Vietnam Aviation Comprehensive Report Q2/2019
VIETNAM AVIATION INDUSTRY
Demand for customer and cargo transport in 2018 grew worldwide, but at the lowest rate in the last 4 years. The growth rate in the number of customers in 2018 was about 6.1%, which was equivalent to the average of the last 5 years, but lower than the strong growth of 2017 (7.2%). The global domestic air travel in 2018 increased 7.0% over 2017. In general, all markets witnessed growth, especially the Indian and Chinese markets.
According to data published by IATA, Vietnam is in the group of 5 markets with passengers traveling by air. The revenue of aviation industry continued to grow strongly over the years, the average growth rate in the period of 2010-2018 reached 15.5%.
Vietnam aviation industry has a low level of competition when the number of participating firms is much lower than other countries in the region. The number of Vietnamese planes continuously increased over the years with CAGR of 9.3% in the period of 2011-2018 . In Q1/2019, VietJet Air ranked first in the number of flights operated with 374 flights per day, rising 15% over the same period last year.
The number of flights operated in Q1/2019 grew 9% over the same period in 2018 thanks to the entry of Bamboo Airline. In Q1/2019, the airlines' OTP punctuality dropped sharply, whose reason was attributed to the weather and technical problems of the airlines.
2018 was a special year when domestic airlines' growth rates all achieved higher than 2-digit due to the booming demand of passengers. According to VIRAC's estimates, in the period of 2017-2023, the annual growth rate of air passengers will reach 10.9%.
Demand for customer and cargo transport in 2018 grew worldwide, but at the lowest rate in the last 4 years. The growth rate in the number of customers in 2018 was about 6.1%, which was equivalent to the average of the last 5 years, but lower than the strong growth of 2017 (7.2%). The global domestic air travel in 2018 increased 7.0% over 2017. In general, all markets witnessed growth, especially the Indian and Chinese markets.
According to data published by IATA, Vietnam is in the group of 5 markets with passengers traveling by air. The revenue of aviation industry continued to grow strongly over the years, the average growth rate in the period of 2010-2018 reached 15.5%.
Vietnam aviation industry has a low level of competition when the number of participating firms is much lower than other countries in the region. The number of Vietnamese planes continuously increased over the years with CAGR of 9.3% in the period of 2011-2018 . In Q1/2019, VietJet Air ranked first in the number of flights operated with 374 flights per day, rising 15% over the same period last year.
The number of flights operated in Q1/2019 grew 9% over the same period in 2018 thanks to the entry of Bamboo Airline. In Q1/2019, the airlines' OTP punctuality dropped sharply, whose reason was attributed to the weather and technical problems of the airlines.
2018 was a special year when domestic airlines' growth rates all achieved higher than 2-digit due to the booming demand of passengers. According to VIRAC's estimates, in the period of 2017-2023, the annual growth rate of air passengers will reach 10.9%.
