Vietnam ministry proposes easing capital rules, raising foreign ownership cap for new airlines

Under the draft decree, which is being circulated for public comment by the ministry, airlines operating up to 30 aircraft would be required to have minimum equity capital of VND300 billion (US$11.6 million), while those operating 31 aircraft or more would need VND700 billion ($27 million).

Current regulations require airlines to have at least VND300 billion in equity to operate up to 10 aircraft, VND600 billion ($23.2 million) for fleets of 11 to 30 aircraft, and VND700 billion for more than 30 aircraft.

The draft would also raise the maximum foreign ownership stake in Vietnamese airlines to no more than 49 percent, from the current cap of 34 percent.

The Civil Aviation Authority of Vietnam said the higher foreign ownership limit is intended to help airlines attract additional capital, management expertise, and operational experience from overseas partners, while remaining consistent with Vietnam’s international commitments on market access.

The authority said the proposed 49-percent cap would not affect domestic investors’ control of airlines or their ability to make decisions in special circumstances, including matters related to national security and air transport operations.

Another key change would allow companies seeking an airline operating license to prove their equity capital through audited financial statements, rather than having to provide bank confirmation that capital contributions have been placed in blocked accounts.

The aviation authority said requiring large sums to be frozen in bank accounts until licenses are issued has constrained companies’ financial flexibility, including their ability to lease aircraft and invest in equipment.

The draft decree would also allow airlines licensed for scheduled commercial services to operate non-scheduled commercial flights without applying for a separate license, reflecting existing operational capacity and business practices.

Authorities said the proposed change would help airlines expand services within their capabilities, as scheduled carriers already meet higher requirements related to frequency, traffic rights, and airport slot allocations.