HANOI, May 20 (Reuters) - Vietnam's Prime Minister, Pham

Minh Chinh, has approved the establishment of a new airline, Sun

PhuQuoc Airways, the official Vietnam News Agency reported on

Tuesday.

The airline, the parent company of which is real estate and

hospitality developer Sun Group, will begin operations with an

initial investment of 2.5 trillion dong ($96 million) and plans

to launch its first flight by the fourth quarter of 2025, VNA

reported.

The aviation market in Vietnam, a country with a population

of 100 million, is growing rapidly since recovering from the

COVID pandemic, prompting businesses to vie for market share.

Sun PhuQuoc Airways - set to operate alongside national flag

carrier Vietnam Airlines, low-cost carrier VietJet, Bamboo

Airways, and Vietravel Airlines - aims to expand its fleet to 31

aircraft by 2030, the VNA report said. The new airline will

provide both commercial and charter flights.

Sun Group has previously launched Sun Air, a high-end

airline offering premium private jet services to wealthy

customers, according to its website.

Vietnam saw a 23% year-on-year increase in visitor numbers

in the first four months of this year, with 7.7 million tourists

arriving in the country, according to official data.

Sun Group was unavailable for comment outside of business

hours.