Eligibility requirements for airport or airdrome service business in Vietnam

 Eligibility requirements for airport or airdrome service business in Vietnam (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

1. Types of Airport or airdrome services in Vietnam

Airport or airdrome services shall include:

- Passenger terminal operation services;

- Airfield operation services;

- Air cargo terminal or warehouse operation services;

- Aviation fuel supply services;

- Ground engineering and commercial services;

- Airline catering services;

- Aviation equipment repair and maintenance services;

- Aviation engineering services;

- Aviation security services.

(Clause 1 of Article 15 of Decree 92/2016/ND-CP)

 2. Eligibility requirements for airport or airdrome service business in Vietnam

- Air service enterprises shall be entitled to provide air services referred to Section 1 after obtaining the license for airport or airdrome service supply, unless otherwise stipulated by Clause 3 and 4 of this Article.

- Airfield operation services shall be provided by airport enterprises or any organization in the exercise of authority delegated by the Ministry of Transport to manage airport infrastructure.

- Aviation security services shall be provided by the aviation security control force which is organized in accordance with Article 195 of the Law on Vietnam Civil Aviation.

(Clause 2, 3, 4 Article 15 Decree 92/2016/ND-CP)

3. Requirements for issuing a license to provide airport/airdrome services in Vietnam

-  Every airport/aerodrome service provider shall satisfy the requirements specified in points b, c and d clause 2 Article 65 of the Law on Vietnam Civil Aviation and undergo appraisal and evaluation carried out by the CAAV according to the corresponding service sub-sector specified in clause 1 Article 15 Article 16 of Decree 92/2016/ND-CP.

- The minimum amount of capital required for establishment and maintenance of an airport/aerodrome service provider shall comply with the following regulations:

+ Passenger terminal operation services: VND 30 billion;

+ Air cargo terminal or warehouse operation services: VND 30 billion;

+ Aviation fuel supply services: VND 30 billion.

- Airport enterprises providing passenger terminal operation services; air cargo terminal and warehouse operation services are not required to satisfy the requirements set out in points a and b clause 2 of Article 16 of Decree 92/2016/ND-CP

- As for providers of passenger terminal, air cargo terminal operation, fuel supply, ground engineering and commercial, and airfield operation services, foreign equity participation shall not exceed 30% of the charter capital of these providers.

(Article 16 of Decree 92/2016/ND-CP, amended by Decree 89/2019/ND-CP, Decree 64/2022/ND-CP)

3. Requirements concerning capital for airport or airdrome service business in Vietnam

- The minimum amount of capital required for establishment and maintenance of an airport, airdrome service enterprise shall comply with the following regulations:

+ Passenger terminal operation services: VND 30 billion;

+ Air cargo terminal or warehouse operation services: VND 30 billion;

+ Aviation fuel supply services: VND 30 billion.

- As for enterprises providing passenger terminal, air cargo terminal operation, fuel supply, ground engineering and commercial, and airfield operation services, foreign equity participation shall not exceed 30% of the charter capital of these enterprises.

(Article 17 of Decree 92/2016/ND-CP)

4. Cases of elimination or cancellation of a license for airport, airdrome service supply in Vietnam

A license for air service supply shall be eliminated or cancelled in the following cases:

- Provide unauthentic information included in the application dossier;

- Fail to meet minimum capital requirements during operations;

- Commit serious violations against laws on national security and defence;

- Terminate operations according to laws or upon the request of an enterprise;

- Receive the Civil Aviation Authority of Vietnam’s third warning within 12 months without taking any remedial actions;

- Commit serious violations against regulations on aviation security, safety, regulatory business requirements, service price, fire fighting and prevention, and environmental protection;

- Pend supply of airport, airdrome services that must be commenced within a permitted period of 12 months from the date of issuance of a license.

(Clause 1 of Article 20 of Decree 92/2016/ND-CP)

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