Illustrative image (Photo: VNA)

– The limit for foreign investors’ ownership in Vietnamese air transport businesses will be increased to 34 percent from the current level of 30 percent, according to the Prime Minister’s decree signed last week.

Decree 89/2019/ND–CP, revised from Decree 92/2016/ND–CP issued in 2016, includes regulations relating to conditional business lines in the fields of air transport and general aviation activities.Ministry of Transport, which drafted the decree, the foreign investors’ new ownership cap does not only ensure the attraction of foreign investment capital into enterprises but also the interests of domestic investors.

With the goal of reducing and simplifying business conditions and creating favourable conditions for investors to access the aviation market, the new decree regulates that an air transport business operating 10 aircraft or fewer will need to have a minimum capital, including ownership capital and loan, of 300 billion VND (12.9 million USD). Businesses operating from 11 to 30 aircraft will need minimum capital of 600 billion VND, while those with more than 30 aircraft will be 700 billion VND.