Johnathan Hanh Nguyen, business tycoon and chairman of IPP Air Cargo Joint Stock Company, has asked the Ministry of Planning and Investment and other ministries for permission to found IPP Air Cargo, Vietnam’s first air freight transport.
According to the proposal, IPP Air Cargo will operate both domestically and internationally.
Total investment into the project is estimated at VND2.4 trillion (US$103.5 million), 30 percent of which is equity and the remaining 70 percent is mobilized.
In its first year of operation, IPP Air Cargo will operate five cargo aircraft, increasing its fleet to seven in its second year, and ten in the third.
The airline expects to transport about 115,000 metric tons of cargo, with a revenue of $71 million in the first year.
It hopes to begin making a profit in its fourth year of operation.
Once established, IPP Air Cargo will become the first Vietnamese cargo airline.
Currently, more than 80 percent of goods imported and exported by air in Vietnam are transported by foreign airlines.
Since the outbreak of the COVID-19 pandemic, Vietnamese airlines have used passenger aircraft to carry cargo in order to cover their losses from the decrease in passenger transportation service.
Founded on March 10, IPP Air Cargo Joint Stock Company is a member of Imex Pan Pacific Group (IPPG), well known as one of the largest conglomerates in Vietnam, with portfolios in fashion, F&B, real estate, and non-aviation services.
It accounts for nearly 70 percent of the market share of international branded goods distributed in the country.
IPPG is also a major shareholder in Southern Airports Services Joint Stock Company, which operates Tan Son Nhat International Airport in Ho Chi Minh City, and Cam Ranh Terminal Joint Stock Company, which manages Cam Ranh International Airport in south-central Khanh Hoa Province.
Johnathan Hanh Nguyen is also the chairman of IPPG.