Vietnam: Contracts for lease of assets at airport/airfield shall not exceed 30 years

10:50, 30/10/2015

Recently, the Government of Vietnam has issued the Decree No. 102/2015/NĐ-CP on management and operation of airports and airfields.

Hợp đồng cho thuê tài sản tại cảng hàng không, sân bay, Nghị định 102/2015/NĐ-CP

According to Article 33 of the Decree No. 102/2015/NĐ-CP of the Vietnam’s Government, the lease contract is concluded and executed on the basis of the plan for leasing and result of lessee selection. Main contents of the lease contract include: names, addresses, account numbers of the parties; the rent; conditions and methods of payment; list of construction works; rights and obligations of the parties; conditions and procedures for contract revision; regulations that the plan for leasing approved by competent authorities is an integral part of the contract; effective date and duration of the contract; dispute settlement.

Concurrently, it should be noted that the duration of a lease contract shall not exceed 30 years and may be extended for up to 20 more years by the Minister of Transport of Vietnam.

Besides, revenue from the lease shall be used for the following purposes:

- Construction, maintenance, repair, upgrade, extension of infrastructure of the airport/airfield;

- Covering the cost of making and executing the plan for leasing.

Note: The Ministry of Transport of Vietnam shall decide the plan for collecting, transferring, and using the revenue from lease of property on leased land at the airport/airfield invested by state budget after reaching an agreement with the Ministry of Finance.

View more details at the Decree No. 102/2015/NĐ-CP of the Vietnam’s Government, effective from December 12, 2015.

Ty Na

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