New entrant Sun PhuQuoc Airways and the revival of Vietravel Airlines are set to intensify competition in the Vietnamese aviation market, long dominated by national flag carrier Vietnam Airlines and low-cost airline, Vietjet Air.
Sun PhuQuoc Airways’ entry
Sun PhuQuoc Airways, backed by tourism giant Sun Group, landed its first Airbus A321 on August 10, just weeks after securing its license.
The carrier aims to begin ticket sales in October and launch flights in December, with plans to operate eight A321 aircraft by the end of this year, VnExpress International reported.
It has recruited crew, arranged financing from Vietcombank for 10 planes, and is positioning itself as a resort-focused airline offering premium travel experiences, with future routes to China, Japan, and South Korea.
Vietravel Airlines’ comeback
Meanwhile, Vietravel Airlines is staging a comeback with fresh investment from T&T Group after setbacks from aircraft shortages and financial strain.
Since June, it has purchased two planes, with more on the way, and plans to build a fleet of at least 10 aircraft this year, shifting from leasing to ownership.
The airline is also developing a dedicated cargo division while expanding domestic routes.
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Vietnam attracts 12.2 million foreign visitors
Vietnam welcomed 12.2 million international visitors in the first seven months of 2025, up 23% year-on-year and surpassing 2019 levels.
Growth is expected to accelerate with new visa exemptions for 12 European countries from August 15.
At the same time, major infrastructure projects like Long Thanh International Airport and the expansion of Phu Quoc International Airport are creating more space for emerging airlines.
Tourism recovery benefits set players
Vietnam Airlines reported record profits of over VND6.68 trillion ($254 million) for the first half of 2025, twice as much as its annual profits in the three years until 2019.
Vietjet’s profits grew 65% year-on-year to VND1.6 trillion ($60.7 million), its highest since the outbreak of COVID-19.
Despite challenges after restructuring, Bamboo Airways almost eliminated losses in the first half of this year.
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Shameeka Voyiya 
Newsjustnews writers 
Ren Azrack Escosio