ACV to Invest VND 9,936B in Da Nang Airport Terminal T1 Upgrade

Overview

ACV (Airports Corporation of Vietnam) has announced a major infrastructure project to renovate and expand Terminal T1 at Da Nang International Airport, with a total investment of nearly VND 9,936 billion (approximately USD 397 million). The project aims to increase the terminal’s capacity to 14 million passengers per year, supporting the region’s growing aviation and tourism sectors. This is part of ACV’s broader strategy to modernize Vietnam’s airport infrastructure.

Key Facts

• Total investment for the T1 renovation and expansion project: nearly VND 9,936 billion (approx. USD 397 million).
• The project will raise total terminal capacity to 14 million passengers per year, including about 10 million domestic passengers.
• Construction is scheduled to begin in August 2027.
• The terminal expansion portion is expected to be completed and operational by January 2029.
• Full renovation of the existing terminal is targeted for completion by August 2029.
• A separate project to expand the aircraft parking apron (Phase 1) will add 6 Code C parking positions.
• ACV is coordinating with the Da Nang People’s Committee on the project.

What Happened

ACV, in coordination with the Da Nang City People’s Committee, held a ceremony to announce the implementation of the Terminal T1 renovation and expansion project and the Phase 1 apron expansion project at Da Nang International Airport. The announcement was made public through official channels, highlighting the projects’ role in enhancing operational capacity and passenger service quality.

The T1 project includes not only terminal expansion but also auxiliary works such as renovation of the elevated road, construction of a technical building, a multi-story parking facility with commercial services, wastewater treatment and waste collection systems, and interior/exterior lighting. The apron expansion project is still completing procedures but is expected to add six Code C aircraft parking positions to meet rising demand.

Market Context

ACV, listed on the UPCOM exchange, closed at VND 42 on August 28, 2026, up 0.24% with a volume of 485,400 shares. The announcement comes as Vietnam’s aviation sector continues to recover and grow, driven by increasing domestic travel and international tourism. Da Nang International Airport is a key gateway for central Vietnam, and this investment aligns with ACV’s ongoing capital expenditure program to upgrade major airports across the country. The project is part of a broader trend of infrastructure spending in Vietnam, supported by government policies promoting tourism and economic development.

Strategic Significance

This investment reinforces ACV’s position as the dominant airport operator in Vietnam, with a strategic focus on expanding capacity at key regional hubs. The T1 upgrade at Da Nang is expected to alleviate congestion and improve passenger experience, supporting the city’s ambition to become a major economic and tourism center. For long-term investors, this project demonstrates ACV’s commitment to maintaining world-class infrastructure, which could drive passenger throughput and ancillary revenue growth. The phased timeline (2027-2029) suggests a steady pipeline of capital expenditure, which may impact near-term cash flows but should enhance long-term earnings potential.

What to Watch

• Progress on the apron expansion project’s procedural approvals and its final investment decision.
• ACV’s quarterly earnings reports for updates on capital expenditure and funding plans.
• Passenger traffic data at Da Nang International Airport to gauge demand growth.
• Any regulatory approvals or environmental assessments required for the project.
• Potential impact on ACV’s dividend policy or debt levels given the large investment.