The Vietnamese Government has approved the construction of the $15.8bn Long Thanh International Airport outside Ho Chi Minh City.
The resolution was approved with 428 votes in favour, and 17 against, with 16 absentations,
It is expected that the airport will be completed by 2025. It will have an estimated annual capacity of 100 million and will be able to handle five million tons of cargo.
The facility will also help ease the load on its neighbouring Tan Son Nhat airport, which is the country's largest in terms of area.
Construction of the airport will be carried out in three phases. The first phase will cost an estimated $5.2bn and the $4bn second phase will run from 2030 to 2035, thanhniennews.com. reported.
The third stage is expected to run from 2040 to 2050. It need an investment of approximately $6.6bn, according to preliminary figures.
The approval comes weeks after Vietnamese national assembly delegates urged the government to take a quick decision on the construction.
Tan Son Nhat is the only international airport in the Ho Chi Minh City. As it was built inside the city of Saigon during the Vietnam War, it does not have scope for expansion.
Currently, the airport has a capacity of 25 million passengers and is said to be growing at an annual rate of 15%. It is estimated that the airport will over-run its capacity in 2017.