Vietnam Long Thanh Airport Faces Delays and Cost Hikes
Vietnam's Long Thanh airport project faces significant delays and cost increases, threatening its goal to begin first-phase operations this year.
The 336.63 trillion dong (US$13 billion) Long Thanh airport project in Dong Nai province is struggling to meet its goal of beginning first-phase operations this year. Designed to relieve congestion at Tan Son Nhat airport in Ho Chi Minh City, the project is currently hampered by labor and material shortages, payment delays, and a procurement scandal that resulted in the detention of several executives.
Pham Gia Tuc, the Deputy Prime Minister of Vietnam, described the timeline as "highly challenging" given the volume of remaining work. He noted that some contractors and project packages are progressing very slowly, with almost no progress.
In response, the government has ordered the Airports Corporation of Vietnam to resolve outstanding payment issues by the end of October. Authorities in Ho Chi Minh City and Dong Nai province are tasked with addressing land clearance and technical infrastructure. While the airport aims for an eventual capacity of 100 million passengers annually, critical rail links to the commercial hub are not expected for several years.
