Legal Counselling

Vietnam: Reducing the minimum amount of capital required for establishment and maintenance of an airline

09:55, 22/11/2019

This is a notable content mentioned in Decree No. 89/2019/NĐ-CP of Vietnam’s Government on amendments to some Articles of Decree No. 92/2016/NĐ-CP dated July 01, 2016 of Vietnam’s Government on conditional business lines in the civil aviation industry and Decree No. 30/2013/NĐ-CP dated April 08, 2013 of Vietnam’s Government on air transport business and general aviation activities.

According to Clause 5 Article 1 of Decree No. 89/2019/NĐ-CP of Vietnam’s Government, the minimum amount of capital (including equity and loans) required for establishment and maintenance of an airline regardless of whether the business operates international air transport or only operates domestic air transport shall comply with the following regulations:

giam muc von toi thieu thanh lap DN kinh doanh van chuyen hang khong, Nghi dinh 89/2019/NĐ-CP

- With regard to an airline operating up to 10 aircrafts, the minimum amount of capital shall be VND 300 billion;

- With regard to an airline operating from 11 to 30 aircrafts, the minimum amount of capital shall be VND 600 billion;

- With regard to an airline operating more than 30 aircrafts, the minimum amount of capital shall be VND 700 billion.

The minimum amount of capital required for establishment and maintenance of a general aviation enterprise shall be VND 100 billion.

A foreign-invested airline must conform to the following requirements:

- Foreign ownership shall not exceed 34% of the charter capital;

- There is at least one Vietnamese natural or juridical person owning the highest share of charter capital;

- In cases where a Vietnamese juridical person has foreign investment capital, the foreign share of equity participation shall not exceed 49% of the charter capital of that juridical person.

View details at Decree No. 89/2019/NĐ-CP of Vietnam’s Government, effective from January 01, 2020.

Thu Ba

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