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State media reports that Vietnam has approved the establishment of Sun PhuQuoc Airways

The official Vietnam News Agency announced on Tuesday that Pham Minh Chinh has approved the creation of Sun PhuQuoc Airways.

VNA reported that the airline's parent company, real estate and hospitality developer Sun Group will invest an initial 2.5 trillion dong (96 million dollars) to begin operations and launch its first flight in the fourth quarter 2025.

Vietnam's aviation market, which has a population of over 100 million people, has grown rapidly after recovering from the COVID epidemic, causing businesses to compete for market share.

Sun PhuQuoc Airways will operate alongside the national flag carrier Vietnam Airlines as well as low-cost carrier VietJet and Bamboo Airways. The airline aims to increase its fleet size to 31 aircrafts by 2030. The new airline is expected to offer both commercial and chartered flights.

According to the website of Sun Group, Sun Air is a premium airline that offers private jet services for wealthy clients.

According to official statistics, Vietnam's first four months saw an increase of 23% in visitors compared to the same period last year. 7.7 million tourists visited the country.

Sun Group is not available for comments outside of normal business hours. Reporting by Phuong nguyen. (Editing by David Goodman, Mark Potter and Mark Potter.)

(source: Reuters)