In a proposal submitted to the Ministry of Transport for consideration on Saturday, provincial authorities sought to build a second runway to handle large jets like the Boeing 787, 777 and Airbus A350.
The province also plans to expand the current apron and build a new terminal under a public-private partnership (PPP) model.
Nguyen Tu Cong Hoang, deputy head of Binh Dinh, said Quy Nhon's emergence as a tourism hotspot has resulted in overloading at Phu Cat Airport during national holidays.
By 2025, the airport is expected to receive about 7.5 million passengers and the figure will rise to 12 million in 2030.
Therefore, upgrading airport infrastructure is necessary, Hoang added.
Around 30 kilometers northwest of Quy Nhon, the Phu Cat airport currently has a two-story terminal and a designed capacity of 2.5 million visitors a year and a 3,000-meter-long runway.
It now can serve 600 passengers at a time during peak hours.
Binh Dinh, home to beach town Quy Nhon, a rising star on Vietnam's tourism map, saw four million arrivals in 2019, up 19.8% from the previous year.
Quy Nhon is popular for its sandy beaches with emerald waters and high-end resorts.