ABBREVIATION
EXECUTIVE SUMMARY
1. BUSINESS ENVIRONMENT
1.1 Macroeconomic situation
1.2 Legal framework
1.3 Trade agreements
2. WORLD AVIATION INDUSTRY
2.1 Development history of the industry
2.2 Current situation of industry development
2.3 Top largest airlines in the world
2.4 Top countries having typical airlines in the world
3. VIETNAM AVIATION INDUSTRY
3.1 Development history of the industry
3.2 Value chain of aviation industry
3.3 Industry scale
3.4 Current situation of aviation industry in Vietnam
3.4.1 Air transport situation
3.4.2 Current situation of airports
4. RISKS, DRIVING FORCES AND CHALLENGES
4.1 Industry risks
4.2 Driving forces
4.3 Challenges
4.4 5-forces analysis
5. PLANNING AND FORECAST
5.1 Industry planning
5.2 Forecast
6. ENTERPRISE ANALYSIS
6.1 Top 10 enterprises
6.2 Business indicators
6.3 Financial indicators
6.4 Payment indicators
7. APPENDIX OF FINANCIAL STATEMENTS
EXECUTIVE SUMMARY
1. BUSINESS ENVIRONMENT
1.1 Macroeconomic situation
1.2 Legal framework
1.3 Trade agreements
2. WORLD AVIATION INDUSTRY
2.1 Development history of the industry
2.2 Current situation of industry development
2.3 Top largest airlines in the world
2.4 Top countries having typical airlines in the world
3. VIETNAM AVIATION INDUSTRY
3.1 Development history of the industry
3.2 Value chain of aviation industry
3.3 Industry scale
3.4 Current situation of aviation industry in Vietnam
3.4.1 Air transport situation
3.4.2 Current situation of airports
4. RISKS, DRIVING FORCES AND CHALLENGES
4.1 Industry risks
4.2 Driving forces
4.3 Challenges
4.4 5-forces analysis
5. PLANNING AND FORECAST
5.1 Industry planning
5.2 Forecast
6. ENTERPRISE ANALYSIS
6.1 Top 10 enterprises
6.2 Business indicators
6.3 Financial indicators
6.4 Payment indicators
7. APPENDIX OF FINANCIAL STATEMENTS
LIST OF TABLES
Table 1: For flights across Vietnamese airspace
Table 2: For flights across Vietnam’s airspace and notification zone under Vietnamese tracking
Table 3: Table comparing some input costs between the LCC and FSC models
Table 4: Top 10 passenger airlines (according to RPK), 2017
Table 5: Top 10 cargo airlines (according to FTK), 2017
Table 6: Top 15 largest air cargo carriers in the world, 2016 - 2017
Table 7: Aviation services
Table 8: Top 10 world's largest airlines, 2018
Table 9: Top largest aviation passenger markets, 2017
Table 10: Flight fleet HVN, 2018
Table 11: VietJet Air fleet, 2018
Table 12: The world's top 10 punctual airlines, 2018
Table 13: Average occupancy rate, 2010 - 2018
Table 14: List of airports in Vietnam
Table 15: Chain of services and businesses in the airline service group
Table 16: Enterprises providing airport cargo terminal services in Vietnam
Table 17: Projects of upgrading airport infrastructure in Vietnam
Table 18: Visa exemption policy of Vietnam, 2018
Table 19: Growth rate, 2007 - 2030
Table 20: Transport volume of airlines in Vietnam, 2007 - 2030
Table 21: International routes having the largest passenger volume, 2035
Table 22: Top typical businesses in the industry in 2018
Table 23: Vietnam Airlines flight routes 2016-2018
Table 1: For flights across Vietnamese airspace
Table 2: For flights across Vietnam’s airspace and notification zone under Vietnamese tracking
Table 3: Table comparing some input costs between the LCC and FSC models
Table 4: Top 10 passenger airlines (according to RPK), 2017
Table 5: Top 10 cargo airlines (according to FTK), 2017
Table 6: Top 15 largest air cargo carriers in the world, 2016 - 2017
Table 7: Aviation services
Table 8: Top 10 world's largest airlines, 2018
Table 9: Top largest aviation passenger markets, 2017
Table 10: Flight fleet HVN, 2018
Table 11: VietJet Air fleet, 2018
Table 12: The world's top 10 punctual airlines, 2018
Table 13: Average occupancy rate, 2010 - 2018
Table 14: List of airports in Vietnam
Table 15: Chain of services and businesses in the airline service group
