The framework agreement was signed in Hanoi on July 22 between FLC Group – a Vietnamese conglomerate with businesses spanning real estate, tourism and infrastructure development – and HAS Development Corporation (HASDC), a US company specialising in airport investment, development and operations.

Under the agreement, the two sides will jointly study investment options to upgrade and expand Phu Cat and Pleiku airports through the public-private partnership (PPP) model, with the aim of enhancing operational capacity and service quality to meet the socioeconomic development needs of Gia Lai province in Vietnam’s Central Highlands and the surrounding region.

Gia Lai People's Committee approved a proposal on July 10 allowing FLC Group to conduct research on PPP investment plans to upgrade and expand both airports.

Following the recent provincial merger, Gia Lai has become Vietnam's second-largest province by area and one of the few localities in the country with two airports located in separate key economic development zones.

According to Agustin Arellano, chairman and CEO of HASDC, the company will work closely with FLC to study internationally recognised solutions for airport infrastructure development while mobilising global expertise and resources to support project preparation.

With more than 25 years of experience in airport privatisation, concession and public-private partnership (PPP) projects across Central and South America, HASDC is backed by financial institutions and supported by government agencies in multiple countries.

“I believe this will provide a strong foundation for a successful partnership between FLC and HASDC,” said Arellano.

Representatives of both parties stressed that the framework agreement marks only the beginning of the project study process and does not constitute a final investment decision.

The signing ceremony was attended by representatives of Boeing Vietnam, the US-ASEAN Business Council (USABC), and several consulting firms.

Vu Tu Thanh, acting regional managing director and Vietnam’s chief country representative of the USABC, said growing interest from US companies in Vietnam's aviation infrastructure could create new opportunities for cooperation and attract additional international investment into the country.

Founded in 2001 and headquartered in Texas, HAS Development Corporation specialises in airport investment, development, management and operations. The company said it is expanding its search for investment opportunities across the Asia-Pacific region.

Under Decision No.1140/QD-BXD dated July 1, issued by the Minister of Construction, Pleiku Airport and Phu Cat Airport will continue to operate as domestic airports serving both civil and military purposes under the administration of Gia Lai province.

Pleiku Airport is designed to meet ICAO Code 4C standards, with annual passenger capacity reaching approximately two million by 2030. The airport is expected to cover around 383.7 hectares, with planned investment estimated at $506.4 million.

Under the long-term plan through 2050, Pleiku Airport will retain its 4C classification while expanding annual capacity to five million passengers, with additional planned investment of around $96.8 million.

Phu Cat Airport will have a larger scale, with plans for ICAO Code 4E classification, annual passenger capacity of around three million by 2030, and a planned land area of over 1,042ha. Planned investment is approximately $351.4 million.

By 2050, the airport will retain its 4E classification while expanding annual passenger capacity to seven million, with additional planned investment estimated at $252.3 million.