Regulations on price bracket for franchising aviation services in Vietnam

Regulations on price bracket for franchising aviation services in Vietnam
Châu Thanh

Circular 13/2022/TT-BGTVT stipulates the price bracket for franchising aviation services issued by the Minister of Transport of Vietnam on June 30, 2022.

According to the Circular in Vietnam, the price bracket for franchising aviation services is regulated in Vietnam as follows:

(1) International passenger terminal franchising: 15% to 24%;

(2) Terminal and warehouse franchise fees range from 1.5% to 4%.

(3) Exploitation concession for ground commercial engineering: 1.5% to 4.5%;

(4) Franchise operation, repair, and maintenance of aircraft and equipment: 1%-3%;

(5) Aviation technical exploitation concession: 1%-3%;

(6) Franchise to provide airline meals: VND 75,000/flight - VND 225,000/flight;

(7) Concession of aviation petroleum exploitation and supply: 28,000 VND/ton to 84,000 VND/ton

In particular, the regulations on calculating the franchise price of aviation services in Vietnam are as follows:

- The above franchise prices do not include value added tax;

- The franchise prices according to the percentages specified in items (1) to (5) are calculated on the turnover (excluding value added tax) of the enterprises participating in the provision of the respective services;

- The revenue or output used to calculate the mining franchise price does not include the revenue or output of companies providing services for their own businesses and subsidiaries, which are 100% charter capital owned by the parent company.

Circular 13/2022/TT-BGTVT takes effect from September 1, 2022, in Vietnam.



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