Vietnam lawmakers divided on $18.7bn airport; defense minister backs project
Vietnam lawmakers divided on $18.7bn airport; defense minister backs project
Vietnamese lawmakers could not see eye to eye about a proposed megaproject to construct a US$18.7 billion new airport, while the defense minister gave his support as they convened for a debate during the law-making National Assembly sitting on Tuesday.
The group discussion in Hanoi was dedicated to debating the necessity of building Long Thanh International Airport in the eponymous district in the southern province of Dong Nai, around 50km from Ho Chi Minh City.
While some lawmakers supported the project, saying it would indeed help ease the pressure on Tan Son Nhat International Airport – said to be overloaded soon – others showed skepticism about the effectiveness of the pricey facility.
Vietnamese Defense Minister General Phung Quang Thanh, who represents the northern province of Hai Duong, said he agrees if the National Assembly gives in-principle approval to the investment and assigns the transport ministry to develop a feasibility study for it.
General Thanh reiterated an argument by the transport ministry that the current Ho Chi Minh City terminal will become overloaded in 2017, when it reaches the threshold of handling 25 million passengers a year.
He added that Vietnam’s population will rise from 90 million to more than 100 million in the next decade, but the country’s airports are too small compared to those in Thailand, Singapore or Malaysia, which have much larger airports despite their smaller populations.
“The investment is thus essential,” the defense minister said. “If we delay the project now, it will affect the economic development of the country.”
General Thanh said Vietnam currently has stable politics and a growing economy, plus international investors are also interested in the country.
“But our infrastructure is very weak,” he said, adding that the rising number of international tourists also complain about the country’s services and the repeated flight delays and cancelations.
The headline-grabbing Long Thanh project will be implemented in three phases, collectively worth $18.7 billion, according to a report by the transport ministry, which has proposed building it.
The first phase will require more than $7.8 billion, while the respective capital needed for the next two phases is $3.8 billion and $7 billion.
During the first phase, VND21.84 trillion ($1.03 billion) of the required capital will be provided by the government, which is projected to borrow VND47.85 trillion ($2.25 billion) worth of official development assistance loans to cover the sum, according to the report.
“When you do not have sufficient capital, you’ve got to borrow more,” General Thanh said. “If a loan is meant to invest in traffic infrastructure and is payable, that loan is necessary.”
The current land plot zoned for civil aviation at Tan Son Nhat is 590.48 hectares, while 517 hectares are under the management of the Ministry of National Defense, according to the transport ministry’s report. Of the military land plot, 160 hectares are zoned for a golf course.
The General Minister said building a golf course inside the airport is “to create a place for sporting activities and attract tourism, as well as generate jobs and income for the state budget.”
General Thanh said the Tan Son Nhat golf course will create 1,200 stable jobs upon completion and the land plot will be revoked without any compensation whenever the government wishes to reclaim it for national security and defense purposes.
“This is stated clearly in the contract,” he said, adding that only military-run businesses are investing in the golf course.
“The golf course is only a way of making use of the [spare] land plot,” he said.
An airport hub for which countries?
The transport ministry said Long Thanh airport will be a hub for international air transportation, but many lawmakers doubt this will be the case.
“May I ask which countries the airport will be a hub for?” deputy head of the National Assembly Office Nguyen Thanh Hai, who represents the northern province of Hoa Binh, wondered.
The airport is projected to be a hub for airlines offering services to Indonesia, the Philippines and Australia, according to experts.
“But Indonesia and the Philippines already have their own airport hubs, so the Long Thanh terminal can merely be a hub for the long-haul Vietnam-Australia route,” Hai said.
International tourists can also arrive at Long Thanh airport and leave for other localities in Vietnam, but Hai said there are already many international airports nearby, including Tan Son Nhat, Can Tho, Phu Quoc, and Cam Ranh.
“I demand convincing explanations for these issues,” she said. “The National Assembly must be kept clearly informed of the advantages and challenges of this project.”
Hai’s view was echoed by Nguyen Van Hien, a lawmaker from the southern coastal province of Ba Ria-Vung Tau.
“If the National Assembly sees that it is not really necessary to build the airport now, leave it to the next term,” he said.
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