Vietnam’s Vietravel Airlines is planning to launch new cargo airline VUAir Cargo in cooperation with logistics player Asean Cargo Gateway (ACG).

Vietravel Airlines will have control with 51 percent stake with the remaining shares (49 percent) going to ACG. The cargo airline will focus on goods between Vietnam and large factories in Asia such as China, Malaysia, Indonesia and Thailand.

VUAir Cargo is looking to use a fleet of up to four B737-800F freighters in the first year, with plans to double in size for the next year, Vietravel said in a press release. It did not state when the actual launch date is.

Mr. Vu Duc Bien, President & CEO of Vietravel Airlines, the aviation cargo market in Vietnam still has a lot of potential and has not been fully exploited.

“The supply chain is broken while the commodity market in Vietnam, China, countries in Southeast Asia, Northeast Asia, Europe and the Americas is considered to be the fastest growing region with the highest annual GDP in the world and the highest proportion of the working-age population in the world,” the CEO noted.

“Production bases will gradually move to this area next to the world’s largest factory – China”.