A range of factors are still hindering recovery and development in the aviation sector this year but analysts are also optimistic about the opportunities.

Although the economy has seen some degree of recovery and flights have gradually been restored, the core business activities of airlines are still to be profitable. “The international market, which accounts for about 65 per cent of Vietnam Airlines’ revenue, is recovering very slowly,” a leader from the national flag carrier said in discussing results in the first quarter. The latest financial statements from the FLC Group, owner of Bamboo Airways, report a first-quarter after-tax loss of VND465 billion ($20 million), of which nearly VND265 billion ($11.4 million) is from Bamboo Airways.

Mr. Dinh Viet Thang, Director of the Civil Aviation Authority of Vietnam, shared his thoughts on the challenges that the aviation sector is facing. First, the market is showing signs of recovery but only in the domestic market. Second, securing capital for post-Covid-19 development is a major challenge for carriers. Third, there have been significant changes in human resources. And fourth, fuel prices have spiraled upwards and show no signs of slowing.

However, according to analysts, there are still opportunities for the sector to see breakthroughs given that Vietnam has adapted safely and effectively to the pandemic. Mr. Vu Thanh Hung, CEO of iPOS.vn - a provider of specialized technology management solutions for the F&B industry - has great expectations from the latest tourism push and the irresistible attraction of Vietnam’s night economy.

Professor Tran Tho Dat, Chairman of the Science and Training Council at the National Economics University, said aviation will lead the recovery, with a series of domestic and international routes being restored or expanded. It is also necessary to create a link in the aviation, tourism, and service value chain. When the economy recovers, jobs and incomes will increase, and demand for tourism and air travel, which has declined, will bounce back.