VietNamNet Bridge – The Civil Aviation Transport Administration has drafted a document that calls for all business sectors in the country as well as foreign investors to take part in the aviation industry.

Passengers exit a Vietnam Airlines' jet after it lands at Vinh Airport. All business sectors in the country as well as foreign investors are being encouraged to take part in the aviation industry.

The aim is to improve domestic air-transport facilities and develop the aviation sector.

The draft also includes strict regulations for companies that want to open an airline.

It stipulates that the Vietnamese side must contribute more than 50 per cent of an airline's legal capital in a joint-stock airline company.

Foreign entities investing in an air-transport company would be allowed to hold no more than 30 per cent of the company's legal capital, the document said.

To avoid illegal "on-paper-only" airline companies, the Ministry of Transport has also proposed a legal capital framework for airlines of different sizes.

An airline using between two and 10 airplanes must have prescribed capital of at least VND700 billion ($33.62 million) if it wants to open international routes, and have VND500 billion ($24 million) if it wants to participate in domestic routes. The new legal capital levels are VND200 billion and VND100 billion higher, respectively.

The Viet Nam Aviation Administration has agreed with the Transport Ministry's proposal, saying that input costs for airline transport services have increased quickly.

Investors, however, under the draft document, must have sufficient capital to pay for service suppliers, according to a representative of the Viet Nam Aviation Transport Administration.

Those who are operating an airline but lack the required legal capital will have their business licences revoked.

The new regulation was drawn up because some investors cannot pay costs needed for service suppliers, creating chaos in the market.

The draft also contains provisions that make it easier for investors to take part in the aviation sector.

For instance, investors will not be required to deposit a certain amount of money as legal capital at banks when applying for investment licences to set up an airline firm.

The draft also proposes that the Government give investment priorities to the upgrading of important airports, including Noi Bai, Cat Bi, Da Nang, Tan Son Nhat and Cam Ranh.

It also requires new measures that would make more effective use of ports, such as Can Tho and Phu Quoc. The draft recommends that ports continue to be upgraded in provinces, and calls for more capital for Long Thanh International Airport as well.

The proposal also deals with building a national fleet with different kinds of airplanes, of which the Vietnamese side will hold more than 50 per cent.

In addition, aviation security and safety, as well as environmental protection, are areas that need more attention, according to the draft.

The goal is to have Viet Nam as one of the top three countries in Southeast Asia with a well-developed aviation sector.

VietNamNet/VNS