Soaring High: Business in Vietnam and the Role of Private Jets

Amidst Vietnam's dynamic economic landscape, characterized by a burgeoning tech sector and dynamic demographics, the nation is rapidly evolving into a global business hub. At the core of this transformation lies the concept of the quantum economy, as explored by my book, 'The Quantum Economy.' I delve into the intricate dynamics of technology, innovation, and economic growth, emphasizing the pivotal role technology plays in propelling nations towards unprecedented growth trajectories.

In the book I highlight the quantum leap Vietnam has taken, particularly in its tech sector. Over just 15 years, the country has transformed from minimal representation in the IT industry to boasting nearly 14,000 IT businesses covering hardware, software, and digital content. This evolution aligns seamlessly with the nation's economic pillars, as underscored by the World Bank.

With a dynamic population of 93.5 million people and an average age of 30.3 years, Vietnam is capturing the attention of the global business community. PricewaterhouseCoopers predicts that Vietnam is poised to be the fastest-growing emerging economy by 2025, with a potential growth rate of nearly 10% per annum in real dollar terms. This growth trajectory could position Vietnam at around 70% of the size of the UK economy by 2050.

Over the last 25 years, Vietnam's economy has undergone a remarkable transformation, translating into higher incomes. The World Bank notes an expected 170% increase in the ultra-wealthy population, reaching 540 individuals over the next decade – the highest growth rate globally. This surge is anticipated to be driven by robust growth in the local healthcare, manufacturing, and financial services sectors.

Vietnam's strategic reforms and land measures have solidified its position as a global agricultural powerhouse. It leads globally in cashew nut production, contributing one-third of the global share, and black pepper production, holding a one-third market share. As the second-largest rice exporter after Thailand, Vietnam boasts the highest percentage of land use for permanent crops (6.93%) in the Greater Mekong Sub-region. Recognized as one of Asia's most open economies, two-way trade constitutes around 160% of its GDP – surpassing both China and India.

A pivotal force propelling Vietnam's economic surge is its burgeoning tech sector. Recognizing its significance, the Vietnamese government has invested heavily in infrastructure and implemented economic policies encouraging both domestic and international entrepreneurs to establish businesses.

In the aviation sector, indicative of the country's economic development, Vietnam currently boasts 20 civil airports, including seven international airports. Notably, Ho Chi Minh's Tan Son Nhat Airport, with its Fixed Based Operation (FBO) managed by Vector Aviation, has witnessed substantial growth since its inception in 2011, recording 162,349 aircraft movements in its first year.

As Vietnam becomes a focal point for international business, private jets play a crucial role in facilitating smooth and efficient travel for business executives and investors. The FBO at Tan Son Nhat Airport provides a private and exclusive terminal, catering to the increasing demand from global business leaders exploring investment opportunities in the country.

The quantum economy lens also sheds light on foreign investment trends in Vietnam. Capital from the Americas and Europe is expected to flow into the country's mergers and acquisitions (M&A) market, attracted by Vietnam's impressive economic growth, young population, and expanding consumer market. Sectors such as fast-moving consumer goods, retail, food production and processing, logistics, and financial services are witnessing a surge in foreign investment. Notably, European investors, impacted by economic downturn and inflation, are increasingly turning to Vietnam as a prime destination to safeguard their assets.

Vietnamese leisure and infrastructure investment firm Sun Group has established a new luxury business aviation company, offering a range of aircraft types.

The company will be known as Sun Air and specialises in private jet charter and aircraft management.

Sun Air operates a pair of long-range Gulfstream G650ER executive jets.

Its expansion plans include introduction of a G700 – plus a helicopter and a pair of seaplanes, for tourism flights – by 2025.

But the company’s five-year business strategy also features potential operations by larger models including Boeing BBJ or Airbus ACJ corporate jets.

“Whether clients travel for business or pleasure, Sun Air delivers a bespoke travel service tailored to their specific requirements,” says the firm. It says there is a “booming demand” for private travel.

“Launch of Sun Air is entirely in the sustainable development roadmap of Sun Group,” says chair Dang Minh Truong.

“Sun Air…goes a long way towards opening the development of upmarket general aviation, a potential field in prosperous countries.”

Alongside tourism and leisure facilities, and real-estate ventures, Sun Group has invested in transport infrastructure including Van Don airport, about 200km west of Hanoi, which has been operating for about three years.

In conclusion, as Vietnam continues its remarkable economic ascent, the quantum economy perspective, as presented in Fabrizio Poli's 'The Quantum Economy,' underscores the interplay between technology, innovation, and economic growth. With a thriving tech sector, robust trade, and a favorable investment climate, Vietnam emerges as a beacon of opportunity. The role of private jets becomes increasingly significant in facilitating seamless engagement for global business leaders and investors alike.

Fabrizio Poli

Founder Biz Jet TV & Author, "The Quantum Economy"