Long Thanh International Airport is being constructed over an area of 5,000 hectares (50 million square metres) in Dong Nai Province, to the east of Ho Chi Minh City. When fully completed, the new airport will have four runways and four passenger terminals with an annual capacity of up to 100 million passengers and 5 million tonnes of cargo, making it a major rival to regional transit hubs like Singapore and Bangkok. "This project is a critical element in Vietnam’s strategy to become a high-income, manufacturing-led economy integrated into global supply chains," said a senior logistics analyst.
The airport’s signature terminal features a design inspired by the lotus flower, incorporating state-of-the-art automated self-baggage drops, biometrics, and eco-friendly energy conservation systems. The project is estimated to cost around $16 billion (£12.5 billion equivalent) across its developmental phases, employing tens of thousands of workers during construction. However, the project has caused significant disruption, requiring the relocation of over 5,000 households and raising concerns about local agricultural land loss, debt-funding burdens for the state, and reports of intense pressure on contractors to meet strict phase deadlines.
Evaluate the microeconomic and macroeconomic impact of large infrastructure projects such as the building of a new international airport in Vietnam.
50 exam-style questions on Edexcel A A Level Economics 3.6.1 Government intervention. Each one has a worked solution and a mark scheme showing where the marks go.