Vietnam Airlines considers creating cargo unit to boost revenue

Vietnam Airlines is looking to boost growth by starting a dedicated cargo unit, according to a company official.

With companies such as Samsung annually producing billions of dollars worth of devices, there is an air freight opportunity for the national carrier, Vietnam Airlines CEO Duong Tri Thanh told Bloomberg Television.

Investments by companies such as Samsung, LG and Nestle have fueled the country's manufacturing sector and driven it to become one of the fastest growing in the region. 

Vietnam’s economy expanded by 7.38 percent in the first quarter of this year, the highest rate in a decade, according to the General Statistics Office. The country is looking to attract more visitors and develop tourism as a key industry.

“We expect a higher number of international passengers, especially from Japan and Korea, and more middle-class passengers domestically, thanks to Vietnam’s fast economic growth,” Thanh said.

The airline was rated among the 11 best major airlines in Asia by the 2018 Traveler's Choice Awards, which collects travelers' ratings from the past year in terms of legroom, customer service, cleanliness, food and beverages, comfort, value for money, check-in and boarding, and in-flight entertainment.

Competing with the nation’s largest private carrier, VietJet, the state-owned airline is also focusing on attracting premium passengers at the front-end as faster economic growth drives incomes higher.

Vietnam Airlines is planning a route to Los Angeles by late 2019 or early 2020. Last year, it formed a venture with Air France to add 17 more destinations in Europe to the existing three.