.

It is learnt that Aeroports de Paris, the airport authority that owns and manages the fourteen civil airports in the Paris area, is also interested in the project.

Earlier this year, seven bidders had joined the race to build an international airport in Cebu in Philippines, and these included San Miguel Corp., Ayala Corp., Metro Pacific Investments and JG Summit Holdings, Filinvest (partner of Singapore’s Changi) and the $390 million deal was bagged by a partnership of Megawide Construction Corp and India’s GMR Infrastructure. Philippines will soon invite bids for the construction of a low-cost terminal at Clark International Airport.

Long Thanh International Airport will have a two-stage investment process. The first, to be completed by 2025, will be to develop passenger terminals that can service 25 million passengers and 1.2 million tonnes of cargo annually, and this is expected to cost as much as $5.6 billion

According to the Airports Corporation of Vietnam (ACV), an amount of $2.7 billion for the first phase will be funded from the Government budget, bonds, and through loansfrom the Official Development Assistance (ODA) fund. Mobilized capital from businesses, joint-ventures, public-private corporation will make up for the remaining $2.9 billion to build the stations, parking lots, aircraft maintenance workshop, fuel system and commercial buildings.

The second phase will see the airport being expanded to the aforementioned maximum capacity.

Long Thanh Airport is considered one of Vietnam’s most important projects. It will take the pressure off the overloaded Tan Son Nhat International Airport in Ho Chi Minh City and also act as an international transit hub in Southeast Asia.

Data complied by CAPA Centre for Aviation reveals that about $385 billion worth of airport construction projects are either planned or in progress globally, with Asia accounting for about a third. China alone is slated to add 69 regional airports by next year in addition to the 193 that are already operational.

photo credit: freedigitalphotos.net

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.