Hanoi (VNS/VNA) - Vietnam has seen strong growth in its air transport market over the past decade, jumping from the 11th largest air passenger market in the Asia-Pacific region in 2014 to the eighth largest in 2024, according to the International Air Transport Association (IATA).

It also registered the highest growth rate among the top 10 markets in the region at 121%, driven by the country’s strong economic performance and growing appeal as a travel destination.

Seven of the top 10 international markets for travel to Vietnam more than doubled over the past decade. The IATA’s statistics showed that traffic from India grew tenfold.

The simplification of visa processes and the increase in direct flights – particularly between New Delhi and Mumbai in India and Ho Chi Minh City and Hanoi in Vietnam – have boosted tourism.

Annual trade turnover between Vietnam and India also gained 11% over the past decade, reaching 15 billion USD last year.

Traffic from the Republic of Korea (RoK) also expanded significantly, rising more than five times in the past 10 years. The RoK is by far the largest source of international arrivals for Vietnam, at more than twice that of China, and the second largest source of foreign direct investment in 2024.

Domestic traffic grew at 107%, lagging behind the 150% growth in international traffic during the same period. Domestic traffic in 2024 stood 24% below that in 2022, when domestic travel recovery was in full swing post-pandemic.

This may be due in part to the fact that Vietnamese carriers have faced capacity constraints, with some aircraft grounded due to engine issues, and aircraft capacity being diverted to the fast-growing international segment.

The IATA also pointed out that US tariffs could impact the air cargo sector. Revenue in the sector grew by more than 30% year-on-year in 2024, with passenger revenue still accounting for the bulk of total revenues for Vietnamese carriers at up to 71% of the total.

An increasing propensity for travel and the strengths of Vietnam’s tourism industry will continue to support the longer-term outlook of the aviation sector in the country.

According to Civil Aviation Authority of Vietnam statistics, the country saw double-digit growth in traffic through airports in the first five months of this year, reaching 49 million, up more than 10% over the same period last year.

The number of international passengers reached more than 19 million, up 13%, while domestic passengers dropped by 8% to 30 million./.