Vietnam - Vietnam may have 100 private helicopters in the next 10 years: businessman

Though the Vietnamese average income per capita remains at “low average” level, Commercial Manager of Vinacopter, a distribution firm, Jussi Hoikka, still believes that the demand for private aircraft in Vietnam would soar in the time to come.

There are about 20 operational helicopters in Vietnam, a very modest figure if compared with the number of helicopters in neighboring countries. The Philippines now has 150 helicopters, Indonesia 130, Malaysia 70 and Thailand 45.

Of the 20 above said helicopters, 18 have been used in oil and gas exploitation, including 10 of Eurocopter and 8 of Russia. As such, there are only 2 private owned ones.

However, the commercial director, in the interview given to VnExpress recently, still said that he can see the great potentials of the Vietnamese market; saying that about 100 private helicopters would be in demand in Vietnam in the next 10 years.

According to him, in the first eight months of 2011, Vinacopter completed the contracts on selling two helicopters to Vietnamese clients. The distribution firm is negotiating for other contracts and it hopes that it would sell five helicopters in 2011 at least.

Five products to be sold should be considered a satisfactory business result, because one should not think that the demand for such a luxurious and expensive product would increase sharply in the context of the big economic difficulties worldwide.

The executive has revealed that in the whole year 2010, Vinacopter, the only distribution firm in Vietnam, could sell two helicopters only.

In general, the clients who buy helicopters do not want to be identified, but they surely come from big private enterprises. Businessmen are the clients that the helicopter distributor is targeting.

One of the Vietnamese businessmen who first ordered a private helicopter in Vietnam is Chair of the Hoa Phat Group, Tran Dinh Long.

Long placed the order about the private helicopter with Eurocopter, of which Vinacopter is a subsidiary, in Singapore in 2008

When asked why he still puts high hopes on the development of the Vietnamese market, while the Vietnamese income per capita is just at the low average level in the world, and helicopters are really very expensive, the commercial director said that the managers or enterprises – the main clients of the distribution firm – are financially capable enough to possess helicopters.

In general, a helicopter is priced at between 2-14 million, not including import tax, VAT and the luxury tax of 30 percent. If counting on other expenses, including the ones on fuel, insurance premiums, maintenance fee and parking area; the total expenses for possessing a helicopter would be a huge amount.

In the current poor traffic conditions, a lot of businessmen have to think of an effective means of transport which allows them to go to the places they want on time. As such, they would think of helicopters. Besides, helicopters can also be used as a tool for advertisement and marketing.

At present in Vietnam, individuals have to follow complicated procedures to register the ownership over helicopters. Especially, they have to pay very high luxury tax of 30 percent, as private helicopters are not encouraged in Vietnam.

However, the individuals who want to fly on their own helicopters, can lease companies which take the responsibility for operating and managing the helicopters for the owners. This is also the way that most of the clients of Vinacopter is following.

Doan Nguyen Duc, Chair of Hoang Anh Gia Lai Group, is the other businessman who owns a private helicopter. Duc said that he has to spend 400,000 dollars a year on his helicopter.

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