Vietnamese Airfares to Singapore and Thailand Drop Significantly

Airfares for flights from Vietnam to Singapore and Thailand have significantly decreased in recent months, with prices reaching levels not seen since before the COVID-19 pandemic. Passengers booking flights from Ho Chi Minh City (HCMC) to Singapore are now finding one-way tickets starting at approximately VND1.6 million (around $64), a notable drop from last year's prices which peaked at VND3.2 million ($122) for the same route, according to Hoang Loan, a local traveler.

This decline in airfares is attributed to a rapid increase in flight capacity by Vietnamese airlines, which has intensified competition in the market. Vietnam is expected to have around 7.3 million available seats in August, reflecting a 10% increase from the same period last year, as reported by aviation data provider OAG. This positions Vietnam as the second-largest commercial aviation market in Southeast Asia, following Indonesia.

“Last year, a one-way ticket from HCMC to Singapore cost VND3.2 million, while this year I paid just over VND1.6 million.”Hoang Loan, traveler

Vietjet Air, one of the leading budget airlines in Vietnam, has also increased flight frequencies on popular international routes, including HCMC to Kuala Lumpur, which now operates seven flights a week during the peak season. The airline plans to launch new routes, including HCMC to Colombo and Hanoi to Almaty and Prague, further enhancing connectivity.

In addition to increased capacity, several factors have contributed to the drop in airfares. Fuel costs have decreased due to a reduction in preferential import tariffs and environmental taxes on aviation fuel, implemented by the government until September 30. This has allowed airlines to lower operational costs and subsequently reduce ticket prices.

Travelers have reported finding promotional fares as low as VND1.4 million ($56) for flights from HCMC to Singapore during promotional events, with some tickets available for as little as VND19,000 ($0.76) before taxes and fees. In comparison, flights from HCMC to Bangkok are similarly priced, with one-way tickets ranging from VND1.6 million to VND1.9 million ($64 to $76).

“Increased supply and competition among airlines are key reasons international airfares have cooled.”Hong Thanh, airline ticket agency owner

Despite the competitive pricing from Vietnamese airlines, some foreign carriers continue to charge significantly higher fares for the same routes, often two to three times more than local airlines. This price disparity highlights the competitive landscape of international air travel from Vietnam, where domestic airlines are rapidly gaining market share.

Experts noted that the increased competition among airlines, coupled with a decrease in demand for international travel this year, has necessitated lower prices to attract customers.