Determination of minimum payment to state budget for new airports and aerodromes in Vietnam

Determination of minimum payment to state budget for new airports and aerodromes in Vietnam

Additional regulations for newly constructed airports which have been compensated and cleared by the State using state budget funds. The minimum payment to state budget (m3) is determined using the following formula:

m3 = g x s

Where:

- g is the highest land valuation price per 1 m2 approved by the competent People's Committee for compensation calculation when the State recovers land to invest in and construct the airport (as of the time of approving the bidding dossier to select the investor);- s is the area of the project land stated in the "anticipated land use demand" section of the project category dossier approved by the Ministry of Transport in accordance with Article 6, Circular 23/2021/TT-BGTVT.

This value is determined to be relative, serving as a basis for investors to propose contributions to the state budget, and is independent of the land rent that investors must pay in accordance with the land laws.

Amendments of regulations on preparation and submission of registration for project execution in Vietnam

The regulations on preparation and submission of registration for project execution in Article 8, Circular 23/2021/TT-BGTVT are amended as follows:

- Investors are responsible for preparing and submitting the project registration documents based on the information published in accordance with Clause 2, Article 7, Circular 23/2021/TT-BGTVT.

The investor's project registration documents include:

+ A written project registration;+ Documents on the investor's legal status, capacity, and experience; other related documents (if any).

The submission of project registration documents is conducted in accordance with Circular 10/2022/TT-BKHDT.

- Upon the expiration of the project registration period, the Civil Aviation Authority of Vietnam will organize a preliminary evaluation of the capacity and experience of the investors who have submitted registration documents.

Minimum payment to state budget for airports and aerodromes in operation in Vietnam

For operating airports, the minimum payment to state budget (m3) is determined using the following formula:

m3 = n x (m : 49)

Where:

- n: the project operating period after the completion of investment work as prescribed at Point a, Clause 2, Article 7, Circular 23/2021/TT-BGTVT.- m: the minimum payment to state budget for a project with a 49-year land lease term, calculated according to the formula specified at Point k, Clause 2, Article 47, Decree 25/2020/ND-CP and Appendix V, Circular 06/2020/TT-BKHDT of the Ministry of Planning and Investment of Vietnam guiding the implementation of Decree 25/2020/ND-CP.

This value is determined to be relative, serving as a basis for investors to propose contributions to the state budget, and is independent of the land rent that investors must pay in accordance with the land laws.

More details can be found in Circular 12/2023/TT-BGTVT which comes into force in Vietnam from June 29, 2023.

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