Legal Counselling

Vietnam: The rental price at airport/airfield in the lease contract is adjusted every 5 years

10:35, 30/10/2015

This is a notable content of the Decree No. 102/2015/NĐ-CP on management and operation of airports and airfields issued by the Government of Vietnam on October 20, 2015.

Giá cho thuê tại cảng hàng không, sân bay trong HĐ cho thuê được điều chỉnh 5 năm/lần, Nghị định 102/2015/NĐ-CP

According to Article 31 of the Decree No. 102/2015/NĐ-CP of the Vietnam’s Government, rents for property on leased land at the airport/airfield invested by state budget include:

- Fixed rent which is calculated according to annual depreciation of the construction work, loan repayment plus interest (if any), cost of management and operation of the construction work, and other costs as prescribed;

- Variable rent is a percentage of annual revenue from the operation of the construction work.

Concurrently, rent is determined according to: value of the construction work; functions and technical characteristics of the construction work; conditions for leasing; rights and obligations of the parties; other conditions.

Besides, it is noted that the rent on the lease contract must not fall below the approved pricing scheme. The rent in the lease contract may be adjusted:

- Every five years;

- When the inflation rate of Vietnam exceeds 15% per year;

- Other cases proposed by the parties and accepted by the regulatory body that approved the pricing scheme.

Thus, according to the above-mentioned provisions, the rent on the lease contract must not fall below the approved pricing scheme. Concurrently, the rent in the lease contract may be adjusted every 5 years.

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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