The centre is set to cover about 27ha near Can Tho International Airport. The project aims to improve transportation and trading activities, and promote logistics services in Can Tho and the wider Mekong Delta region.

Under the deal, the municipal People’s Committee will create favourable conditions in terms of information and relevant procedures for Vietnam Airlines to carry out the project.

Meanwhile, Vietnam Airlines will be swift in processing the necessary studies and surveys to prepare for the project’s takeoff. It has been cooperating with Japan’s Konoike group to assess the feasibility of the logistics centre.

Vice Chairman of the municipal People’s Committee Dao Anh Dung said Can Tho is ready to provide information about industrial parks, export processing zones, and goods and material supply areas to help the project’s smooth implementation.

Deputy General Director of Vietnam Airlines Trinh Hong Quang said that being tasked with implementing the first in a series of aviation logistics projects proves his firm’s pivotal role in realising the Government’s policy of boosting the development of logistics infrastructure nationwide.

He added that amidst the strong annual growth rate of 15%-20% of the domestic logistics industry, operating logistics centres will become a significant source of revenue for Vietnam Airlines in the coming years. For Can Tho, the new aviation logistics centre will be a critical facility helping to connect the city and the Mekong Delta with other localities in Vietnam and foreign countries.

Vietnam Airlines reported that the demand for goods transportation, especially by air, in the country has risen sharply in recent years. In 2017, over 700,000 passengers and 4,000 tonnes of cargo were transported via Can Tho International Airport