Ho Chi Minh City's Tan Son Nhat International airport will receive an extra terminal, which will double its capacity to 50 million annually by 2025.
Prime minister Nguyen Xuan Phuc approved a plan proposed by French consulting firm ADP-Ingénierie for a new terminal south of the airport's two runways, says the Civil Aviation Authority of Vietnam.
In addition, a golf course run by the country's military located north of the airport will be closed after 2025, allowing the area to be used for cargo handling and MRO work.
Some proposals had called for a new terminal to be built on the site of the golf course, but this would have precluded connectivity with the airport's existing two terminals.
The airport handled 36 million passengers in 2017, well above its design capacity of 25 million.
A new international airport will also be developed to the north of the city at Long Thanh.
Its first phase is intended to be completed in 2025. This phase will comprise one runway and one passenger terminal capable of handling 25 million passengers and 1.2 million tonnes of cargo annually.
While the land's residents have been relocated, construction work on the project has yet to commence. Observers have expressed caution that the new airport may be delayed.