New goverment decree sets out limits on private participation in airports and related services.
The government has released Decree No. 102/2015/ND-CP on the management and operation of airports in Vietnam, including a provision permitting airlines to contribute no more than 30 per cent of charter capital in an airport.
This provision was introduced in the context of domestic airlines such as Vietnam Airlines and Vietjet Air wishing to invest in airports or passenger terminals where the Ministry of Transport is piloting franchises, such as Phu Quoc Airport or the T1 terminal at Hanoi’s Noi Bai International Airport. It is expected that the provision will come into effect on December 12.
The decree also loosens limits and allows foreign investors to participate in the field. Enterprises wanting to invest in flight zone operations, navigation and surveillance services, and aviation meteorological services are allowed to contribute no more than 30 per cent of charter capital.
For enterprises that want to invest in services in passenger terminals, petroleum services, and other technical services, the capital ratio is also not allowed to exceed 30 per cent. As for air traffic services, aeronautical information, and search and rescue services, only enterprises with 100 per cent State capital are permitted.
The decree also emphasized that enterprises investing in aviation services at airports in Vietnam must be legal entities. Those providing aviation services at international airports must have minimum capital of VND200 billion ($9 million) and VND100 billion ($4.5 million) at domestic airports.