Opportunities to Promote Vietnam’s Aviation Retail Trade

Opportunities to Promote Vietnam's Aviation Retail Trade

Opportunities to Promote Vietnam’s Aviation Retail Trade

The Aviation Retail Trade Forum provides opportunities for collaboration and experience sharing in developing the aviation, tourism, shopping, and investment attraction industries in light of Vietnam’s strategic location, growing middle class, and efforts to improve airport infrastructure.

Vietnam Aviation Retail Trade Situation

According to an Airports Council International (ACI) report, non-aeronautical revenue has increased and will account for 30-40% of overall revenue at worldwide airports by 2023. This is an encouraging sign that the travel retail and duty-free industries are recovering from the pandemic.

Experts assert that Vietnam’s strategic position in Asia, coupled with its burgeoning tourism growth rate, the expansion of the middle class, and governmental initiatives to enhance airport infrastructure, will not only generate robust economic momentum but also unveil numerous opportunities for the retail and non-aviation services sectors, positioning Vietnam as a promising hub for the aviation trade industry.

PROSPECTS FOR GLOBAL COLLABORATION AND INVESTMENT IN ADVANCING Vietnam’s Aviation Retail Trade

The Trinity Forum 2024, the world’s top aviation retail trade forum co-hosted by Vietnam Airports Corporation – JSC (ACV) and Imex Pan Pacific Group (IPPG), will be held for the first time on November 5-6, 2024, at the Gem Center Convention Centre in Ho Chi Minh City.

The event gathered more than 400 visitors, presenters, industry experts, heads of international airports, and senior officials of the world’s biggest retail and aviation service organizations, such as Avolta,China Duty Free, Qatar Duty Free, Diageo Global Travel, Dubai Duty Free, Lotte Duty Free…

“Vietnam operates 22 airports across the country, including 10 international and 12 domestic. ACV served more than 100 million passengers between 2023 and 2024, with international passengers accounting for more than 30%; total revenue reached more than 800 million USD, a 24% increase over 2022,” Mr. Hung added.

Upgrading infrastructure and passenger experience Promoting Vietnam’s Aviation Retail Trade

Mr. Stefano Baronci, General Director of ACI Asia – Pacific and Middle East, stated during the Forum that the aviation business is progressively recovering after being severely impacted by the Covid-19 outbreak. However, the business continues to face hurdles as a result of the world’s unpredictable condition, which includes ongoing political crises.

In addition, obstacles arise from the Chinese economy’s slowing growth and global tax rules. “Revenue from commercial services at airports has showed signs of development again, but it is still modest, especially in the luxury goods market, which remains in the troubling “red zone,” Mr. Stefano Baronci said.

Opportunities to Promote Vietnam’s Aviation Retail Trade

Mr. Justin Erbacci, General Director of ACI Global, agreed that while the number of air passengers has doubled, the industry’s revenue has not increased as predicted.

“There is still a need for solutions to change infrastructure, improve operational efficiency at airports through solutions such as digitalization to help the supply chain become more efficient, and better meet customer needs,” the general director of ACI commented.

Using artificial intelligence (AI) and other technology to advance Vietnam’s Aviation Retail Trade

According to Mr. Prashant Gaurav Gupta, “the use of technologies like artificial intelligence (AI) will help increase customer interactions when experiencing products and services at the airport.”

However, Mr. Prashant Gaurav Gupta, Commercial Director, Yamuna International Airport Private Limited, stated that airports must now focus more on various client categories in relation to retail trade at airports.