Table 16: Enterprises providing airport cargo terminal services in Vietnam
Table 17: Projects of upgrading airport infrastructure in Vietnam
Table 18: Visa exemption policy of Vietnam, 2018
Table 19: Growth rate, 2007 - 2030
Table 20: Transport volume of airlines in Vietnam, 2007 - 2030
Table 21: International routes having the largest passenger volume, 2035
Table 22: Top typical businesses in the industry in 2018
Table 23: Vietnam Airlines flight routes 2016-2018
LIST OF FIGURES
Figure 1: GDP growth by quarter, 2016 - 2019
Figure 2: Transportation and warehousing’s contribution to GDP, 2013 - 3/2019
Figure 3: VND/USD exchange rate, 1/2013 – 3/2019
Figure 4: Disposable income and household expenditure, 2010 – 2017e
Figure 5: World crude oil prices, 1/2011 - 3/2019
Figure 6: Tourist arrivals to Vietnam, 2010-2018e
Figure 7: Commodities import - export, 2016 – Q1/2019
Figure 8: The average price of crude oil and petrol in the years 2011 - 2018e
Figure 9: Global aviation industry revenue, 2010 - 2019f
Figure 10: Structure of aviation industry by sector, 2018
Figure 11: Revenue of the world passenger transport segment, 2017
Figure 12: Revenue structure of auxiliary services, 2017
Figure 13: The number of customers is not, 2012 - 2018
Figure 14: Growth rate of RPK, FTK, 2012 - 2018
Figure 15: Growth rate of aviation passenger transportation market by region, 2018
Figure 16: Passenger revenue structure of the whole industry per km (RPKs), 2017 - 2018
Figure 17: Domestic passenger transportation market growth in some countries, 2017 - 2018
Figure 18: Loading coefficient, 2012 - 2018
Figure 19: Tourism criteria and aviation commercial goods value, 2012 - 2017
Figure 20: Number of airports connected and real transportation costs, 2012 - 2018
Figure 21: Accident rate/1 million flights by region, 2018
Figure 22: Growth of freight routes between regions, 2007 - 2037f
Figure 23: Growth of CAGR of commodity groups with world air transport, 2006 - 2016
Figure 24: Structure of aircraft type used in air cargo routes, 2018e
Figure 25: Revenue of non-regional port industry, 2016
Figure 26: Cargo output by regional airports, 2016
Figure 27: Top 10 airports with the largest number of passengers through the world, 2016
Figure 28: Number of air travel passengers in the U.S, 2010 - 2017
Figure 29: Number of air travel passengers in China, 2010 - 2017
Figure 30: Number of aircraft required in China for the next 20 years
Figure 31: Number of air travel passengers in India, 2010 - 2017
Figure 32: Number of air travel passengers in Japan, 2010 - 2017
Figure 33: Capital and fixed assets in the airline passenger transport, 2010-2017
Figure 34: Aviation revenue, 2010 - 2017
Figure 35: Sales revenue, 2010 - 2018e
Figure 36: Revenue structure by sales channel, 2010 - 2018
Figure 37: Number of airlines in some ASEAN countries, 2018
Figure 38: Fuel consumption of aircraft lines, 2018
Figure 39: Cost/seat according to listed aircraft prices, 2018
Figure 40: Domestic aviation market share in Vietnam, 2018
Figure 41: Other international shipping market share, 2018
Figure 42: Market share of domestic air cargo transport by volume, 2017
Figure 43: Market share of international air cargo transport by volume, 2017
Figure 44: Proportion of using passenger transport vehicles, 2013-2018
Figure 45: Proportion of using goods transport vehicles, 2012 - 2018
Figure 46: Number of Vietnamese aircraft, 2011 - 2018e
Figure 47: Aircraft structure by type, 4/2018
Figure 48: Growth of tourists over the years, 2012 - 2018e
Figure 49: Domestic market share, 2011 - 2018e
Figure 50: Number of flights operated, 2014 - Q1/2019
Figure 51: Proportion of flights operated by airline, Q1/2019
Figure 52: The proportion of flights taking off on time, Q1/2019
Figure 53: The cause group took off on time, Q1/2019
