Saigontourist Group, Vietnam Airlines Sign Sri Lanka MOUs for Direct Flight by 2026

Overview

Saigontourist Group, in coordination with Vietnam Airlines (HVN), signed multiple memoranda of understanding (MOUs) with Sri Lankan tourism associations and a local company during a state visit by Vietnam’s top leaders to Sri Lanka on May 7-8, 2026. The agreements focus on developing joint tourism packages and preparing for a direct Ho Chi Minh City-Colombo flight route expected to launch by end-2026, which would be operated by Vietnam Airlines.

Key Facts

• Saigontourist Group and Vietnam Airlines signed MOUs with the Sri Lanka Association of Inbound Tour Operators (SLAITO) and the Travel Agents Association of Sri Lanka (TAASL) on May 8, 2026.
• A separate MOU was signed between Saigontourist Travel Service Company (a subsidiary) and Incredible Asia Private Ltd.
• The tripartite MOU between Saigontourist Group, Vietnam Airlines, and SLAITO directly prepares for the planned Ho Chi Minh City-Colombo direct flight route, targeted for launch by end-2026.
• The agreements cover joint marketing, integrated air-and-ground product development for high-value segments including leisure, cultural heritage, wellness, MICE, and experiential travel.
• The MOU with TAASL focuses on capacity building, roadshows, and trade connectivity to boost two-way tourist flows.
• The MOU with Incredible Asia targets tailor-made tour programs linking Vietnam and Sri Lanka as a combined destination for international travelers.
• Vietnam Airlines (HVN) closed at VND 23,000 on April 15, 2026, up 2.24% with volume of 1,115,400 shares.

What Happened

During the official visit of Vietnam’s Party General Secretary and President To Lam to Sri Lanka on May 7-8, 2026, Saigontourist Group participated in economic diplomacy and trade promotion activities. On May 8, at the Vietnam-Sri Lanka Business Forum 2026 in Colombo, Saigontourist Group and Vietnam Airlines signed two MOUs with SLAITO and TAASL. Separately, Saigontourist Travel Service Company signed an MOU with Incredible Asia Private Ltd.

The most notable agreement is the tripartite MOU among Saigontourist Group, Vietnam Airlines, and SLAITO, which is positioned as a direct preparatory step for the planned Ho Chi Minh City-Colombo direct flight route to be operated by Vietnam Airlines by end-2026. The parties aim to jointly promote tourism development between the two cities.

Market Context

Vietnam Airlines (HVN), listed on HOSE, closed at VND 23,000 on April 15, 2026, up 2.24% on volume of 1,115,400 shares. The stock has been sensitive to tourism recovery and international route expansion news. The Sri Lanka MOUs signal potential new revenue streams from a direct route to South Asia, a region where Vietnam Airlines currently has limited direct connectivity. The broader Vietnamese tourism sector is benefiting from increased international arrivals and government efforts to diversify source markets.

Strategic Significance

The MOUs represent a coordinated push by Vietnam’s state-linked tourism and aviation sectors to enter the South Asian market, leveraging high-level diplomatic channels. For Vietnam Airlines, a direct Ho Chi Minh City-Colombo route would fill a gap in its network and capture both leisure and business traffic between Vietnam and Sri Lanka, as well as connecting traffic from Northeast Asia. The focus on high-value segments (MICE, wellness, cultural heritage) suggests a strategy to attract premium travelers rather than mass tourism. The partnership with Saigontourist Group, a major state-owned tourism operator, ensures integrated ground services and tour packages, which could improve load factors and yield on the new route.

What to Watch

• Official announcement of the Ho Chi Minh City-Colombo route launch date and frequency by Vietnam Airlines.
• Q2 2026 earnings report for HVN, particularly international passenger revenue and load factor trends.
• Any follow-up MOUs or commercial agreements between Vietnamese and Sri Lankan tourism businesses.
• Visa policy changes between Vietnam and Sri Lanka that could affect tourist flows.
• Competitor responses from other airlines serving South Asia from Vietnam (e.g., VietJet Air, Bamboo Airways).