ACV invests VND 9.9 trillion to expand Da Nang airport T1 terminal

Overview

ACV (Airports Corporation of Vietnam) announced on August 27 a VND 9.936 trillion investment to renovate and expand the T1 passenger terminal at Da Nang International Airport, lifting total capacity to 14 million passengers per year. The project, alongside a VND 170 billion apron expansion, is set to begin construction in 2026-2027 and complete by 2029. This marks a significant step in ACV’s capital expenditure program to modernize Vietnam’s key aviation hubs.

Key Facts

• Total investment for T1 terminal expansion: VND 9.936 trillion (approximately USD 397 million).
• New capacity: 14 million passengers per year (10 million domestic, 4 million international).
• T1 expansion construction start: August 2026; completion of expanded section: January 2029; full renovation completion: August 2029.
• Apron expansion (Phase 1) adds 6 Code C aircraft parking positions, costing over VND 170 billion.
• Apron project construction start: December 2026; operational by July 2027.
• Announced jointly by ACV and the Da Nang People’s Committee on August 27.

What Happened

At a public announcement on August 27, ACV and the Da Nang People’s Committee unveiled plans for two major infrastructure projects at Da Nang International Airport. The first involves renovating and expanding the T1 passenger terminal to raise capacity to 14 million passengers annually, with a total investment of VND 9.936 trillion. The second project expands the aircraft apron (Phase 1) with six additional Code C parking positions, costing over VND 170 billion.

ACV Chairman Nguyễn Cao Cường stated that the projects are part of a broader plan to synchronously upgrade Da Nang airport’s infrastructure, aiming to meet growing operational demand and improve passenger experience. The projects are expected to enhance the airport’s overall capacity and support long-term growth in aviation traffic. Construction is scheduled to begin in August 2026 for the terminal and December 2026 for the apron, with completion targeted for 2029 and 2027 respectively.

Market Context

ACV (UPCOM: ACV) closed at VND 42,200 on August 27, 2026. The announcement comes as Vietnam’s aviation sector rebounds strongly, with passenger traffic at major airports surpassing pre-pandemic levels. Da Nang, a key tourist destination, has seen rapid growth in both domestic and international arrivals, straining existing infrastructure. ACV’s investment aligns with its strategy to expand capacity at major airports, including Long Thanh International Airport, though the Da Nang project is smaller in scale. The stock has been supported by steady earnings from airport operations and expectations of continued traffic growth.

Strategic Significance

For long-term investors, this investment underscores ACV’s commitment to upgrading regional airports to capture rising travel demand, particularly in central Vietnam. The T1 expansion will nearly double the terminal’s capacity, positioning Da Nang as a more competitive gateway for tourism and trade. The apron expansion addresses peak-hour congestion, improving operational efficiency. This project is part of ACV’s broader capital expenditure cycle, which may pressure near-term cash flows but is expected to enhance long-term revenue generation. The company’s ability to execute these projects on schedule and within budget will be key to maintaining investor confidence.

What to Watch

• Construction milestones: Timely start of T1 expansion in August 2026 and apron in December 2026.
• Progress updates on funding and contractor selection.
• Quarterly passenger traffic data at Da Nang airport to gauge demand growth.
• ACV’s overall capex guidance and impact on dividends or debt levels.
• Any regulatory approvals or environmental assessments required for the projects.