The funding will also cover the building of a third passenger terminal at HCMC’s Tan Son Nhat International Airport.

During Prime Minister Nguyen Xuan Phuc’s visit to Sweden in May 2019, the two countries had discussed a potential credit line of over $1 billion for the development of aviation projects in Vietnam, Swedish Ambassador to Vietnam Ann Mawe said at a Saturday meeting with Minister of Transport Nguyen Van The that

The Swedish Export Credit Agency and the state-owned Export Credit Corporation in Sweden have now proposed increasing the credit limit to $2 billion to cover upgrade projects and air traffic management expansion.

To be eligible for the credit line, Vietnam will have to use 30 percent of the loan to purchase Swedish technologies and equipment.

The said the Vietnamese government gives priority to aviation development and is supportive of Vietnamese agencies accessing this loan, including the use of Swedish equipment, products and services.

In addition to the Long Thanh and Tan Son Nhat airports, Vietnam plans to upgrade other airports, including the Noi Bai International Airport from the current capacity of 30 million passengers per year to 100 million, and the upgrade of other airports in Lao Cai, Van Don, Phu Quoc and Chu Lai, he said.

The $4.6 billion first phase of the Long Thanh International Airport, which will be built in the southern province of Dong Nai, has been approved by the government. Work is set to begin this month and be completed in 2025.

The government has also agreed to a VND10.99 trillion ($472 million) investment for building the Tan Son Nhat airport’s third terminal, T3. Work on this project, which is expected to help reduce overload at the current T1 domestic passenger terminal, is set to begin in October 2021 and be completed in mid-2023.

The country currently has 22 civilian airports. They served near 116 million passengers last year, up 12 percent from 2018.