The Hangar War in Vietnam: Billionaires Nguyen Thi Phuong Thao and Bau Hien Disrupt Vietnam Airlines’ Monopoly

For many years, Vietnam Airlines held a monopoly in aircraft maintenance in Vietnam, leveraging state resources and infrastructure. Its subsidiary, VAECO, catered not only to its own fleet but also over 80 international airlines. The exorbitant cost and strict safety standards associated with building hangars created substantial entry barriers for new airlines. However, companies like VietJet and Bamboo Airways are now investing in their own maintenance infrastructures due to the expansion of their fleets. VietJet Air recently won approval for a $1.5 billion investment to build new hangars at Long Thanh and plans further expansions. Additionally, T&T Group, led by Bau Hien, is proposing to develop an aviation ecosystem in Quang Tri. The active participation of private airlines is expected to foster a more competitive aircraft maintenance industry in Vietnam.