Aviation Sector – Continued Recovery Momentum
Posted: Dec 19, 2025
- Entering 2026, we expect Vietnam’s aviation sector to sustain strong growth momentum and return to its pre-COVID growth trajectory, driven primarily by a sharp rise in international passenger traffic. For the domestic market, we expect passenger volumes to continue rising steadily, supported by a shift toward short-haul travel, alongside improved income prospects following personal income tax reductions.
- Aircraft supply is expected to improve, while ongoing airport capacity expansion should enhance airlines’ operational capability—helping meet rising travel demand. However, we expect competitive pressure among domestic carriers to intensify, as fleet expansion is likely to outpace passenger growth, compounded by new entrants
- On the airport side, private enterprises are accelerating investment in airport facilities, ushering in a new wave of airport development. Long Thanh Airport—a national key project—once operational, is expected to attract a shift in international passenger flows, while supporting domestic airlines in improving operational efficiency and strengthening the sector’s competitive position over the medium to long term.
- Against a favorable outlook, we favor sector leaders with solid earnings growth prospects and attractive valuations, with our top picks for 2026 investment strategy are: HVN & ACV
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