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Việt Nam moved into second place with 7.3 million seats, up 10 per cent from a year earlier, the fastest growth rate among the Southeast Asian aviation markets analysed by OAG.

HÀ NỘI — Việt Nam has overtaken 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.

Việt Nam moved into second place with 7.3 million seats, up 10 per cent from a year earlier, the fastest growth rate among the Southeast Asian aviation markets analysed by OAG.

The increase reflected rising travel demand in Việt Nam, as well as the advantage of a market with several major airports serving passengers across different parts of the country, OAG said.

Another factor highlighted by OAG was cooperation between Vietnamese tourism businesses and airlines. Tour operators often booked large blocks of seats and ran joint promotional and marketing campaigns, helping airlines fill flights more quickly.

The development of new destinations was also creating more room for Việt Nam's international air network to expand.

Thailand ranked third with 7.2 million seats, down 1.7 per cent year on year.

In its August Southeast Asia Aviation Market Briefing, OAG said Indonesia remained the region's largest aviation market, with 11 million seats, up 4.3 per cent year on year.

Capacity also declined in Malaysia and the Philippines, with 5.4 million and 4.8 million seats, down 6.4 per cent and 5.7 per cent, respectively.

Total airline capacity in Southeast Asia increased by 0.8 per cent year on year to 51 million seats in August, OAG said. Domestic capacity rose by 1.4 per cent and accounted for 45 per cent of the region's commercial aviation market, while international capacity was almost unchanged, increasing by 0.4 per cent to 28.2 million seats and accounting for 55 per cent of the market.

The growth in capacity comes as passenger traffic through Việt Nam's airports continues to rise. More than 76 million passengers passed through the country's airports between January and July, up 7 per cent from the same period last year, according to the Civil Aviation Authority of Vietnam (CAAV).

International travel was the strongest growth driver, with nearly 30 million passengers, an increase of more than 11 per cent year on year, almost three times the growth rate of domestic travel. Domestic passenger traffic exceeded 46 million, up more than 4 per cent.

Vietnamese airlines carried nearly 35 million passengers during the seven-month period, up more than 3 per cent year on year. International passengers accounted for more than 11 million, up 1 per cent, while domestic passengers exceeded 23 million, rising more than 4 per cent.

The CAAV expects Việt Nam'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 per cent and 9.3 per cent, respectively.

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.

The CAAV will continue working with foreign aviation authorities to facilitate additional international routes while monitoring global economic conditions, geopolitical developments and fuel price fluctuations that could affect the aviation market.

Infrastructure development is another priority. Authorities are accelerating major airport planning and construction projects and preparing to reopen Liên Khương Airport and Cà Mau Airport following upgrades.

They are also advancing preparations for the future operation of Long Thành International Airport and Quảng Trị Airport, which are expected to expand Việt Nam's long-term aviation capacity and support continued market growth.

The proposed free trade zone in the central province would follow a multi-site, smart model, connecting seaports, border gates and East-West transport corridors.

Central Quang Tri province has proposed developing a free trade zone in three phases, with total investment estimated at VND77.23 trillion–VND114.13 trillion ($2.9–4.4 billion).

The provincial steering committee for the pilot free trade zone project recently held a meeting to review and refine the second draft of the proposal.

Under the proposal, the Quang Tri Free Trade Zone would follow a multi-site, smart model, connecting seaports, border gates and East-West transport corridors. It would create an integrated ecosystem linking logistics, trade, industry, services and digital infrastructure.

The model would go beyond simple goods transshipment, with the province seeking to develop logistics services that generate greater added value through warehousing, sorting, packaging, inspection, processing, re-export and related commercial services.

Quang Tri is also proposing 35 policy mechanisms across 12 groups covering investment and trade support, logistics, infrastructure development, and the management and operation of the free trade zone.

Vietnam's electronics sector posted a trade deficit of more than US$12.3 billion in the first seven months of 2026, driven mainly by surging imports of chips, components, machinery and equipment for AI, data center and production expansion, according to the Vietnam Electronic Industries Association.

Although the sector recorded nearly $126 billion in exports during the period, the highest export turnover among Vietnam's manufacturing and processing industries, its trade balance remained in deficit, Do Thi Thuy Huong, vice-chairwoman of the association, toldTuoi Tre(Youth) online newspaper.

The deficit in the first seven months of the year was concentrated in computers, electronic products and components, which posted a $45 billion trade deficit, far higher than the roughly $25 billion recorded in the same period last year.

Meanwhile, phones and their components recorded a $32.67 billion trade surplus.

As a result, the sector recorded an overall deficit of $12.33 billion.

Huong attributed the sharp increase in the computer and component trade deficit to several factors.

The first is the surge in investment in AI and data centers, which has prompted chip manufacturers to focus on supplying these sectors.

This has tightened chip supplies for products such as phones, computers and automobiles, driving up prices by 5-20 percent, Huong said.

Facing higher prices and shortages, businesses began stockpiling chips and other components early in the year to secure supplies for the rest of the year.

This increased companies' import spending, significantly widening the trade deficit in computers and components.

The second is that manufacturers have accelerated production and expanded orders to support this year's economic growth targets, including the goal of achieving double-digit growth.

Higher production volumes require larger quantities of imported raw materials and components, pushing up import spending.

The third is the expansion of production and investment by major foreign-invested enterprises in Vietnam, particularly in electronics, which has driven up imports of machinery, equipment, production lines, raw materials and components for new and expanded facilities serving computer manufacturing and data centers.

Despite the deficit, the association does not consider the current situation a major concern because the increased imports are for long-term investment rather than consumption.

Businesses are importing machinery, equipment, production lines, raw materials and components to build up production capacity, increasing the trade deficit in the short term but laying the foundation for greater industrial output and added value over the longer term.

The association expects the electronics trade balance to improve in the second half of the year as manufacturers accelerate shipments to meet demand during the November and December shopping season in the United States and Europe.

Huong said the overall electronics trade balance could return to equilibrium in the rest of the year, although the computer and component segment could remain in deficit as newly established and expanding businesses continue to invest.

To address the trade deficit over the longer term, the association has proposed government policies to strengthen the capacity of Vietnamese suppliers and help reduce imports.

Huong also said stronger support is needed to connect Vietnamese businesses with global corporations operating in Vietnam, enabling them to participate more deeply in global supply chains, meet their requirements and source more inputs locally, thereby reducing reliance on imports.