Bangkok--22 Oct--Centre for Asia Pacific Aviation Vietnam appears to be laying the groundwork for the development of an LCC unit of Vietnam Airlines, possibly involving a third party investor. Vietnam Airlines has received Prime Ministerial approval to establish a partly private company by reorganising subsidiary, Vietnam Air Service Co (VASCO). Further details are not yet available, but a response is likely to counter LCC competition from the Qantas-invested Pacific Airlines (to be brought under the Jetstar brand in future) and the planned LCC JV between AirAsia and local shipbuilder, Vinashin. Tiger Airways is seeking JV opportunities in Asia, although the involvement of the national carrier may be a deterrent to it and some other would-be investors. Vietnam is one of Asia’s hottest aviation and tourism markets, with foreign visitor arrivals surging 17% in the first nine months of 2007, to 3.2 million. Vietnam received 3.6 million foreign visitors in 2006, up 4%. The Mekong Subregion, including Vietnam, Laos and Cambodia, is undergoing a surge in foreign traveller interest, drawn to its cultural heritage and resort locations.