Vietnam sets minimum capital limits for airlines

Dino D'Amore
By Dino D'Amore June 27, 2016 10:55

Vietnam sets minimum capital limits for airlines

The Vietnamese Ministry of Transport has submitted a draft decree on conditional business lines, which states that new airlines must have capital of at least VNĐ100 billion (US$4.66 million). The proposed rules state that if an airline registers one to 10 aircraft, it must have investor guarantees in place of at least VNĐ700 billion for international services and VNĐ300 billion for domestic services.

If the airline registers 10 to 30 aircraft, investors are required to guarantee at least VNĐ1 trillion for international flights and VNĐ600 for domestic flights.

New airlines registering more than 30 aircraft will have to secure at least VNĐ1.3 trillion for international flights and VNĐ700 billion for domestic flights.

Foreign direct investment in airlines is limited to 30% of the charter capital, while Vietnamese individuals or investors are not permitted to hold more than 49% of charter capital.

The draft decree also sets out the principles and responsibility of agencies and units to manage, plan and operate airports.

Dino D'Amore
By Dino D'Amore June 27, 2016 10:55