Figure 54: Causes of cancellations, Q1/2019
Figure 55: Structure according to the causes of non-punctual take-off of each firm, Q1/2019
Figure 56: Cancellation structure according to the causes of each firm, Q1/2019
Figure 57: Market share of airport capacity, 2017
Figure 58: Market share by enterprises providing cargo terminal services at Noi Bai airport, 2017
Figure 59: Market share by enterprises providing cargo terminal services at Tan Son Nhat airport, 2017
Figure 60: Non-aeronautical revenue/customers of some regional airports, 2017
Figure 61: Passenger scale of some airports in the region, 2017
Figure 62: Revenue of some airports in the region, 2017
Figure 63: Total population and population structure in working age period 2010 - 2018
Figure 64: Forecast of growth in tourism spending in Vietnam over the period, 2010 - 2027f
Figure 65: Proportion of people using aviation services, 2016
Figure 66: Air travel passenger growth forecast, 2011 - 2023f
Figure 67: Increase the number of customers of Vietnam Airlines 2013-2018
Figure 68: Network routes, 2011 - 2018
Figure 69: Growth in passenger volume of VietJet, 2013 - 2019e
Figure 70: Shareholder structure ACV, 2018
Figure 71: SCSC shareholder structure, 2018
Figure 72: NCTS shareholder structure, 2018
Figure 73: SAGS shareholder structure, 2018
Figure 74: SASCO shareholder structure, 2018
Figure 75: Shareholder structure of TASECO Airs, 2018
Figure 76: NASCO shareholder structure, 2018
Figure 77: CIAS shareholder structure, 2018
Figure 78: NCS Shareholder structure, 2018
Figure 79: MASCO Shareholder structure, 2018
Figure 80: Net revenue of transport and airport groups, 2017 - 2018
Figure 81: Net revenue from aviation and cargo service groups, 2017 - 2018
Figure 82: Revenue structure VJC, 2018
Figure 83: Revenue structure HVN, 2018
Figure 84: Gross profit and gross profit margin, 2017 - 2018
Figure 85: Self-financing rate, 2017 - 2018
Figure 86: Selling expenses, 2017 - 2018
Figure 87: Administrative expenses, 2017 - 2018
Figure 88: Asset turnover, 2018
Figure 89: Inventory turnover, 2018
Figure 90: Figure 10: Receivable turnover, 2018
Figure 91: Rate of return, 2017 - 2018
Figure 92: Payment index, 2017 - 2018
Figure 1: GDP growth by quarter, 2016 - 2019
Figure 2: Transportation and warehousing’s contribution to GDP, 2013 - 3/2019
Figure 3: VND/USD exchange rate, 1/2013 – 3/2019
Figure 4: Disposable income and household expenditure, 2010 – 2017e
Figure 5: World crude oil prices, 1/2011 - 3/2019
Figure 6: Tourist arrivals to Vietnam, 2010-2018e
Figure 7: Commodities import - export, 2016 – Q1/2019
Figure 8: The average price of crude oil and petrol in the years 2011 - 2018e
Figure 9: Global aviation industry revenue, 2010 - 2019f
Figure 10: Structure of aviation industry by sector, 2018
Figure 11: Revenue of the world passenger transport segment, 2017
Figure 12: Revenue structure of auxiliary services, 2017
Figure 13: The number of customers is not, 2012 - 2018
Figure 14: Growth rate of RPK, FTK, 2012 - 2018
Figure 15: Growth rate of aviation passenger transportation market by region, 2018
Figure 16: Passenger revenue structure of the whole industry per km (RPKs), 2017 - 2018
Figure 17: Domestic passenger transportation market growth in some countries, 2017 - 2018
Figure 18: Loading coefficient, 2012 - 2018
Figure 19: Tourism criteria and aviation commercial goods value, 2012 - 2017
Figure 20: Number of airports connected and real transportation costs, 2012 - 2018
Figure 21: Accident rate/1 million flights by region, 2018
Figure 22: Growth of freight routes between regions, 2007 - 2037f
Figure 23: Growth of CAGR of commodity groups with world air transport, 2006 - 2016
Figure 24: Structure of aircraft type used in air cargo routes, 2018e
Figure 25: Revenue of non-regional port industry, 2016
Figure 26: Cargo output by regional airports, 2016
