Prime Minister Pham Minh Chinh issued a decision on Thursday to approve the construction of an airport in Sa Pa, a famous resort town in the northern Vietnamese province of Lao Cai, at an estimated cost of almost VND7 trillion (US$305 million).
The project, developed under the public-private partnership (PPP) format, is located on a 371-hectare plot in Cam Con Commune, Bao Yen District.
The first phase of the construction will start this year and will build the airport to a capacity of 1.5 million passengers a year before doubling it to three million passengers following the second stage in 2028.
The government will be charged with site clearance while private companies will undertake construction of the project.
The government will contribute VND2.73 trillion ($119.8 million), or 39 percent of the funds, and private investors will cover the rest.
Construction is expected to last four years and the investors are forecast to break even after 46 years.
Sa Pa Airport is one of six new airports approved for construction by 2030.
Vietnam has 22 airports at present.
In the first six months of 2021, Lao Cai welcomed 1.1 million tourists, up 21 percent year on year, according to the Ministry of Culture, Sports, and Tourism.