Vietnam to expand Hanoi's international airport for $5.5 bln

By Toan Dao, Reuters   May 31, 2016 | 08:19 am GMT+7
Vietnam to expand Hanoi's international airport for $5.5 bln
Noi Bai International Airport. Photo by VnExpress/Anh Quan

Vietnam is planning a $5.5 billion expansion of Hanoi’s airport to double its capacity by 2030, the government news website reported late Monday.

The expansion will be located on an area of 720 hectares opposite the existing Noi Bai International Airport on the other side of the Vo Nguyen Giap Road. It will double the capacity of the current airport to 50 million passengers per year by 2030. 

The expansion is urgent as Noi Bai is expected to face overload in the next few years, Lai Xuan Thanh, Director of the Civil Aviation Authority of Vietnam (CAAV), said in the statement.

Vietnam's air passenger traffic grew 7.9 per cent last year to 20.7 million, while growth in the first five months of 2016 leaped 30.9 per cent to 17 million, government data showed.

Construction cost for the expansion amounts to $3.5 billion. The cost for site clearance, compensation and resettlement for residents affected by the project is estimated at $2 billion.

CAAV will work with the government of Hanoi on details of the scheme and will seek for approval from the central government, Thanh said.

The National Assembly in June last year approved a plan to build Long Thanh International Airport in the country’s south to reduce the overload at Tan Son Nhat International Airport in Ho Chi Minh City. The new airport, which is expected to receive 100 million passengers by 2050, is estimated to cost more than $16 billion in three phases of construction.