In addition to reducing airfares to a reasonable level, localities in general and Binh Dinh province in particular need to proactively coordinate with relevant agencies and units to have comprehensive solutions to promote local tourism - Photo: TTO
According to the Ministry of Construction , fluctuations in air transport service prices are basically affected by two main reasons: Fluctuations in cost-forming factors and fluctuations in market supply and demand.
Flight fuel costs are affected by foreign exchange rates.
Specifically, in the cost structure of a flight, the cost of fuel and the cost of renting, purchasing, repairing and maintaining aircraft account for 70%-80% of the total cost. At the same time, almost all of these costs are paid in foreign currency and are directly affected by exchange rate fluctuations.
Meanwhile, jet fuel prices and exchange rates are two cost factors that are greatly affected by the domestic and international macroeconomic and political situation, beyond the control of airlines and specialized management agencies.
The Ministry of Construction said that the current developments in Jet A1 prices and exchange rates continue to put pressure on the costs of Vietnamese airlines as 80% of their costs are paid in foreign currency and are directly affected by exchange rate fluctuations.
According to the latest data, on June 23, 2025, Jet A1 price increased to 86.4 USD/barrel, breaking the downward trend that has lasted from 2022 to present.
Regarding exchange rates, from 2021 to present, the USD/VND exchange rate has been on a strong upward trend. According to updated information from Vietcombank, in June 2025, the USD/VND exchange rate is establishing a historical peak (the selling rate of 1 USD is 26,220 VND), fluctuating by 2.78% compared to the same period in 2024 and increasing by 12.43% compared to the same period in 2022.
Regarding the supply and demand of the domestic air passenger transport market, the Ministry of Construction affirmed that airfares, like the prices of most other goods and services on the market, operate according to the law of supply and demand.
This is even more evident during peak periods (holidays, Tet, long breaks), on some domestic flights in Vietnam, airfares are higher than usual when passenger travel demand increases, while the number of seats provided by Vietnamese airlines is limited due to the dependence on the number of aircraft and operating conditions.
In order to reduce airfares to a reasonable and stable level to enhance the competitiveness of Vietnam's tourism, recently, the Ministry of Transport (now the Ministry of Construction) issued Decision No. 1723/QD-BGTVT dated December 31, 2024 promulgating the maximum price for basic economy class domestic air passenger transport services sold within Vietnam.
Do not exceed the maximum price specified
Accordingly, Vietnamese airlines have built flexible ticket prices with many price ranges from low to high depending on the market situation (supply - demand), ticket conditions, ticket issuance time, service quality... ensuring that they do not exceed the prescribed maximum price.
The Ministry of Construction has also directed the Civil Aviation Authority of Vietnam to deploy solutions aimed at supplementing and balancing the supply capacity between domestic and international routes of Vietnamese airlines, supporting airlines to increase their operating capacity, in accordance with market times.
Key solutions are implemented by state management agencies through coordination, management, and effective implementation of operational plans; supporting and facilitating airlines to add aircraft, increase transport forces and load supply on routes; at the same time, implementing assessments and adjustments, adding appropriate flights on key routes, optimizing the response to passenger demand during peak periods.
The Ministry of Construction affirmed that the implemented solutions have brought positive results to the aviation market in recent times.
Specifically for the entire market, in the first 5 months of 2025, Vietnamese airlines regularly operated 58 regular domestic routes, carried out about 89,000 flights and the domestic passenger volume through airports reached 30.4 million passengers; corresponding to an increase of 1 route, more than 5,000 flights and 8.8% in domestic passengers through airports compared to the same period last year.
At Phu Cat Airport (Binh Dinh) alone, in the first 5 months of 2025, Vietnamese airlines maintained regular flights connecting to Hanoi and Ho Chi Minh City, carrying out more than 3,300 flights and passenger volume through the port reaching more than 532,000 passengers, an increase of more than 100 flights and 1% in passengers through the port compared to the same period last year.
According to the Ministry of Construction, developing and attracting tourists is a comprehensive issue, linking many sectors and fields from visa procedures, local tourism promotion policies, service quality, connections between travel companies and businesses providing food, hotels, transportation, etc.
The main driving force to attract and stimulate tourism must come from local tourism policies. For domestic tourism, aviation is only one of the modes of transportation. Passengers can choose other modes of transportation such as rail, road, and inland waterway.
"Therefore, in addition to reducing airfares to a reasonable level, localities in general and Binh Dinh province in particular need to proactively coordinate with relevant agencies and units to have comprehensive solutions to promote local tourism such as: communication work, improving service quality and policies on accommodation costs, entertainment costs, food and drink, transportation, etc.," the Ministry of Construction's dispatch stated.
Phan Trang
Source: https://baochinhphu.vn/bo-xay-dung-tra-loi-ve-viec-ha-gia-ve-may-bay-102250630100135924.htm
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