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| Aircraft at the Noi Bai International Airport__Photo: VNA |
The Ministry of Construction has released a draft decree on air transport, proposing raft of new regulations related to the establishment and operation of domestic airlines, with the aim of creating more favourable conditions for enterprises to enter the civil aviation market.
Under the draft, the proportion of charter capital held by foreign investors in Vietnamese airlines would be increased to a maximum of 49 per cent, compared with the current cap of 34 per cent.
According to the Civil Aviation Authority of Vietnam, the proposal is expected to support business expansion, enhance access to capital, and make the full use of management expertise and operational capabilities from international partners. It is also consistent with international commitments on market liberalisation in trades and sectors subject to conditional business investment.
The authority believes that the new foreign ownership threshold would not affect the control of domestic investors in civil aviation enterprises. Instead, it still ensures domestic stakeholders’ decision-making authority, thereby maintaining operational control in special circumstances, including matters related to national defence and security, as well as commercial interests in both domestic and international transport operations.
With regard to capital requirements, the draft requires enterprises operating up to 30 aircraft to have a minimum equity of VND 300 billion, while those operating 31 aircraft or more must have an equity of at least VND 700 billion.
When applying for an airline establishment licence, civil aviation enterprises would be allowed to use audited financial statements of equity in place of banks’ certification of frozen deposit as currently required, as proof of compliance with capital requirements.
The draft further permits enterprises licensed to provide scheduled commercial air transport services to operate non-scheduled flights without having to obtain two separate licences as is currently required.- (VLLF)