Figure 27: Top 10 airports with the largest number of passengers through the world, 2016
Figure 28: Number of air travel passengers in the U.S, 2010 - 2017
Figure 29: Number of air travel passengers in China, 2010 - 2017
Figure 30: Number of aircraft required in China for the next 20 years
Figure 31: Number of air travel passengers in India, 2010 - 2017
Figure 32: Number of air travel passengers in Japan, 2010 - 2017
Figure 33: Capital and fixed assets in the airline passenger transport, 2010-2017
Figure 34: Aviation revenue, 2010 - 2017
Figure 35: Sales revenue, 2010 - 2018e
Figure 36: Revenue structure by sales channel, 2010 - 2018
Figure 37: Number of airlines in some ASEAN countries, 2018
Figure 38: Fuel consumption of aircraft lines, 2018
Figure 39: Cost/seat according to listed aircraft prices, 2018
Figure 40: Domestic aviation market share in Vietnam, 2018
Figure 41: Other international shipping market share, 2018
Figure 42: Market share of domestic air cargo transport by volume, 2017
Figure 43: Market share of international air cargo transport by volume, 2017
Figure 44: Proportion of using passenger transport vehicles, 2013-2018
Figure 45: Proportion of using goods transport vehicles, 2012 - 2018
Figure 46: Number of Vietnamese aircraft, 2011 - 2018e
Figure 47: Aircraft structure by type, 4/2018
Figure 48: Growth of tourists over the years, 2012 - 2018e
Figure 49: Domestic market share, 2011 - 2018e
Figure 50: Number of flights operated, 2014 - Q1/2019
Figure 51: Proportion of flights operated by airline, Q1/2019
Figure 52: The proportion of flights taking off on time, Q1/2019
Figure 53: The cause group took off on time, Q1/2019
Figure 54: Causes of cancellations, Q1/2019
Figure 55: Structure according to the causes of non-punctual take-off of each firm, Q1/2019
Figure 56: Cancellation structure according to the causes of each firm, Q1/2019
Figure 57: Market share of airport capacity, 2017
Figure 58: Market share by enterprises providing cargo terminal services at Noi Bai airport, 2017
Figure 59: Market share by enterprises providing cargo terminal services at Tan Son Nhat airport, 2017
Figure 60: Non-aeronautical revenue/customers of some regional airports, 2017
Figure 61: Passenger scale of some airports in the region, 2017
Figure 62: Revenue of some airports in the region, 2017
Figure 63: Total population and population structure in working age period 2010 - 2018
Figure 64: Forecast of growth in tourism spending in Vietnam over the period, 2010 - 2027f
Figure 65: Proportion of people using aviation services, 2016
Figure 66: Air travel passenger growth forecast, 2011 - 2023f
Figure 67: Increase the number of customers of Vietnam Airlines 2013-2018
Figure 68: Network routes, 2011 - 2018
Figure 69: Growth in passenger volume of VietJet, 2013 - 2019e
Figure 70: Shareholder structure ACV, 2018
Figure 71: SCSC shareholder structure, 2018
Figure 72: NCTS shareholder structure, 2018
Figure 73: SAGS shareholder structure, 2018
Figure 74: SASCO shareholder structure, 2018
Figure 75: Shareholder structure of TASECO Airs, 2018
Figure 76: NASCO shareholder structure, 2018
Figure 77: CIAS shareholder structure, 2018
Figure 78: NCS Shareholder structure, 2018
Figure 79: MASCO Shareholder structure, 2018
Figure 80: Net revenue of transport and airport groups, 2017 - 2018
Figure 81: Net revenue from aviation and cargo service groups, 2017 - 2018
Figure 82: Revenue structure VJC, 2018
Figure 83: Revenue structure HVN, 2018
Figure 84: Gross profit and gross profit margin, 2017 - 2018
Figure 85: Self-financing rate, 2017 - 2018
Figure 86: Selling expenses, 2017 - 2018
Figure 87: Administrative expenses, 2017 - 2018
Figure 88: Asset turnover, 2018
Figure 89: Inventory turnover, 2018
Figure 90: Figure 10: Receivable turnover, 2018
Figure 91: Rate of return, 2017 - 2018
Figure 92: Payment index, 2017 - 2018
