Vietnam's air freight industry accelerates despite COVID pandemic

Vietnam’s air cargo industry is pushing through the coronavirus pandemic and other headwinds in the global economy, with the number of flights picking up and a new homegrown freight carrier set to take to the skies. The Southeast Asian nation's 2022 air cargo traffic is expected to grow 17% from last year to more than 1.52m tons, according to local media, accelerating beyond average annual expansion of 15% over the last 30 years. That comes amid surging demand for domestic and overseas freight as Vietnam cements its position in global supply chains for everything from electronics to clothing, with its overall exports jumping nearly 20% to about $336b in 2021. Major cargo operators such as Germany's DHL Express and Japan's ANA Holdings have increasingly been targeting the country. "March was a record in terms of volume handled," said a senior executive at a major foreign logistics company with a facility in the capital, Hanoi. "Even with the COVID pandemic, you can really feel the momentum of Vietnam." Growing appetite has pushed up the cost of exporting by plane, however, with several industry insiders saying such air freight rates are still two to four times higher than pre-COVID levels. One of Vietnam's biggest conglomerates, IMEX Pan Pacific Group, is looking to land some fresh business through its IPP Air Cargo subsidiary, which it expects to begin operating by year-end as Vietnam's first company specialized in air freight.<br/>