Vietnam overtakes Thailand as Southeast Asia's second-largest aviation market

HANOI, Vietnam – Vietnam has surpassed Thailand to become Southeast Asia's second-largest commercial aviation market by available seats in August, according to OAG, a global provider of aviation data and analytics, marking a significant milestone in the country's aviation sector recovery and expansion. Vietnam moved into second place with 7.3 million seats, up 10 percent from a year earlier, representing the fastest growth rate among Southeast Asian aviation markets, while Thailand ranked third with 7.2 million seats, down 1.7 percent year on year, and Indonesia remained the region's largest aviation market with 11 million seats, up 4.3 percent.

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The increase reflected rising travel demand in Vietnam, as well as the advantage of a market with several major airports serving passengers across different parts of the country, according to OAG, which also highlighted cooperation between Vietnamese tourism businesses and airlines as a key factor, with tour operators often booking large blocks of seats and running joint promotional and marketing campaigns that helped airlines fill flights more quickly, while the development of new destinations was creating more room for Vietnam's international air network to expand.

Total airline capacity in Southeast Asia increased by 0.8 percent year on year to 51 million seats in August, with domestic capacity rising by 1.4 percent and accounting for 45 percent of the region's commercial aviation market, while international capacity was almost unchanged, increasing by 0.4 percent to 28.2 million seats and accounting for 55 percent of the market. The growth in capacity comes as passenger traffic through Vietnam's airports continues to rise, with more than 76 million passengers passing through the country's airports between January and July, up 7 percent from the same period last year, according to the Civil Aviation Authority of Vietnam.

International travel was the strongest growth driver, with nearly 30 million passengers, an increase of more than 11 percent year on year, almost three times the growth rate of domestic travel, which exceeded 46 million passengers, up more than 4 percent. Vietnamese airlines carried nearly 35 million passengers during the seven-month period, up more than 3 percent year on year, with international passengers accounting for more than 11 million, up 1 percent, while domestic passengers exceeded 23 million, rising more than 4 percent.

The CAAV expects Vietnam's aviation sector to serve about 94 million passengers and handle 1.6 million tonnes of cargo in 2026, representing year-on-year increases of 13 percent and 9.3 percent, respectively, and to support these targets, aviation authorities plan to optimise runway scheduling, improve airport operational efficiency, and strengthen oversight of airline operations to maintain aviation safety. The regulator will also support airlines in expanding their fleets and increasing capacity, particularly during peak travel periods, while continuing to work with foreign aviation authorities to facilitate additional international routes and monitoring global economic conditions, geopolitical developments, and fuel price fluctuations that could affect the aviation market.

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Infrastructure development is another priority, with authorities accelerating major airport planning and construction projects and preparing to reopen Lien Khuong Airport and Ca Mau Airport following upgrades, while also advancing preparations for the future operation of Long Thanh International Airport and Quang Tri Airport, which are expected to expand Vietnam's long-term aviation capacity and support continued market growth. The country's rise to second place in the regional rankings underscores the resilience and dynamism of Vietnam's aviation sector, which has rebounded strongly from the pandemic and continues to benefit from a growing middle class, increasing tourism arrivals, and strategic investments in airport infrastructure.