Vietnam’s fast-growing aviation market is drawing new players and renewed foreign interest. This evolution underscores the country’s emergence as one of Asia’s most competitive travel frontiers.
Startup Sun PhuQuoc Airways will begin commercial operations on November 1. Backed by resort conglomerate Sun Group, the airline will leverage the group’s luxury resorts, theme parks, and real estate developments to build integrated travel packages.
Phu Quoc island to become a world class destination thanks to air links
“Our focus is on connecting destinations within our ecosystem and attracting more visitors, especially to Phu Quoc Island,” CEO Nguyen Manh Quan said. “We want to elevate Phu Quoc to the same international level as Phuket, Bali, or Jeju.”
The carrier has plans to acquire 100 Airbus and Boeing jets within five years as part of an ambitious expansion targeting the country’s booming tourism sector. The new full-service carrier expects to serve at least 20 million passengers and generate annual revenue of about US$2 billion by 2030, according to Quan.
Initially, Sun PhuQuoc will operate domestic routes linking Phu Quoc with Hanoi and Ho Chi Minh City. It then plans to expand to South Korea, Singapore, and Taiwan in 2026. Plans areEurope, the Middle East, and the United States by 2027. Its fleet plan includes 60 Airbus narrowbody aircraft and 40 Boeing 787-9 and 787-10 Dreamliners by the end of the decade.
The airline will face intense competition from Vietnam two air giants, Vietnam Airlines and VietJet. Both have massive scale and market share while getting airport’s slots are not easy given increasingly slot constraints.”
Other players such as Bamboo Airways and Vietravel Airlines have struggled to gain ground, with Bamboo recently downsizing and Vietravel still operating a small fleet.
A potential comeback for “AirAsia Vietnam” ?
However, Vietravel Airlines might carve its way to growth. Tony Fernandes, CEO of Malaysia’s Capital A Bhd., the parent company of AirAsia, is reportedly in early-stage talks to acquire a minority stake in the carrier. The move would mark AirAsia’s long-awaited entry into Vietnam, where foreign ownership of carriers is capped at 34%.
“We’re down to a few more terms and then ready to execute a term sheet,” Fernandes said on the sidelines of the Forbes Global CEO Conference in Jakarta. He has long described Vietnam as “one of the most promising countries in the region” for AirAsia, noting its large population, rising middle class, and strategic location in Southeast Asia.
AirAsia already tried 4 times in the past to get entry into the Vietnamese market. Previous attempts date back to 2005 with Pacific Airlines, 2007 with Vinashin, and 2010 with VietJet, all of which were unsuccessful due to various issues.
Latest attempt was in 2019, when AirAsia terminated a proposed joint venture arrangement with Gumin Co. and Hai Au Aviation JSC. If completed, the potential partnership between AirAsia and Vietravel would add yet another contender to Vietnam’s crowded aviation scene.
SunPhuQuoc launch and potential entry of AirAsia come amid amid record tourism growth. Vietnam welcomed 15.4 million international visitors in the first nine months of 2025, a 21.5% increase year-on-year, and aims for 25 million by year’s end. According to UN Tourism, Vietnam emerges in 2025 as the world’s fastest-growing tourism destination.
