Deputy Minister of Transport Nguyen Hong Truong talked about the conditions for investors to buy the operation rights to a number of airports in the country after the ministry unveiled an airport sale plan. 

Deputy Minister of Transport Nguyen Hong Truong.

The Ministry of Transport has announced a list of airports and seaports to be put up for sale to raise funds for other projects. Is it a move to equitize State assets?

- Nguyen Hong Truong: It is correct to say that the move is a process of calling for investments from different economic sectors in infrastructure projects. Resolution 13/2012 of the Party Central Committee allows mobilization of all resources in society and ensures reasonable benefits to attract investors to infrastructure development. Hence, transferring the operation rights to infrastructure projects is in line with the resolution. In the coming years, the State will only fund the projects in the areas where private enterprises are not interested, cannot or are not allowed to invest.

I want to emphasize that transferring such rights will be made with clear conditions and in line with the prevailing regulations.

What is the role of the State in the infrastructure projects sold or transferred to investors?

- The management role of the State in the projects operated by enterprises from other economic sectors will remain unchanged and are clarified in related regulations. The investors and operators of seaports will have to follow maritime regulations, and the administering management agency is the Vietnam Maritime Administration. It is the port authorities that license vessels to move in and out of ports and terminals, not the port operators. The Ministry of Transport still reserves the right to decide prices of services at airports and airport operators should strictly abide by civil aviation regulations. So the State will continue overseeing the operations of airports and seaports.

The role of the State is to decide whether to transfer part or all components of an airport in line with related regulations. This means the administration of the State remains unchanged; in other words, the State will continue overseeing and regulating activities of the parties concerned at the infrastructure projects sold or transferred to them. This will result in quick returns on investment, help diversify service providers and improve service quality, and limit monopolistic power in infrastructure operations.

There has been concern that monopoly will be transferred from the State sector to the private sector if airports are sold to private investors. How will the ministry deal with this concern?

- The private sector’s monopoly at airports is impossible as the State will continue regulating their operations and service prices. The State will be responsible for flight management, security and safety, and service quality, while investors are allowed to operate airports and provide aviation and non-aviation services. Responsibilities of the State and investors will be clearly defined. We should not be worried about private monopoly as the State will better administrate airports after they are transferred to private investors.     

When will the ministry be able to make clear the conditions for transfer and sale of airports?

- The conditions for selling the enterprises operating seaports and airports are specified in the Government’s Decree 128/2014/ND-CP dated December 31, 2014 on sale and transfer of State-owned enterprises and the scheme approved by the Prime Minister on restructuring enterprises with 100% State ownership.             

Meanwhile, Decree 15/2015/ND-CP on public-private partnership (PPP) investment and projects funded by the State budget regulates transferring the operation rights to infrastructure projects. Accordingly, investors will sign contracts with representatives of the State to operate part or all of the projects in certain periods.