The Ministry of Construction is proposing a significant change to Vietnam's aviation sector, suggesting that foreign investors could own up to 49% of Vietnamese airlines. This proposal, outlined in a draft Decree on Air Transport, seeks to increase the current foreign ownership limit from 34%.

The existing 34% cap on foreign ownership has been identified as a significant hurdle, deterring international investment in Vietnamese airlines. Luong Hoai Nam, former CEO of Bamboo Airways, highlighted in 2024 that this limit restricts investors' veto power and deeper involvement in strategic business decisions. This contrasts sharply with regional practices, where countries like Thailand, Indonesia, and Cambodia permit 49% foreign ownership, and the Philippines allows 40%. Over a decade ago, international partners could also hold up to 49% in Vietnamese airlines.

The current aviation market sees several airlines, including Vietravel Airlines and Bamboo Airways, undergoing restructuring, necessitating increased participation from both domestic and international investors.

Beyond increasing foreign ownership, the Ministry of Construction's draft also addresses minimum equity requirements for establishing and maintaining regular commercial air transport operations. The proposal suggests that airlines operating up to 30 aircraft would need 300 billion dong in equity. For those operating 31 aircraft or more, the minimum equity requirement would be 700 billion dong. This update contrasts with current rules, where 300 billion dong only covers operations for up to 10 aircraft, and 600 billion dong is needed for 11-30 aircraft, while 700 billion dong is required for over 30 aircraft.

The Ministry of Construction states that these proposed changes aim to facilitate greater business participation in air transport and enhance the oversight capabilities of aviation authorities.

By Anh Tu