Vietravel Airlines and Asean Cargo Gateway (ACG) have signed an agreement to launch a new cargo airline in Vietnam.

The new air cargo carrier, VUAir Cargo, seeks to focus on transporting goods between Vietnam and other large manufacturing centres in Asia including China, Malaysia, Indonesia and Thailand.

Vietravel Airlines said in a press release that VUAir Cargo will utilize a fleet of up to four Boeing B737-800F freighters in the first year — although no date was announced on when cargo operations will commence.  

The fleet of the new cargo carrier is then expected to double in the next year.

Vietravel Airlines, which is owned by Vietravel Holdings, and ACG noted that VUAir Cargo aims to use the cargo airline to promote cargo business, air cargo exploitation, and cargo agency for airlines in the region.

Air cargo potential in the region

"The aviation cargo market still has a lot of potential and has not been fully exploited," said Vu Duc Bien, president & CEO of Vietravel Airlines.

"The supply chain is broken while the commodity market in Vietnam, China, countries in Southeast Asia, Northeast Asia, Europe and the Americas is considered to be the fastest growing region with the highest annual GDP in the world and the highest proportion of the working-age population in the world. Hence, production bases will gradually move to this area next to the worlds largest factory - China," he added.

The Vietravel Airlines chief noted that through an assessment, Vietnam is considered a bright and potential candidate in this production shift.

"This will be an opportunity for the logistics industry in general and air freight, in particular, to take off in the near future. For that reason, this is the right time to build and promote the first Air Cargo segment in Vietnam, combining ACG's experience in logistics and Vietravel Airlines' air transportation," Vu Duc Bien added.

Vietravel Airlines and ACG will have 51% and 49% stakes in VUAir Cargo respectively.

An ACG representative, for its part, noted that VUAir Cargo aims to improve air transport logistics in the region by becoming the first cargo airline in Vietnam and bridging Vietnam exports to reach the global market.

"The goal of meeting and promoting the domestic and international logistics industry, especially with great potential markets, means bringing firms in Vietnam closer to the global market."

"The airline will focus on transporting goods between Vietnam and large factories in Asia such as China, Malaysia, Indonesia, and Thailand on a fleet of dedicated aircraft B737-800F for cargo with the number volume of 2-4 units in the first year and is expected to double in the next year," the ACG representative added.

Meanwhile, aside from VUAir Cargo, another Vietnamese cargo carrier, IPP Air Cargo is also nearing its first flight. Last month, leasing and procurement advisor Brian Thomas Hogan said in a LinkedIn post that conversion work for its first freighter is near completion. 

"Our first 737-800BCF is nearly done in GAMECO. Second in conversion already! Third and Fourth following afterwards. Onward and upward IPP Air Cargo," Hogan said.