Vietnam Airlines (VN, Hanoi Noi Bai International) has signed an agreement with the People's Committee of Can Tho over the construction of a logistics hub in the Mekong Delta city.

According to a statement issued following the ceremony last week, the facility will be built near Can Tho International Airport and will cover 27 hectares. More details will be revealed later in the year.

In return for the investment, the municipal authorities will create favourable economic conditions through the provision of planning assistance as well as guidance in securing the relevant regulatory/government permits.

Airline Deputy Director General, Trinh Hong Quang, said that the hub would cater to domestic as well as international freight and is expected to generate significant returns within the coming years. Figures quoted by the local authority said Vietnam's logistics sector was growing around 15-20% per annum.

To ensure demand is met, Vietnam Airlines is also building logistics hubs in Hanoi Noi Bai International, Ho Chi Minh City, and Da Nang.